NFTs; are such a trend that rapidly influences most people globally for their usage. NFT, also known as a Non-fungible Token, is a complex set of data that is included in a blockchain. With this, it can be linked to digital or physical objects as proof of ownership. However, many people are still wondering about its existence and are still figuring out what is NFT used for.

Why the big issue about NFT?

As stated earlier, NFT consists of a complex set of data and it is non-fungible. What this means is, that there is no other copy or duplicate of the NFT. Therefore, due to the rarity of its complex and unique data, the value of NFT can sometimes exceed more than anyone could imagine. Despite being able to attract potential buyers of the NFT, the value of the NFT depends on the value of the cryptocurrencies that one buys it on. 

what is NFT used for

What is it used for?

Take an example like collectable cards or art. People would bid, trade and exchange collectable cards or art with other collectors according to the value of those cards and art right? It is a similar concept, however, NFT is 100% online, with a unique unit of data which makes it impossible to have a duplicate or copy of it. Here are some examples of what NFT is often used for:

Digital Contents

Digital content includes content like digital artwork, music, and collectables. Why is this so? When creators link their digital content to NFT, these digital creators have the freedom to publicise it on any platform due to the ownership they have of the NFT. It is also due to the unique unit of data that contributes to the rarity of the digital content and eventually seeing an increase in value because of it. 

Investments

NFT can also be used as an investment, as the value of the NFT varies depending on the value of the cryptocurrency a person bought the NFT on. Getting NFT for an investment can be tricky, however, when it is done right, investments on NFT can eventually lead to an increase in value and demands of the NFT purchased. The higher the demand and attraction of the NFT in the future, the higher the value, hence the greater the investment done on the NFT. 

what is NFT used for

Gaming Items

NFT is observed to provide many benefits to the players by recollecting spent on gaming characters by selling them. Usually, players would spend their money to purchase items for in-game character upgrades. However, with NFT, players can sell their characters once they are done with them with a higher value and rarity of the NFT. 

To sum it all up, NFTs are the rave now due to their complex and unique unit of data, which contributes to their rarity in the digital world. Also, because of its rarity in the sense that there are no two identical NFTs, the demand and attraction towards certain NFTs will contribute to the increase in value over time. Hence, NFT can be seen as a digital form of investment and ownership.