There's been a lot of news & hype surrounding NFTs over the last 2 years. Many people view NFTs as a way to make money, because some of the most successful NFT projects have exploded in popularity, and have thus become very valuable.
However, NFTs can do a lot more than create a resale opportunity. They unlock new ways in which brands & organizations can connect & reward their community of NFT holders.
An NFT is a unique identified object, unlike crypto-currencies which are fungible type objects (exchangeable and interchangeable for objects of the same value). A bitcoin is a type value, which can be collected together with other bitcoins. The bitcoins in a collection are of identical value (for unit bitcoins for example). They can be serialized eventually but in practice this is not exactly the case. An NFT cannot be confused with another NFT, they are two different objects that cannot be confused and taken for each other.
What makes the difference is the codification of the identity of the object, which is unique for an NFT, while it is not for blockchain objects like cryptocurrencies.
NFTs have been, or are used in specific applications for which this unique identification carries specific meaning. NFT technologies are used for example in some games. There are also applications outside the playful context, where objects are "registered" with NFTs to guarantee absolute traceability.
For the record, blockchain techniques involve the organization of data in totally decentralized databases, the blockchain being representative of the storage and transport of the objects that come under its control. The storage is done on supports at the level of workstations, storage units, or servers, and the digital objects are accompanied by their NFT identification or not. Access to an object requires security codes which make it possible to observe the object and possibly to move it, to transfer control of it to another storage.
In this context, the identification elements of the object carry the notion of type, which is the case of a bitcoin for example, or they carry more strictly unique identifier information, this is the case of NFTs .
EXAMPLE USE CASE
Someone wants to throw an event for people who support cool brands. They have a list of brands they think are cool, and want to limit attendees to those who are actually involved with those brands.
Without NFTs, that event organizer would need to reach out to each brand, and ask for a list of their customers to cross reference with their attendees. I don't think any company would readily hand over a list of their customers...
Instead, they could limit their guest list to anyone who owns an NFT from the brands' collections. This wouldn't take much effort at all, and would confirm that anyone walking through the door is a current supporter.
If NFTs can enhance real-word events, they can do the same for social networks, games, or virtually anything else. This is why there's been so much talk about the metaverse, because it will be built using blockchain technology and seamlessly interact with assets like NFTs.
NFTs enable anyone to verify your ownership/participation with a business, organization and/or collection. That means people can build unique, exclusive experiences by simply reading the blockchain.
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