While the whole world now accepts cryptocurrencies, a new concept has recently joined our lives; NFT! In this post; we, As Information Technologies, will closely examine the NFT technology, which has recently increased in popularity, with you.
NFT (non-fungible token) has unique identifiers that can prove ownership of digital products. These identifiers can be controlled by the blockchain.
-NFTs represent photos, video, audio, and other digital files.
Until NFT technology came along, digital artifacts were not as valuable as physical artifacts. The reason for this was that while the authenticity of physical works could be proven, it was almost impossible to check which of the digital works was original or not. Thanks to NFT technology, originals, and copies of digital works can now be distinguished.
Market Cap of NFT
NFT's market value has exceeded $250 million by 2020, leading to an increase in NFT transactions and increased criticism against NFT technology.
The biggest factor causing the criticism to rise is the computational processes associated with the blockchain of the proof-of-work (PoW) used in NFT technology. These processes require high energy inputs that contribute to global warming.
The carbon emissions generated by the energy required for the sustainability of blockchains have forced the NFT market to rethink its carbon footprints.
An example of an NFT Market (OpenSea, the largest NFT marketplace)
Why Are NFTs Being Invested in?
NFT can be traded multiple times, but the buyer must pay a royalty fee to the owner or creator when purchasing the NFT work. NFT owners, on the other hand, display their expensive NFT works on digital platforms as an indicator of wealth. Recently, NFT works have begun to provide some online communities with exclusive content and the right to participate in live events.
It seems that the future of NFT will continue to be mentioned frequently on the agenda as companies' orientation in this direction continues to increase.
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