Understanding the investment world can be difficult, especially when you consider the myriad of asset classes, fund structures, and tax-advantaged vehicles available in the marketplace. Factor in previously unfathomable situations, like a global pandemic and negative interest rates, and the complexity is magnified exponentially.

About NFT 

A digital asset that reflects real-world elements like art, music, in-game goods, and movies is known as an NFT. They’re bought and traded online, often using cryptocurrency, and they’re usually encoded with the same software as many other cryptos.

Despite the fact that they’ve been available since 2014, NFTs are rising in popularity as a more popular means to buy and sell digital art. Since November 2017, a whopping $174 million has been spent on NFTs.

What are the Benefits of NFT?

Authenticity

The benefits of non-fungible tokens rely largely on the uniqueness of the tokens. NFTs are created on the blockchain, thereby implying the association of unique records with them. The unique traits of NFTs showcase their potential for contributing value. At the same time, NFT creators have the privilege of issuing only a specific number of NFTs to introduce scarcity of supply. 

Unique –Each NFT has a distinct attribute, which is often recorded in the token information. NFTs have distinct personalities, and no two NFTs are alike. An original image.jpg file, on the other hand, is identical to its duplicate, a.jpg file.

Transferability 

The trading of NFTs is based on smart contracts. A smart contract is autonomous, secure, accurate, and free from interruption. The use of a smart contract eases the transfer of ownership of NFT as it only requires the fulfillment of specific conditions between buyer and seller according to its outline.

Digitally Scarce resource

 The blockchain network is where NFT is kept. As a result, the certificate of ownership is available on different networks, allowing the owner of a digital item to be proven.

Collectibles

NFTs have been used to create valuable collectibles. For example, CryptoKitties are digital kitties that have unique looks, and they can be owned by users. The kitties are traded on-chain, and they have their own market value.

Indivisible

 You can’t break most NFTs into smaller denominations, and you can’t buy or transfer a portion of them.

Royalties

NFT provides an opportunity for content creators to retain their full ownership of the copyright. NFT supports the content creators to set up a smart contract when generating NFT by giving ownership on the content only. With this set-up, the original content creator will get paid when selling their content as well as getting royalty payment each time, the new owner sells their content.

Representing Real-Life Assets

NFTs can be used to represent real-life assets. For example, a company can create a unique asset on a blockchain that can represent a share of the company. The asset can then be traded on an exchange.

Immutable

NFTs are immutable because once data is recorded on a blockchain it is impossible to change. This creates a transparent record of ownership and transactions.

Decentralized Tracking

NFTs can be used to create decentralized tracking systems. Ownership can be recorded on the blockchain, and ownership can be transferred in a decentralized fashion.

Greater Accessibility

NFTs can be used to make ownership more accessible. It is much easier to transfer ownership of an NFT compared to transferring ownership of real-life assets. 

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