Non-Fungible Tokens are perhaps the most exciting development in crypto this year. While many believe the future of NFTs to be bright, few understand their value and potential. To separate hype from hard facts, Kraken Intelligence has compiled an in-depth report outlining what they are, how they work, and why they’re valuable.
Download “Non-Fungible Tokens (NFTs): Redefining Digital Scarcity” to learn why celebrities, sports teams and even corporations like Visa are diving head-first into this technological innovation that enables provable, verifiable ownership of everything from graphic art, to music, to real estate.
Not Just a JPEG or GIF
NFTs are more than digital artwork — they represent identity and verifiable proof of ownership on a blockchain. They can function as a passkey to unlock access to exclusive experiences, such as events, blog posts or communities. Not only that, but any form of intellectual property or physical item can be minted and linked to a blockchain.
Proof of Community
Cryptopunks, Cool Cats and The Bored Ape Yacht Club are just some of the more popular NFT collections with a loyal following. Behind these collections lies a vibrant community of people sharing a common interest. The NFT can serve as both a funding mechanism for those same communities and a passkey for those who wish to join.
Owning and Storing NFTs
After a collection is entirely minted, most NFTs are typically available for purchase on secondary markets. Most corresponding content or art is likely stored off-chain to reduce costs and some creators may store it in a centralized server — which could increase the risk of a dead link to the NFT should the server fail or shut down.
What Makes NFTs Valuable
There are many factors that contribute to the value of NFTs. Value can be attributed to immutable ownership, digital scarcity and smart-contract-based governance. No matter how much time passes, an NFT’s history can be authenticated and it can not be duplicated. Supplementary value lies in their ability to be utilized across applications and frictionless transfer via a secondary market. As barriers between content creators and their audience are removed, NFTs can disintermediate media platforms who monetize content at their discretion. This development can further empower the creator economy.
Download the Kraken Intelligence report “Non-Fungible Tokens (NFTs): Redefining Digital Scarcity” to take a deep dive into understanding this transformative technology.