5 Benefits of NFTs

The NFT (Non-Fungible Token) market has grown exponentially since its inception. Even celebrities including Snoop Dogg, Jimmy Fallon, Grimes, and Tom Brady have released and/or purchased notable NFTs, lending their influence to the rising market. More and more people are putting their money in this new form of assets—“digital assets” as they call it. In fact, thousands are traded everyday with many being sold for tens of millions of dollars.

What is the hype all about? To help you understand a little bit better, we listed some of the top advantages of these tokens, which provide the foundation for their value.

1. Ownership

The foremost advantage of non-fungible tokens is evident in the proof of ownership. Since NFTs are on a blockchain network (usually Ethereum), they can help in associating ownership to a single account.

Most important of all, NFTs are indivisible and cannot be distributed among multiple owners. Simultaneously, the ownership advantages of NFTs ensure that buyers are safe from the concerns of fake NFTs.

NFT critics have openly stated that people could just take pictures of NFTs and sell them or even offer them for free. That’s true to an extent—you CAN have an image of the NFT. However, owning an image of an NFT does not necessarily mean you own the asset. For example, downloading a picture of the Mona Lisa from the internet does not make you its owner.

NFTs ensure that you own the real thing and therefore have possession overvalue. In simple words, NFTs can transform the conventional norms of verifying and managing the ownership of assets. As you can find NFTs on a blockchain network, it is possible to transfer ownership of NFTs easily. Therefore, you can also find the advantage of the easy transition of asset ownership with NFTs in many real-world scenarios.

2. Authenticity

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