What is an NFT?
NFT stands for “non-fungible token”. Ok, but what does that mean? It means that there is a record on the blockchain that this asset is assigned to you. As long as you hold the NFT in your wallet, the asset (image) associated with that NFT is yours. That NFT is unique, a one-of-a-kind digital asset. Just like you and me, there are no two alike. NFTs may share the same similarities and traits, but each is different. Note that some NFTs are a "Series", meaning that the asset the NFT represents is in a series of the same item, like (1 of 500), but the NFT you hold in your wallet represents one of those series individually.
Specifically, "non-fungible" means it cannot be equally traded with another NFT at the same value. Each NFT has its value. A "fungible" token like Bitcoin all are of equal value.
These NFT tokens are unique entries stored on the blockchain, making them not only permanent but also immutable. The blockchain registers each owner and transaction, providing ownership rights and allowing a history record if the NFT is bought, sold, or transferred to someone else.
But isn't it just a JPEG?
What sets NFTs apart from JPEGs is the blockchain. NFTs are recorded on the blockchain. Every transaction is recorded, which means no one can dispute your claim of ownership.
This key point is why NFTs are sought after and have many applications beyond just the art. Anyone can screenshot an image that an NFT represents, but only the holder of the NFT can stake claim to it and prove that they own it through the power of digital ownership.
Web3 Applications can use NFTs as unique identifiers for online credentials. We have already witnessed Coachella sell out its NFT collection, where holders can redeem it for art prints or access every concert for life. As long as the owner holds the NFT, they retain the rights & access to these events. Once sold, the transfer of ownership is logged on the blockchain, and the new owner receives these benefits.
This is only the start; actual use applications are endless and only limited by your imagination and creativity.
Use Cases of NFTs
Now that you have the definition of an NFT, let's talk about why people buy an NFT.
First and foremost is the collector aspect, which is at the core of VRYNT.
When you purchase an NFT, you are supporting the collection owners' initiative. VRYNT allows you to lend your creativity to the process of creating the NFTs in the collection. Other reasons that people buy NFTs are:
Social Status & Online Bragging Rights
- Community engagement
- Special Gaming Items with Utility & Status
IRL (In Real Life) Utility - Ex. Holder gains access to concerts, Real Estate, Music, etc.
Alternative Investments & Higher Returns
Collecting digital art to display and curating rare one-of-a-kind art
Each VRYNT collection has its unique initiative, and the collection owner decides what the utility, access, promotions or perks will be for owning an NFT in their collection.
Once you obtain an NFT, you can choose to store it in a digital wallet, select it as a PFP, or display it in virtual galleries. You can also opt to sell it at a later time. As a VRYNT collection creator, you may earn royalties each time the NFT is sold in the VRYNT Marketplace. On the VRYNT Platform, previous owners of VRYNT NFT also receive a portion of royalties each time an NFT sells on the VRYNT Marketplace.