NFT, Otherwise known as Non-fungible Tokens should be one of the most exciting innovation in crypto this year.
For a deeper understanding of where the momentum is coming from, flipmemes.com compiled a comprehensive overview, to explain how these NFT’s work and why they’re valuable.
“Non-Fungible Tokens (NFTs) are more than just JPEGs or GIFs, they help empower online communities and serve as a technological breakthrough for content creators looking to build an economy with direct access to their consumers.
As art and music appear to be the initial use cases for NFTs, they represent so much more. Many are sold as part of a limited collection, which buyers then use as a form of digital identity and affiliation with a community.
Meanwhile, Those NFTs can serve as a fundraising mechanism for the community who issued them and in turn reward members who bring the greatest value or reinvest the funds in future activities.
It is noteworthy that an NFT is digitally scarce and verifiably authenticated on a blockchain, which makes it easier to act as a passkey for exclusive content or an activity at the creator’s discretion.
In addition, when the NFT is created via a smart contract, should the asset be continuously sold in the future, a portion of the proceeds can be returned to the creator in the form of a royalty.