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NFTs are exploding right now. Those who like it have to say that it is the best thing that could have happened to the blockchain space. NFT sales keep crossing million dollars. However, the value of NFTs also decline in value. So, you cannot be sure if the secondary sale of NFTs will provide you with profits.
Even during bearish times it is possible to pin point and identify NFT collections that can go up in price immensely. NFTs are gaining recognition as digital goods. However, there is no denying that digital goods are harder to monetize.
For instance, an artist is creating a painting and it trying to sell it for a particular price. Even if someone copies the painting or sometimes takes a photograph of it and frames and uses it – this does not affect the artist badly. This is because the originality and authenticity of the original picture can be identified by the brush strokes and other features unique to the way the artist paints. Therefore, the original in the physical world can be easily identified by using the unique identifiers.
However, when it is the case with a digital artist who comes up with an art work, then when it is displayed online, immediately when someone takes a screen shot of it and makes it in to a JPEG image, the artist will lose all control over the asset. So, a digital creation can be copied with something as simple as a right click. And, these copies are going to look 100% identical to the original digital work. Thus, the art work done online will not any longer be a scarce resource. And the value of the art drops down to nothing.
NFTs are trying to change something here. What is that? Fungible items are interchangeable; however, non-fungible tokens are not inter-changeable. A complete interchange is not possible with NFTs.
NFTs are making use of the blockchain technology to undeniably verify who has the original of a digital product. A Digital Product is a software enabled product or service that offers some form of utility to a human being. In other words, all digital products, from a mobile app to a website experience, attempt to solve a problem for a group of people trying to accomplish something. And, all kinds of digital media audio, picture, and video files can be converted to an NFT token. NFTs represent the ownership unique to a digital asset. When people buy and sell NFTs they are selling virtual ownership over something.
