NFT hype VS Real life value

Written by Anna Komashko
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NFT (Non-fungible token) is a unique set of encrypted data that lies in some kind of table. It is like the digital equivalent of an item. With the help of cryptography, you can take any set of data (for example, a picture, music, film, or something else) and make a unique token based on it.

This token will symbolize the source file. And then this token can be handled in much the same way as property is handled: buy, sell, donate, etc. NFTs are used to materialize digital assets. In a simple way, so that files can be protected from copying and unauthorized use in the same way that we protect property.

Here are some thoughts of experts about where it will come in handy in the national economy:

  1. To license films, books, music and other intellectual assets. For example, a film company has made a film and sells tokens to cinemas to play them. It’s the equivalent of mailing out physical reels of this film—only in the digital world. Or a music label sends its music to Internet radio stations, and all the music is tokenized so that the files do not spread beyond the stations.
  2. To allow artists to auction off originals of their work if the work itself exists only in digital form.
  3. To trade skins, textures, weapons and other digital indulgence in games.
  4. To register rights to objects in the physical world: real estate, cars, art objects.

So far, these are only suggestions, but NFT use cases look promising and may be implemented in the future.

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