For a long time, several cultural assets have only been owned by a precious few who could afford them. Whether it’s a rare piece of art or tickets to a performance, only the elite were able to enjoy the beauty of art. However, as times change and technology evolves, we have been able to slowly bridge the gap with regard to access to assets. One novel technology that has been instrumental in letting anyone own a piece of culture is NFTs or non-fungible tokens.
NFTs are digital tokens that give the holder access to a unique asset. They allow for complete ownership of an asset which gives one a similar status as owning a physical work of art. And having a wider range of offerings, they let more people explore different niches they may not have been exposed to before. NFTs, therefore, are key to democratizing the creation, ownership, and trade of rare assets.
The reach of NFTs
As we discussed above, NFTs have applications in several sectors from NFT gaming marketplaces to sporting stadiums to art galleries. With such a diverse range of offerings, there is something for everyone, letting more people own a slice of the cultural pie. Moreover, even if certain NFTs are pricey, there is now a new concept called fractional NFTs. This way, several tokens are linked to an invisible whole NFT, letting several people own a part of a single NFT.
Another advantage of NFTs is that they are built on blockchain technology which allows for the accurate tracking and verification of NFT ownership in a decentralized manner. NFTs also use smart contracts which are automatically executed based on a set of predetermined conditions and rules. This eliminates the interference of third parties and other intermediaries and allows the creator to directly profit from the sales and even earn royalties on the best NFT marketplaces. The buyer, too, benefits from the reduced cost and increased transparency.
Closing Thoughts
In short, it is certain that NFTs can help a lot of people own rare and unique assets. However, we must remember that there is always a flip side. For instance, concerns have been raised regarding the fact that there may be the creation of a class of digital elite who will be able to afford these digital assets. So while NFTs can definitely be used to democratize ownership of assets, it is important to keep in mind that they can have implications and therefore must be used in a way that benefits ALL of society.
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