In the last couple of years we keep hearing more and more about JPEGs and NFTs going for absurd prices and we might be thinking “why is an image worth more than a car?”. I am right up with you on that one, however I will try my best to explain not only why people see them as investments, but how they might change the very world we live in.
First of all, what is an NFT? The name itself is an abbreviation for “non-fungible token” and it refers to its properties that it has from being on the blockchain:
It is “non-fungible”, meaning it is unique and it can not be replaced by anything else. Because the supply is very limited, “collectors” go mad paying mad prices for the rarest of NFTs
It can’t be vandalized, hacked or modified in any way, since it is on the blockchain. Everyone that has access to the blockchain knows the previous owners, how many copies of the project there are, how much each sells for, etc
OK, it is rare, unique and it can’t be hacked. But it’s still just a JPEG, right? This is another misconception about NFTs that I would like to clarify. The craze isn’t about some images with monkeys on them, it’s about the technology. It can be used in so many ways that can help society and create opportunities for so many people. Let’s go through some of them:
You can make your ID, passport or driving license an NFT. This can help with identity theft and can help authorities identify people way faster
You can make train, bus or concert tickets NFTs. This can help in so many ways, but mainly it can help with moderating the after-market prices of popular concerts’ ticket prices, limiting the amount of tickets people buy etc.
You can make songs and recordings NFTs, having the guarantee of authenticity and also helping to stop the piracy in the music industry.
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