NFTS were one of the most searched words in 2021. However, being one of the most popular words in digital media comes with a rise in misconceptions. Let’s debunk three common misconceptions about NFTs and clarify the truths to better understand the potential value and utility of NFTs.
Part 1: NFTs are difficult to understand
In the beginning, the notion of NFTs may seem complicated and daunting. However, with widespread adoption of these technologies, it became an easier concept to grasp. NFTs, or Non-Fungible Tokens, are designed to be one-of-a-kind digital goods. They are digital assets which represent real-world objects like art, music, in-game items, and videos. In other words, they are digital certificates stored on a publicly verifiable distributed database. The information contained in that ‘smart contract’ is what makes an NFT unique. The whole value proposition of an NFT is that it is a one-of-a-kind impossible to copy, digital creation. In simple terms, NFTs are to digital assets what a property deed is to a home or a copyright certificate is to an artwork.
Is it a bit clearer now? Tell us what you think in the comments.