The NFT Industry Is About to Boom, Here’s Why

Image via coindesk.com

Unless you live under a rock, the odds are you’ve probably heard of NFTs by now. Whether or not you actually know how NFTs work is a different story. However this new utilization of blockchain could potentially be one of the greatest innovations of the 21st century. There are a few reasons for this, which we will discuss throughout the article. However before we can discuss this blockchain phenomenon, one question must be laid to rest. What exactly are NFTs, and how do NFTs work?

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NFTs Explained

Non Fungible Tokens (NFTs) can be imagined as unique pieces of work which can be added to a system which validates no other versions of that NFT exist. This system is called blockchain, and it is much more complex than just that. However for the sake of this article we will refer to the blockchain as a piece of technology which allows NFTs to remain unique. An NFT can be an image, music, document, or anything else that someone wants to store on the blockchain.

This new technology is slowly becoming more mainstream, which means the entire NFT industry is still very young. This is an important distinction to keep in mind throughout the rest of this article. It should also be noted that NFTs rely entirely on blockchain technology in order to function.

How NFTs Are Evolving

As time continues, we are seeing more and more ways in which NFTs can be applied. It started with artwork, however people soon realized NFTs could be used for much more practical applications. This is why we are beginning to see NFTs being used to store concert tickets. It is likely we could begin seeing NFTs utilized to store legal documents. This would cause NFTs to become less of a novelty, and more of a practical application of blockchain technology.

The Future of NFTs

Since the NFT industry as a whole is still in its infancy, it is very hard to predict the direction it will head in the future. Many people predict that NFTs are still only beginning to find practical uses, which means as more NFT companies develop. We could begin to see entire industries emerge within the broader NFT industry. Much like how the blockchain industry houses both the crypto industry and the NFT industry. When this starts to become a reality, the NFT industry as a whole will boom.

Final Thoughts

Although we wish we could predict the future, unfortunately we cannot. Which means the only way we can discover the true fate of the NFT industry, is by waiting for time to pass. This is an unfortunate reality, especially with a technology as exciting as blockchain.

One More Thing

If you enjoyed this article, please consider following me on Twitter: @natexlee.

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