Product & Technology
Product & Technology
It seems only a few short years ago that most of us were using a search engine to discover what an NFT was and why everyone was talking about it. Curiously, despite the now widespread use of the term, most of us still think about this innovative digital asset in terms of particular use cases. So, to attempt to redefine the scope of NFTs, it’s probably best that we go back to the basics for a moment.
An NFT, or non fungible token, is a unique cryptographic token that cannot be copied or subdivided and which is stored on a Blockchain. Being non replicable makes them an asset with relatively stable value, and being stored on a decentralized and distributed digital ledger makes it possible for them to be traded and exchanged.
‘Minting’ an NFT is a term used for the process of converting real or non-tangible assets into digital assets, with all the advantages listed above. Naturally, this has possible applications and advantages that even those of us at the cutting edge of technology cannot completely estimate.
So what does it mean when a collector or creator 'Mints' an NFT? Ultimately it’s about being the first owner of this digital asset. If the NFT is sufficiently unique its stored value will grow with time. However, this doesn’t mean that only the first owner who mints an NFT stands to gain from it.
A case in point are the NBAs Top Shot NFTs. The global sports collectibles market is massive, estimated at $26.1 billion in 2021 and predicted to reach $227.2 billion by 2032. With authenticity guaranteed and built-in, the tokenization of assets – such as the NBA Top Shots – suddenly becomes a legitimate investment vehicle for a far wider range of investors than hardcore enthusiasts.
The fractional ownership of premium real estate is another great example. The highest end of the properties was once a notoriously competitive market, due to the small number of potential investors. Making fractional ownership of such assets available to small and medium investors has led to a seismic shift. Virtually overnight expansion of the investment pool has created a win-win scenario for both a new class of investors as well as asset holders.
While these are only two examples, they are deliberately very different to each other. The idea is to convey the sheer scope of NFT Minting and why none of us can totally appreciate just where this innovation might take us in the future. One thing is certain; the applications will be as diverse as there are assets. Eventually, it is very likely that all asset and commodity markets will want to adopt the transparency and assured authenticity that only NFTs, Tokenization, and Blockchain technology can deliver. The beginnings of the NFT Minting wave may have been niche, but they contain the seeds of a more stable trade and economics, at a greater scale than ever before.
As a Blockchain-As-A-Service (BAAS) platform Qila helps your business adopt Blockchain and crypto technologies to secure your business needs by minting non-fungible tokens, for real-world physical or digital assets, on a private Blockchain network.
In this brave new world of endless possibilities, let Qila help your business unlock the next level of growth, using Blockchain.
Discover how Blockchain unlocks transparency and efficiency, in industries from finance to healthcare.
Enhance trust, security, regulatory compliance, and data monetization with Tokenization.
Smart Contracts revolutionize agreements with automated execution, trust and transparency.
Explore Further