The Utility of NFT

Various definitions of NFT are available in multiple media. Maybe some of us still think it is an asset similar to cryptocurrency. In fact, it is not so. The two assets cannot simply be considered the same thing.

Why so? Because the main difference between NFT and cryptocurrency lies in the word “fungible.” What is a “fungible” object in NFT? The term actually implies that it can be exchanged for things of similar value.

For example, two 50 thousand rupiah bills can be exchanged for a 100 thousand rupiah bill. It is different with NFT (Non-Fungible Token) assets. NFT is unique in each of its assets. In short, NFTs are blockchain-based digital assets that can represent specific objects, such as paintings and other properties. It is considered one of the best methods to buy and sell digital assets. This is because NFT provides ownership certificates that can only be accessed by buyers and sellers.

So, based on this, NFT has been applied in many industries, from the business sector to the arts. The following is the application of NFT that we have summarized.

NFT for The Arts

For art activists, NFT is a breath of fresh air for artists. Through blockchain technology, NFT provides guarantees for artists to own their work. It is a way for digital artists who have been struggling with the dangers of plagiarism and creative theft. The innovative contract system built into the NFT technology allows the artist to view and record the royalty percentage each time his work changes hands.

NFT in Business

The Non-fungible Token or NFT business is expected to be more promising. However, this is with a record that communities or entities in various industries are willing to enter the digital asset sales platform.

NFT is a derivative of blockchain whose payments use cryptocurrency money. That’s why some call it NFT Crypto or NFT Coin. If you are interested in investing in NFT assets, keep in mind that in NFT, there is no concept of dividends or cash flow. The profit can be obtained only from price increases or capital gains.

Like investments in general, you should invest in assets that are liquid or easy to convert back into money. The price of an NFT that is liquid and can be used as an investment generally ranges from hundreds of millions to billions. The cost of this NFT cannot be broken down into several lots of share ownership or made into mutual funds. So, investing or trading NFT is known as the investment of the rich.

NFT for Travel

NFT can be used for various purposes. One of them is to support tourism and creative economy campaigns in Indonesia. Minister of Tourism and Creative Economy Sandiaga Uno supports the use of NFT for tourism purposes.

The tourism business line development scheme with NFT can be an alternative for tourism industry managers to obtain initial capital funds and maintain business viability with funds that have been distributed by NFT holders. This is known as pay now, travel later.

NFT for Donations

NFT also has a significant impact on the donation system or charity. This scheme has similarities to donating valuable items or raising money through auctions. In fact, some NFT projects don’t hesitate to donate hundreds of thousands, if not millions of dollars, to nonprofit organizations.

NFT of Everything

NOE or NFT Of Everything is the concept of adapting NFT technology to various fields. NOE is a business model exploration step, user experience (experience for users), and system building (system development) with NFT as the basis of the product. With NFT’s vast and continuously developing capabilities, NFT can be used in many things in our lives.

Everything related to ownership, certification, and identification can be stated in the NFT. NFT provides a secure, compliant digital proprietary protocol. Therefore, the development of this NOE is significant for heading into a new era of Metaverse. In the Metaverse, all will need identification, a certificate of ownership, and much more. NFT can be the basis.

Already have an idea about using NFT in various fields? Come on, explore your experience using and owning NFT with Baliola!