NFTs — a new revolution in the digital world

Published in

Etheros

3 min readOct 20, 2022

The world has gone crazy over NFTs. If one were to judge what has attracted the most mainstream attention in the current bull market, it would be the first metaverse and then NFTs in the form of various images. Although NFTs are commonly understood as “selling weird images for big money”, the reality is different and there’s a plenty of ways to use this type of tokens.

NFTs began to gain popularity as early as in 2017, but it wasn’t until 2021 that they attracted huge attention. The creators of the popular series of non-fungible tokens established numerous collaborations with celebrities, whose avatars in the form of NFTs can be seen on many social media platforms. Well, many times in history, we saw examples of people going crazy for something that was popular among celebrities at the time. In this case, it’s a mutual benefit as musicians, painters or other types of artists or famous individuals can actually prolong their activity by selling their piece of art or any tokenized item in various metaverses. Companies like Adidas, Pepsi, Ubisoft, Puma, Spotify or even Instagram are fascinated with the NFT world and are implementing it as part of their strategies. NFT tokens can be a useful and valuable tool in the digital space due to their unique utility. In this article, we will show you many other applications of NFTs, with a special focus on the Etheros Metaverse.

What exactly are NFTs?

To understand what utility NFTs have, it’s important to start by understanding their name. NFTs are otherwise known as non-fungible tokens or non-exchangeable tokens and, like cryptocurrencies, they operate on a blockchain architecture. You can exchange classic cryptocurrencies for other tokens or traditional currencies at any time. Unlike them, NFTs are not exchangeable among themselves. Their non-exchangeability can be understood as “no equivalent in other currencies”. NFTs are a unique digital value that can also be reflected in certain real-world assets. Each individual NFT is special and unique — this means that it can act as a kind of a certificate of authenticity. NFT tokens are the digital property of the holder, and by saving the relevant smart contract on the blockchain, they cannot be copied or forged. This allows them to provide additional security for important documents such as property deeds.

All NTFs contain easily identifiable unique information that distinguishes them from other tokens. They do not have a predetermined value. Each NFT should therefore be treated as a unique object, representing both tangible and intangible assets.

Importantly, it is possible to purchase an NFT representing someone else’s work, but ownership of the token does not carry automatic copyright privileges. The buyer will not necessarily enjoy the privilege of ownership transfer.

What is the value in NFT?

Everyone is wondering why people are willing to pay thousands if not millions of dollars for one NFT. Let’s try to answer this difficult question — what determines the value of a given token. According to some market participants, the application of NFT tokens boils down to PFPs (Profile Pictures), which are graphics set as profile pictures on social media. However, this is far too simple! The smart-contract opportunities behind NFTs are vast and using them only to represent graphics is simply a waste of their potential. NFT tokens confirming ownership of graphics are treated by some as works of digital art and by others merely as a tool for speculation.

In the next part of the article, you can find practical examples of NFT usability in the Etheros World.

Stay tuned!