How NFTs Fit Into the Future of Digital Currency

by Josh Biggs in Blockchain on 24th April 2022

Let’s take a look at NFTs and how they fit into the future of digital currency. If you’ve been looking at NFTs for sale, it might seem like an obvious answer as to how they fit into the future of digital currency. But, let’s take a deeper look into understanding what NFTs are and how they fit into the future of digital currency. 

What are NFTs? 

It can be a daunting task thinking about NFTs. There are so many kinds of NFTs that include profile pictures (PFPs) to sports memorabilia and exclusive event tickets. One of the most important questions that you might consider when you’re looking to purchase an NFT is what kind of investment are you looking to make? But first, let’s look at what NFTs are. 

NFTs are non-fungible tokens, or digital tokens that represent ownership of an item. Because NFTs exist on blockchain technology, a virtual ledger of transactions. As such, an NFT cannot simply be copied and pasted. The blockchain ledger shows that you are the owner of an NFT, and that transaction history not only proves authenticity, but makes sure that NFTs are unique items. 

The Future is Digital

In many ways, the future is digital. There are worlds being opened up in digital spaces, and you have an opportunity to be part of that. There are already so many ways in which the digital and the real-world are blending, with holographic concerts and NFT event tickets granting VIP access to in-person events. Not only that but artists and museums of all kinds are minting NFTs that contain real-world implications like exclusive access to content. 

So where does that put NFTs into all of this? Well, NFTs are already fitting into the future of digital currency seamlessly. In a more expanded digital realm that, for example, accepted Ethereum (ETH) more broadly, an NFT could be traded for a ticket. The acquisition of NFTs would mean that, if the market on- and offline expands, that NFTs could additionally be used in ways that cryptocurrency already is being accepted. 

Digital Wallets in the Future

A digital wallet is a secure place where you can store your cryptocurrencies and digital assets, including NFTs. There are two types of digital wallets that you need to be familiar with in order to make the most informed and secure decision as to how to store your virtual property. 

There is an online digital wallet that functions much like a browser extension which allows you to store your currencies and NFTs in one place, while also allowing them to be easily accessible in case you want to use them at any point. 

There are more secure versions of digital wallets, and they function much like an offline hard drive. Known as cold storage, these digital wallets are not connected to the internet and virtually cannot be accessed or hacked because they are offline, and need to be plugged into the computer to be accessed

NFT Marketplaces Moving Forward

There are so many NFTs for sale, it can be difficult to discern which are the “right” ones to buy. When it comes down to it, the wide array of NFT marketplaces offer so many options for both artists and buyers. Current NFT marketplaces offer a variety of minted NFTs, ranging virtually every topic and genre. There are wider, open markets like OpenSea, and more exclusive curated markets like Foundation and SuperRare. 

What might NFT marketplaces look like in the future? With more marketplaces cropping up almost daily, it begs the question at what point the digital is going to intersect more concretely with the real-world. Some stores are already accepting cryptocurrency as a form of payment, so what would it look like if more did? What if you could pay for your next car with the NFT you bought a few years ago that had tripled in value? Though these may seem like far-fetched ideas, the sky really is the limit when it comes to the future of NFTs.

To the Future

When it comes down to it, the future is in NFTs. Digital currency is here to stay, and there’s no question about that. Whether you’re interested in learning more about blockchain technology, are committed to investing in digital worlds, or are an avid art collector, there will always be a place for NFTs. 

The most important thing to consider when venturing to buy an NFT is how you want your digital asset to manifest and grow. Do you want to own a piece of digital land that you can build on? Are you interested in building a community with like-minded buyers? Whatever your motivation for investing in cryptocurrency or purchasing NFTs, be sure to do your research thoroughly and invest in projects you believe in. 

Categories: Blockchain