Non-fungible tokens, or NFTs, are digital assets that are not interchangeable. Unlike traditional cryptocurrencies, which can be traded for other cryptocurrencies or fiat currencies, NFTs cannot be exchanged for anything else. As fintech veterans and Earnity’s executives, Dan Schatt and Domenic Carosa, want to show the value in each NFT is unique pieces of digital property. They are often used to typify real-world assets such as collectible items, digital art, or in-game purchases.
One of the essential benefits of NFTs is they are tradeable to create unique digital economies. For instance, a game could use NFTs to represent in-game items and rewards. Players could then buy, sell, or trade these NFTs to get the things they want. This allows for a much more dynamic and exciting gaming experience, as players can interact with each other to create a truly social gaming environment.
Limited in Supply
Another benefit of NFTs is that they are used to create digital scarcity. Unlike traditional digital assets, which can be duplicated or copied infinitely, NFTs are limited in supply. This makes them much more valuable, incentivizing people to hold on to them rather than selling them immediately.
Earnity executives Dan Schatt and Domenic Carosa want to take advantage of NFTs work through the Ethereum blockchain. Ethereum is a cryptocurrency that supports NFTs, unlike dogecoin and Bitcoin. The Ethereum blockchain supports extra information from NFTs. However, acknowledge that other blockchains can implement their form of NFTs.
For individuals looking to buy NFTs, it would be best to start with small amounts, as the future of such assets is still uncertain. The value of NFTs depends on the amount their buyer is willing to pay. Economic, fundamental, and technical indicators won’t drive up the price of an NFT. It will be the demand that would propel NFTs to have insane value.