- Web 3 is the decentralized and most evolved version of the World Wide Web.
- NFTs are assets tokenized by the blockchain.
- Gamers are using NFTs for the exchange of currency.
The NFT is an asset that is tokenized with the help of blockchain technology. It is used for different purposes, starting with exchanges and trading. The NFT minting process is very easy and feasible. Web3 is the most evolved World Wide Web version but it still lacks fundamentals in NFTs.
Web3
Web3 is the most evolved version of the World Wide Web. It is a decentralized, autonomic, anti-censorship, anti-fraud, and highly secured web, unlike Web1 and Web2. It is built on the ideas of openness, data security, etc.; hence, it provides additional advantages to consumers. It is much more disruptive and based on blockchain technology. Through Web3, users can control their own data by utilizing machine learning, artificial intelligence, and blockchain technology.
NFTs (Non-Fungible Tokens)
NFT stands for Non-Fungible Token. These are assets that are tokenized with the help of blockchain technology. These are distinguished from other tokens by their unique identification codes and metadata. Cryptocurrency is also a form of token but the key difference between NFTs and cryptocurrencies is that cryptocurrencies from the same blockchain are interchangeable but two NFTs from the same blockchain, despite being identical, cannot be interchanged.
These can be anything from sports highlights and collectibles like art to computer-generated avatars. The value of NFT depends on its demand from the public. Certain gaming avatars or artwork have sold for millions but lost their value with time after their demand decreased. Hence, not every NFT is appreciable in value. NFTs either have a fixed selling price or there is a need to bid for them in an auction.
The steps to minting NFTs include first deciding the concept of your NFT and then selecting an NFT platform and then connecting a digital wallet to the platform, creating an NFT, and minting the NFT in the form of a unique token on the blockchain.
The best way to increase the reach and demand for NFTs is by promoting them through various channels, including art communities, social media, the NFT marketplace, etc. It is very important to remain transparent about the work.
Risks and challenges include pseudonymity, copyright and intellectual property, cybersecurity threats, smart contract risks, privacy and data protection, environmental impact and regulation.
Gamers Vs NFT
The gaming sector is fusing with other art sectors based on blockchain technology. NFTs are entering the gaming world and many users and active gamers are using NFTs as a source of currency exchange.
Conclusion
NFT is an asset that gets tokenized via blockchain. They can be exchanged and traded for cryptocurrencies. The future of the NFT is very bright in different sectors: art, entertainment, real estate, gaming, etc. The NFTs will be able to operate on multiple blockchains in the future, hopefully. It will be able to create more monetization avenues. But the risks and challenges have to be considered.
