The Non-Financial Transactions Market Requires Democratization — and Fractionalization
Over the last few months, the popularity of NFTs has skyrocketed. There are tens of thousands of publications on the various interesting aspects of these non-fungible tokens if you Google “NFTs,” and keeping up with them all can be overwhelming. However, there are several facets of this concept. But first, a little refresher on NFTs is in order.
The latest hype in the crypto world: NFTs
Digital artworks are being sold for millions of dollars, and collectors and ordinary people alike are obsessing over this new craze that is NFTs.
And what’s even more amazing is that even if you spend millions of dollars, you won’t get a real copy of the artwork, much alone a print or anything like. You will be given a one-of-a-kind token. This token, unlike cryptocurrencies like Bitcoin and Ethereum, will not be fungible. This means that no two tokens will be equal (this is not how currencies, such as BTC and ETH, or any other, work).
Despite the fact that the expansion in the NFT markets has been nothing short of remarkable, it is critical to remember that the market is still young and taking small steps.
As a market that has not yet reached maturity, it has its own set of obstacles and uncertainty. There is still a lot of room for innovation, whether it’s in terms of technical know-how, fundamental infrastructure, user interface, or general accessibility.
In the future, the NFT market will expand beyond artworks to include a wider range of digital goods. As a result, democratization is a critical concept that the market must not only accept, but embrace. NFTs have clearly democratized digital artworks, allowing many more artists to sell their work around the world. However, the scope of this is limited.
NFTs have a number of advantages, including safe and documented ownership, faster payments and settlements, and royalty payments via smart contracts. However, an increasing number of NFTs are becoming to resemble the real art world in that they are pricey and beyond of reach of the general public, discouraging future participation.
Furthermore, there have been several incidents of art theft in the NFT realm, when people steal other people’s artworks from various platforms and sell them for substantially higher sums as an NFT.