Understanding How NFT Is More than Just a JPEG

April 18, 2023May 16, 2024 Avinash Prashar

In today’s digital world, creators face difficulties monetizing their exceptional digital content. With the rise of blockchain technology, a new solution has emerged – Non-Fungible Tokens (NFTs). Although NFTs have been around for a few years, it is still a relatively new concept that needs to be explored.

In this a, we will introduce you to Non-Fungible Tokens (NFT), exploring their benefits to creators, their proof of concept, the potential of Know Your Customer (KYC) by NFT, and other unique use cases.

What are Non-Fungible Tokens (NFTs)?

An NFT is a unique digital asset that is a verifiably scarce, irreplaceable, indivisible, and indivisible token representing ownership of digital content or artwork. Unlike fungible tokens that are interchangeable, non-fungible tokens are unique and carry value based on their individual attributes.

Benefits of NFTs for Creators:

NFTs allow creators to monetize their digital content in a previously challenging way. It offers a new revenue stream, allowing creators to sell their digital assets directly to their audience. The ownership of NFTs is tracked on a blockchain, providing transparency and proof of ownership to the buyer. Additionally, creators can set royalties to receive payments when their NFTs are sold in secondary markets.

Proof of Concept

In 2017, CryptoKitties, a blockchain-based game, demonstrated the power and potential of NFTs. Players could buy, sell, and trade virtual kittens, with some being sold for hundreds of thousands of dollars. This proof of concept showed the world that NFTs could be both desirable and valuable, leading to a boom in NFT marketplaces.

KYC by NFT

One potential unique use case for NFTs is the implementation of Know Your Customer (KYC) procedures. KYC is the process of verifying the identity of clients to reduce the risk of fraudulent activities. With NFTs, creators can require buyers to complete KYC procedures before purchasing their digital content, providing a new layer of security and reducing the risk of fraud.

Other Unique Use Cases

NFTs have the potential to be used in various industries, including gaming, music, sports, and real estate. For example, NFTs can be used in gaming to represent in-game items and assets. NFTs can also be used in music to represent ownership of unique digital tracks, providing more opportunities for artists to monetize their work.

Non-Fungible Tokens (NFTs) provide creators with a new way to monetize their digital content and assets. With the unique features of NFTs, such as transparency, proof of ownership, and indivisibility, it is no surprise that the demand for NFTs is increasing. As blockchain technology continues to advance, NFTs will undoubtedly play a significant role in transforming the digital landscape.How to Get Involved in NFTs with Seracle Web3 Infrastructure

Seracle Web3 Infrastructure can help you get started with NFTs. Here are a few tutorials that might interest you in building and minting your NFTs:

Additionally, Seracle has recently released an NFT API, which will enable you to fetch metadata without relying on the limited toolsets available with web3.js or ethers.js.

And finally, if you need any help, Seracle’s team is available 24/7 on our Telegram channel. We’d love to help you on your journey to becoming a full-fledged blockchain developer.