NON-FUNGIBLE TOKENS (NFTS) & OWNERSHIP OF DIGITAL ASSETS

Since the beginning of 2021, the NFT markets have experienced significant expansion, attracting unprecedented attention to this space.  When it comes to NFTs, though, many individuals consider them to be nothing more than Digital Art, there are, however, other applications of NFTs that are unrelated to art. In this article, we’ll take a quick look at what NFTs are and how they might be used in different ways, with a focus on domain names.

What Are Non-Fungible Tokens? (NFTs)

Non-fungible tokens, or NFTs, are cryptographic tokens that reside on the blockchain and are similar to cryptocurrencies. However, unlike cryptocurrencies, NFTs are one-of-a-kind and so cannot be exchanged, which is why they are referred to as non-fungible.

Today, there are various NFTs available and every day, new sets of use cases emerge. Anything that is registered on the blockchain as a means of proving ownership and authentication will generate an NFT that symbolizes the original’s ownership.

What Exactly Are NFT Domains Names?

NFT domain names are a fascinating application of blockchain technology.

It’s essentially a blockchain-based domain. Alternatively, they combine the ease of trading NFTs with the flexibility of blockchain-based domain names. Private keys provide domain owners with complete control over their domain. In contrast to standard DNS, which is controlled by a third party, this DNS is managed by the user.

There are two applications for NFT domains.

  1. Creating understandable names from hexadecimal data
  2. It makes it possible to create websites that are unaffected by censorship.

You may purchase, trade, or rent blockchain domains and even an entire domain namespace on marketplaces.

For example, the owner of a given domain on a blockchain may decide to rent or sell that domain later. This presents a fantastic opportunity for early who are already profiting from the new expanding industry.

References

[1] https://www.deltecbank.com/2021/08/25/what-are-nfts/

[2]  “WTF Is an NFT, Anyway? And Should I Care?”. Wired. ISSN 1059-1028. Retrieved 2021-03-13.

[3] Thaddeus-Johns, Josie (2021-03-11). “What Are NFTs, ISSN 0362-4331. Retrieved 2021-04-14.

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