NFTs – What Are They And How They Are Shaping The Future?

The post NFTs – What Are They And How They Are Shaping The Future? appeared first on Coinpedia Fintech News

If have been keeping tabs on the tech industry recently, you’re probably used to hearing terms such as cryptocurrencies, Bitcoin, blockchain, and most recently, NFTs. However, the latter often causes confusion. Many people are left asking what NFTs are and how do they work exactly? 

NFTs or non-fungible tokens are cryptographic assets much like cryptocurrencies that live on a Web3 blockchain. However, they differ from cryptos as every asset is unique. This asset can be anything from digital files and jpegs to real estate and even videos. Blockchain technology, which provides a traceable record of ownership, backs this type of token. 

Non-fungible tokens are becoming more popular. We often see them used in video games, such as those that sell digital collectibles. In this scenario, a player can earn non-duplicable in-game assets, trade them, and potentially make a profit. 

What are the Advantages of Web3?

Web3 is the next generation of the internet. The new technology uses machine learning, semantic web, and blockchain technology to create a decentralised internet. Instead of centralised websites, Web3 focuses on interactive websites that use artificial intelligence (AI) and machine learning to interpret context. 

It makes the world more accessible and decentralised. Its encryption protects the user’s information from unauthorised use. The Web3 will also allow users to control how their information is shared, including with researchers and marketers.

Essentially, Web3 technology will allow a virtual world to exist online. It can also be used in the education industry. For example, a person can take part in a virtual classroom where they can interact with teachers and fellow students. They can even make purchases using virtual goods. As mentioned, Web3 also enables people to earn crypto and build their own collection of NFTs.

Username3 – One of the Great Examples of NFTs

As the NFT industry grows, it is difficult to stand out from the crowd. The good news is that there are several examples of NFTs that broke new ground and helped to create hype and anticipation for new releases. 

One recent example is Username3, a Web3 platform built on the Solana blockchain. It allows you to own a profile (which is also an NFT) and use it to create a decentralised social media link tree. The platform helps negate a common limitation with social media platforms. Many social media platforms, including TikTok and YouTube, only allow you to share a single link on your profile. That means having to choose which of your social media accounts to share. However, with a Username3 profile, you can place as many links as you like. You then just link to your Username3 on your social media profiles. Anyone that views your social media profiles is then just a single click away from seeing all your social media links.

As your Username3 profile is an NFT, you own it and can sell it if you choose to. Plus, your profile will earn you cryptocurrency when clicks on your profile lead to other people minting a Username3 profile. On top of that is a 10-level referral program with increasing benefits for the most viewed profiles. 50% of primary sales at Username3 are put back into the community via that referral program that pays in Solana rewards. If you are new to Solana, then can learn more about the Solana blockchain ecosystem and crypto as it is a well-known cryptocurrency. Find out what is next for Solana here.

The Takeaway

While NFTs and Web3 are far from the finished article, it is clear that this is where the future lies. The most adopted aspects of Web3 revolve around the trading and investing of cryptocurrencies and NFTs. However, that is just scratching the surface of the potential of Web3. There is still so much room for the technology to grow into and it is going to be exciting watching this technology develop. As for NFTs, these have mostly been tied to artwork and images. The possibilities are endless, however. As this technology evolves, we are sure we will see further use cases for NFTs as new and innovative applications are developed. 

Disclaimer: This is a guest post. Coinpedia does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company.