November 5, 2024

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NFTs as a gateway to digital property

NFTs as a gateway to digital property

NFT machine in New York

The use of so-called “non-replaceable tokens” is now beyond the realm of classical cryptography.


(Photo: Reuters)

Frankfurt Nowhere is the proximity between good and bad luck more evident than in the dazzling realm of NFT. Frustrated by fans and investors, investors have invested massive amounts in digital ownership and certificates of authenticity, which are blockchain-based like cryptocurrencies, in a very short time last year: in digital football trading cards, virtual images of artwork, stocks in physical sneakers or real estate for tickets Blockchain-based concerts.

Advantage: Ownership can be proven and assigned in a counterfeit-resistant manner, trading is purely digital.

NFTs, short for non-fungible tokens or “non-fungible tokens,” are digital certificates that represent a digital or physical asset. It can be bought and sold, but it is basically immutable.

So, like some kind of digital title deed, they serve as certificates of title, for example for artworks. They are stored on a blockchain, which is the type of decentralized database that also serves as the basis for digital currencies such as Bitcoin or Ether.

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