NFT stands to Non-Fungible Token – Non-FungibleMeaning unique and tokenAn NFT is a record of ownership that’s stored on a Blockchain. Put together, an NFT is a record of ownership of a unique item that’s stored on a blockchain. NFTs originated in the realm of generative arts, but they have since been used to record ownership of other digital objects such as music, metaverse, characters and games.
A process called tokenization also allows ownership of tangible items to become encoded in blockchains. This expands NFT uses even further, to include physical goods such as merchandise, real property, and art.
Data stored on blockchains is immutable and transparent – immutable meaning tamper-resistant, and transparent meaning visible and verifiable by all. NFTs are not able to be erased and can also be publicly verified because they exist on the Blockchain. NFTs can be used to secure records and manage ownership rights. The human imagination is the only limit to their potential applications.
The logic behind NFTs – their creation, how they are transferred between people, and their utility – is managed by smart contracts, bits of software that enforce digital agreements and run on decentralized networks like Ethereum. Smart contracts combine transparency and immutability to make NFTs trustworthy, making it easy for individuals to transact without fear of fraud.
Networks of anonymous people can transfer NFTs to and from NFTs, without any central authority or intermediaries. This is because trustlessness works. NFTs are fair to all, and allow for self-management and ownership. This allows people without equal access and freedoms.
Some women from the Middle East and Africa don’t have their passports or birth certificates. It makes travel and citizenship verification difficult. These NFTs could serve as digital passports for women who want to be able to manage their citizenship rights and travel rights. You can also use NFTs to obtain IDs or proof of residency.
Financial services are not available to individuals without documentation. NFTs provide this opportunity by giving the individual control of their documents. NFTs can be used in conjunction with DeFi networks, where individuals offer financial services to one other.
One DeFi platform that’s trying to make financial services more accessible is Konstellation Network, an ecosystem of several products that aim to offer all the benefits of traditional fintech and more. Konstellation Network is a blockchain protocol that’s creating a global infrastructure for the future of decentralized capital markets. Here’s a look at their products:
- DarcMatter This platform allows investors to access tokenized versions (NFT), of alternative investments. These can include art and antiques as well as commodities and derivatives.
- VegaX Digital asset management company that provides investors with access to digital index strategies. This allows them to diversify and invest in multiple cryptocurrencies simultaneously.
- Taebit This DeFi platform focuses on the introduction of cryptocurrencies into the Korean market via ease-of-use and accessibility. It also includes a DEX to facilitate liquidity in the Korean market.
- Photon Gateways These cross-chain bridges allow for the smooth transfer of assets among multiple blockchains. They also open up new investment opportunities.
Squid Squad OG, a Konstellation game featuring NFT holders, is a recent addition. It allows them to compete in high risk, high reward Rock Paper Scissors.
To be eligible to play, players must purchase lottery tickets — the proceeds of which go to a communal prize pool. The Squid Squad OGs will then meet, with the losers being removed. Each time 32 players have been eliminated, the game will go to a vote to decide whether the games should be continued or stopped.
You can now fill out the form to be added to the Squid Squad OG Whitelist.
Conclusion
NFT technology has advanced significantly since its inception with the creation of generative art. NFTs are able to enhance freedoms and open up financial services for all. The Konstellation Network allows users to stake and create stablecoins, receive easy passive income, invest in traditional and alternate markets and move assets among blockchains using DeFi and NFTs.