Non-fungible tokens (NFTs) are a digital representation of an asset. They are often used as a tool for ownership and identity verification in the blockchain ecosystem. NFTs can also be used to represent physical assets, such as collectibles, artworks, or even shoes. In recent years, NFTs have gained traction among non-traditional investors and blockchain enthusiasts. This is due in large part to their unique attributes: they are more scarce than fungible assets like fiat currencies and stocks, which makes them enticing investments for those who prefer something unique and one-of-a-kind. The use cases for NFTs extend far beyond investment vehicles and into the realms of art collecting, gaming economies, virtual land ownership, and more. One example is Next Earth, which recently ran the world’s first Initial Tile Offering, selling over $1.3 million of virtual real estate NFTs. In the future, Next Earth plans to release “pixel art” features that let users not only buy one-of-a-kind virtual land, but create land art on it as well. Collectibles featuring rare skins or other digital enhancements have become increasingly popular as well. Why NFTs Are Needed One of the main reasons NFTs are gaining traction is because people want to prove ownership digitally. For example, a digital artist or game developer may choose to release their work as an NFT, in order to show proof of ownership and prevent people from pirating the work. In oth...
