EVOLUTION OF BLOCKCHAIN: VELAS AND NFTs
Non-fungible Tokens (NFTs) are as opposed to the traditional cryptocurrencies, are tokens which even if they are alike, look alike are unique in their uniqueness and not exchangeable or replaceable. Cryptocurrencies like bitcoin, Ethereum, Ripple and Velas are all fungible. Having a currency like the Nigerian Naira (NGN) means if I have a 1000NGN note I could easily exchange them with another 1000NGN note or even two 500NGN notes without compromising in value. This also applies to all other fiat currencies like the South African Rand, Egyptian Pounds or even the Ghanaian Cedi's and so on. But what happens if I own a ticket to watch the latest Fast and Furious 9 and you another have a ticket to watch another movie in the same Cinema all showing at the same time. I believe our preferences will be tailored to which movie we prefer and we may not easily exchange these two tickets without having a second though over compromise on value.
So the idea of NFTs is to create an ecosystem of digital assets that represent a unique asset that is not exchangeable. The year 2021 came with a boom in NFT projects especially digital artworks on the Ethereum blockchain, and other competing ecosystems like the Binance Smart chain. Velas as an ecosystem built for decentralized finance isn’t left behind, but what other aspects of NFTs are unexplored, that’s where we will delve into in this article;
· Art:
Art is the first aspect I’d like to talk about, digital artwork has recently seen a boom especially on the Ethereum blockchain just a recently a digital art for a whooping $69 Million in ETH tokens at an auction.
· Asset Tokenization and Democratization:
Assets too large to be moved or sold as a whole could easily be tokenized and sold without having to move the asset. Assets too big to be sold as a whole could easily tokenized so that owning an NFT will represent owning only a part of that asset, for example I could buy an asset that would represent owning the pool in a mansion or an apartment in a suite.
· Licenses and Certifications:
Have you ever thought what if I could keep my credentials and certificates without the fear of loosing them or them being destroyed, well guess what? With NFTs you can easily mint and keep your certificates and licenses digitally and secure with your private keys. Even governments could adopt this method to issue IDs and licenses to citizens of its country or state.
· Collectibles:
Collectibles were more or less the first contact people had with NFTs, cryptokitties that came about in 2017, having a kitty gave you complete ownership and people could breed two kitties to get another type of cryptokitty. As they were in different fur type, color and eye color each cryptokitty had a more appealing characteristics than the other making people collect them as collectibles.
· Others:
NFTs can be applicable in a myriad of life scenarios, including Fashion and Sports and a lot of other fields yet to be explored.
Blockchain is the future of technology and NFTs is just one aspect yet to be explored. I’m very optimistic that with Velas we will be seeing a lot of areas of blockchain that hasn’t been seen or touched yet.
In conclusion, NFTs define the future of art, collectibles, assets democratization and even decentralized governments. And Velas I must say is in the spotlight to make sure we take this journey together.
