In recent times, the idea of digital tokens, blockchain, and cryptocurrency has been in focus for many many eyes around the world, especially in India. From common man to celebrities, everyone talking about digital tokens, digital money, etc. Among them, NFTs or Non-Fungible Tokens also getting much importance. NFTs are digital assets based on Blockchain technology and traded through the use of cryptocurrency. The technology uses a DLT system that allows secure trading with immutability.
Blockchain technology is a distributed ledger technology that supports crypto functions and allows trading in them. NFT being a digital asset use this for secure transactions and trade with proper encryption messages.
Moreover, NFTs are not digital currencies but digital assets and are useful to exchange by using cryptos. They are traded through digital platforms to facilitate users buying and selling NFTs. The blockchain behind all these systems works to secure them from outside threats.
Therefore, blockchain technology has a great future and of course, it is called a future technology. Most business entities including the government are planning to adopt this technology to improve the monetary transactions with security. This will enhance the growth of the economy digitally and make it more transparent.
Future of blockchain technology
It is expected that by the year 2030, around 30% of the global customer base will use blockchain as a primary technology. Also, blockchain will add more value to businesses that will grow by more than $170 bn by 2025. These stats are enough to say that blockchain will lead the future business market.
Not only the business area, but it will also impact the government institutions that deal largely with monetary activities. It will help to secure the deals and transactions with cryptography techniques and no one alter the data.
Similarly, cryptocurrency transactions are also visible and accessible to track but no one can modify the data. Therefore, blockchain technology is much closer to the next-gen people.
NFT market also has the potential to trade digitally, collect and transfer ownership to traders across the globe. The process continues to grow towards the digital landscape laid by the technology. Moreover, there is hope for the development and demand in the marketplace to continue to grow for the NFTs.
It seems that trading & investing in NFTs will become similar to the investing we do in stock markets.
Further, NFTs are subject to scrutiny for their security at different stages due to their digital asset status. But NFTs are in the safe hands of blockchain that secures through its digital ledger and keeps their uniqueness.
Once the investors start understanding the nature of NFT’s work and their concept of functionality, the problem will get some sort of solution.
People can do NFT trading through various digital platforms available and also buyers can hold it for the long term and wait for the value to increase.
Hence, blockchain ensures the continuous records of each and every NFT transaction.
NFTs working strategy
NFTs are non-fungible tokens and digital assets that are based on blockchain technology. They represent real-world assets like artwork, gaming, collectibles, and many more. Due to their uniqueness, they have single ownership at a time. Every trade, investment, or transaction passes through online verification and authentication. Therefore, it is highly secure and transparent.
For the trade or exchange, you do through NFTs there is no physical value available. But you will get a certificate of ownership instead of any physical value of NFT. This is a great advantage here and no one alters any data. Moreover, you need to keep the certificate digitally safe for further usage.
NFTs are useful in buying online event tickets, gaming, fashion, and many more. They also follow certain rules and regulations laid for smart contracts for trading and exchange.
However, NFTs are not still legally valid in India but soon we can hear about the imposition of necessary regulations about them. It will boost the enthusiasts to actively trade in NFTs.
All these functions follow blockchain and it is the ultimate technology that runs behind NFT.
NFTs future in India
NFTs or Non-fungible Tokens will definitely have a great future in the country with the developing laws and regulations. As far as we know that blockchain offers much faster and cheaper cost-effective transactions across the globe.
The trust in this technology increases gradually and people started to know its importance. The future business world is going to grow with blockchain only as it is very cost-effective.
NFTs, a digital asset that impacted many people including celebrities to launch their own NFT collection in recent times. This impact says that we can soon start trading through NFTs and get more valuable insights.
Thus, the NFT community will get a speedy momentum upon the Indian government to place the rules for its validity.
Monetization of digital assets will take place and it will add more advantages to the marketplace players. Also, the digital economy will boost up with the new entrants in the market for NFT and other digital assets
Views expressed above are the author’s own.