NFT is an abbreviation for Non-Fungible Token. NFTs are digital objects that represent both tangible and intangible items in the physical world.
Do you have any valuable asset such as a piece of art, house, land, furniture, an equipment, etc.? Do you know that it can be transformed into an NFT to generate income for you?
The process of transforming an asset (whether tangible or intangible) into an NFT is what is now commonly referred to as tokenization. Just as there was a rush of moving personal and business presence online in the late 1990s to early 2000s, there is an intensifying interest of tokenizing personal and business assets.
The Global NFT Market
The global NFT market is now valued at about 20 billion US Dollars. This is just scratching the surface. In fact, the market is expected to reach a minimum of 212 billion US Dollars by 2030, growing at a compound annual growth rate (CAGR) of 33.7% in the forecast period (2023-2030).
Such impressive growth is because NFTs have widespread applications, many which have not yet been tapped.
Benefits of Non-Fungible Tokenization
A number of benefits are seen with non-fungible tokenization of assets; the most obvious ones are:
(1). Additional Financial Value
By tokenizing your asset, you have produced a blockchain asset from an existing (parent) asset. An asset is an item with some financial value, hence, tokenization gives additional financial value.
Never underrate this fact. The truth is that a blockchain asset may even have a far bigger financial value than its parent asset because a blockchain asset is tradeable. Where a parent asset may not be easily traded, a blockchain asset can readily be sold across markets.
For instance, though a piece of beautiful furniture in your house may not easily be traded, yet a tokenized version of it can readily be sold on a marketplace such as EdaFace NFT Marketplace.
(2). Increased Exposure
Where a parent asset may not reach, its tokenized version may penetrate. This is because a tokenized asset enjoys the inherent benefits of a blockchain, which include a cross-border penetration.
For example, a valuable piece of land is an immovable property, but when tokenized, its blockchain tokenized version can be purchased from anywhere in the world. This gives the parent asset a wider publicity.
Indeed, businesses can enjoy increased exposure using blockchain tokenization strategy.
(3). Authentication and Preservation
One of the worst fears of creators like artists and inventors is plagiarism. When you tokenize your product via blockchain, the product is authenticated and cannot be plagiarized. In addition, blockchain products are immortalized, hence, will always exist.
In other words, tokenization authenticates and preserves an asset. Indeed, some institutions, businesses and individuals have started applying these traits in Licensing and Certification, control of counterfeit tickets, corruption prevention, preservation of family legacy, etc.
(4). Entertainment
Entertainment is by far the most commonly applied functionality of NFTs presently. NFTs are featuring strongly in the entertainment industry, especially in games. This is increasing the value of the industry.
For instance, the global movies and entertainment market was valued at 80.98 billion US Dollars in 2016 and grew to 91.83 billion US Dollars in 2020.
This market is expected to grow at a compound annual growth rate of 4.1% to reach 114.93 billion US Dollars by 2025, thanks to technologies like metaverse, which utilizes Augmented Reality (AR) and Virtual Reality (VR) that are powered by blockchain NFTs. In fact, with the rise of NFTs, this growth rate may be far exceeded.
Who Can Benefit from NFTs?
Considering the massive potentials of the NFT industry, a large of number of persons, companies, and various institutions are asking how they can tokenize their assets.
The good news is that anyone can generate passive income from NFTs. The following are examples of people that have made some money selling NFTs:
- Lionel Messi, the soccer icon, made more than 3 million dollars from his NFT sale
- Nyla Hayes, a 13-year-old girl, made about 7 million dollars
- Nelson Mandela Foundation raised about 2 million dollars in May 2023 selling Mandela’s NFTs.
And the list goes on and on.
You Too Can Make Money from NFTs
Indeed, anybody, including you, can make money from NFTs. Watch out for the next part of this article that will show how you can achieve this in this rapidly growing industry.
Article by:
EdaFace Team.
(Visit the newly launched EdaFace NFT Marketplace… https://nft.edaface.com/ …which has introduced new technologies in the NFT industry).
