Prepared by
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


Priya Bhuiya
Vishwa Desai
Noel Jose
Logeshwaran
• Introduction
of NFT
• Future of NFTs
• Pro's of NFTs
• Con's of NFTs
An NFT is two things. First, it’s a unique digital
asset created and traded via block chain
technology. Second, it’s proof of authenticity.
Thus an NFT is a digital property and evidence
that it’s not fake or counterfeit.
An NFT can be most anything digital, such as
art, images, videos, music, memes, and tweets.
The process of creating NFTs is “minting,”
similar in concept to metal coins that are
minted (stamped) to confirm their legitimacy.
Minting an NFT produces a one-of-a-kind
token on the block chain and an electronic
certificate of authenticity.
Digital assets such as GIF images and MP4 videos are easy
to copy and distribute.
Block chain technology validates both by storing a record
of who created the NFT and each subsequent transaction.
These records cannot be forged because they reside in a
digital ledger on thousands of computers across the
internet.
A hacker may falsify one record on one computer but not
on all the worldwide computers that host the block chain.
“Fungibility” in
economics
means
a
good
is
interchangeable. Examples include commodities, currency,
and common stocks. Thus a non-fungible good is not
interchangeable. It’s unique — one of a kind.
An NFT ticket is issued via a ticketing service that uses
blockchain technology. When the ticket is purchased and
issued, a ‘token’ is written to the blockchain database,
which represents the digital asset, or the ticket in this
case.
This can prevent fake tickets and scams.
Ticketing NFTs gives more control over the resale
market, more secure storage of tickets, and the
opportunity for tickets to be viewed as digital collectibles.
There are now hundreds of games built entirely
around NFTs.
Games like Axie Infinity and Blankos Block Party are
popular with play-to-earn (P2E) models which are
making gamers real money.
There will lot of other gaming project based on P2E
model coming this decade.
With scarcity, transferability, and proof of ownership,
gamers can see their in-game purchases as an
investment with potential for future returns, rather
than just a fun addition to regular gameplay.
A digital twin is a digital copy of a physical product or
asset. Essentially it allows for a digital record of
ownership of physical asset.
Physical items would be linked to a NFT and stored on a
decentralized blockchain that’s near-impossible to
manipulate.
eg.When you buy a pair of shoes, you’d get not only the
shoes, but also the digital twin NFT. The NFT you got is
a verification tool of authenticity and the product history.
Some of the benefits collectors focus on when buying nonfungible digitized artwork include:
1.
•
•
•
Value Growth
As with any other investment, there’s always the potential for
growth in the value of your investment when you buy these tokens.
For example, CryptoPunk #3100 first sold for $2,127 on July 6,
2017. The collector who owned the artwork refused to sell until
March 2021, although whoever it was received plenty of offers.
Nonetheless, that collector is probably doing backflips considering
the more than $7.5 million return on investment they earned when
they sold.
2. Ownership of Something Unique
• These digital collectibles are non-fungible, which essentially
means they’re irreplaceable. There’s a good feeling when you
know you own a one-of-a-kind piece, whether it be a painting,
a piece of furniture, or a digital image, audio clip, or other
digital asset.
3. Excitement
• There’s a ton of excitement centered around blockchain
technology at the moment. Some believe the technology could
lead to as significant a shift in consumer behavior as the
invention of the Internet did.
• That’s an exciting notion, and by purchasing an NFT, you’re
actively taking part in that technological evolution.
NFTs are interesting, there’s no doubt about it. But there are some
serious drawbacks to sinking your money into them. Some of the most
significant drawbacks include:
1. Physical Art Can’t Be Digitized
• The reasons to own physical art and the reasons to own digital art
are often different. You can’t digitize physical art. There’s an allure
to seeing a one-of-a-kind painting with your own eyes that these
tokens simply can’t provide.
2. Uncertain Value
• Even for experts, NFTs are confusing assets. When you purchase one
of these non-fungibles, you’re not necessarily purchasing the
copyright to the art.
• People are still able to find copies on the Internet of the art for
which you own the token, and there’s nothing stopping them from
copying and pasting these files on social media, essentially showing
off and sharing what you may have paid millions of dollars for.
3. Environmental Cost
• The environment is a hot topic of debate as of late. Any record
entered into the Ethereum blockchain takes significant
computing, which requires the use of significant amounts of
energy.
• So, widespread trading in NFTs and other blockchain-based
assets isn’t necessarily an environmentally friendly process.
• In fact, a recent Cambridge University study suggests just
about everything having to do with the blockchain is highly
unsustainable from an environmental standpoint because of
the amount of energy used.
Conclusion
• NFTs can be implemented in various other areas such as
healthcare, Movies & TV shows,fashion industry,gaming
etc.
• The NFT space is fast-changing.
• They are the newset digital asset which is boomed in the
year 2021.
THANK YOU