Founder of the second highest coin based on market cap, Vitalik Buterin had a say on Non-Fungible tokens (NFTs), his opinion on owning these NFTs. He explained how NFTs could put a new phase to solving issues of ownership, making it very decentralized.
The concept of NFTs has been mistaken and used wrongly as the actual meaning has been given a completely different concept from what it actually is. NFTs are a non-interchangeable unit of ‘data’ (Jpegs, properties, etc.); and then store ownership details on the blockchain. This, therefore, portrays decentralization as no organization has any control over one NFT.
This, therefore, means that a non-fungible token could be an image, audio, a video even a screenshot of a tweet, all saved digitally and especially identifiable. NFTs are not blockchain cryptocurrencies but can perform their functions of them. Like cryptocurrencies, NFTs store value if demanded commonly and can be used for transactions.
He explained the importance and intrinsic value these NFTs can maintain for a long time since proof of ownership is registered on the blockchain and cannot be changed. The game world of Warcraft portrayed the ideas of Non-Fungible Tokens as the game featured items that possessed clearly defined value to which players of the game were specifically entitled too.
The world of Warcraft is an online playing game that hosts thousands of players in the game space, all competing for these invaluable rarities and then claiming complete ownership. Ethereum founder was a huge fan of the concept and the game itself. He also made comments about NFTs and said they were closely related to the items in the game.
Vitalik On NFT Transactions
He also commented that NFTs were a great way for amassing and storing wealth. He said that the JPEGs could be used invariably in making exchanges and making payments. Ethereum founder Vitalik also mentioned that the concept of NFTs could be used for so much more than storing wealth, having proof of ownership, and the like. He cited an example of how NFTs can be used for so many good causes as providing helpful resources for a charity foundation if some special NFT collection could be made solely for that cause and the revenue generated from the sales of the NFTs in the collection could be used in funding these foundations.
Other Use Of NFTS
Other than using Non-Fungible Tokens for revenue generation and as a means of exchange, Buterin suggested that NFTs can also be used as proof of participation. He made mention of POAP, meaning ‘proof of attendance protocol’, which is a way of rewarding users who actively participates in any form of event and receive tokens (POAPS) for their participation.
Similar to the concept of ‘soul bound items’ in the World of Warcraft, POAPS also performs this function; to tell if you participated in the listed event or not. Although the whole meaning of NFTs has not fully been grasped, many people are venturing into the concept to make profitable gains.