A misunderstanding about NFTs abounds outside the crypto community – that NFTs are valued so highly for their artistic genius. It is also very confusing for people outside the space. The recent sale of the Bored Ape Yacht Club NFTs for $542 million has left many confused as to what is the fuss behind seemingly simple avatar creations.
However, NFTs are not just something crazy rich people do to spend their money. There are many uses of the NFT technology that are still not explored completely or understood entirely. For example, NFTs open up a way to rent digital gaming assets or even store your DNA. These instances reveal that a very deep understanding of NFTs is still lacking, and people are forming their opinions about it based solely on superficial news and rumors. However, much of it is still at a speculative stage. As the technology matures, more use cases will open and become more mainstream.
The primary difference between an NFT and a digital image is on a very apparent yet elusive level. For example, a normal JPEG file contains only the artwork, an NFT contains rights and underlying information contained in the artwork. A digital image is nothing more than a piece of art that is easily replicable. NFTs, on the other hand, cannot be replicated by definition and design.
In the present scenario of privacy protection and anti-piracy steps, NFTs offer a new way of looking at these aspects. NFTs are not well understood by the average person, but the possibilities it holds are truly endless.