NFTs: The Future of Investments

W Nived Rajeev  |   6 mins read February 24, 2022 | 16 | 176 eye icon

In this modern era, we are advancing at a rapid rate in terms of technology. This advancement essentially helps in making our lives and careers more secure and easier. UPI transactions and Blockchain Technology have made the finance and business sectors stronger and safer. Among the vast array of technological innovations is a certain system that has gained popularity recently and proven to be a solid contender for the future of digital financing. That system is called NFTs or “Non-Fungible Tokens”. 

One might ask how NFTs are reshaping and helping our economy. Worry not, we are here to explain everything you need to know about NFTs. However, before we get down to discussing NFTs, we need to understand its parent technology, which is the Blockchain. 

What is Blockchain Technology?

In simple terms, Blockchain is an online database. Databases store, well, data in them. However, in the case of Blockchain, the data which is stored cannot be altered by any means. Additionally, even though it is a digital entity, it is impossible to hack or cheat the system. How is that so? Think of it as a ledger, which is a book or a collection of financial details. This digital ledger exists inside entire networks in a huge system of computers. Meaning it exists, duplicates, and distributes itself across this humongous system. 

If you were to even try to hack or cheat the system, you would have to change the data on each and every computer in this system. Yes, that’s right, it is impossible to manipulate the Blockchain. This special quality shows its transparency and safety when dealing with finance. Users can easily verify their Blockchain content without any risks. Don Tapscott, CEO of Tapscott Group, once explained in an interview that Blockchain Technology basically uses a “trust protocol”, which is peer-to-peer, and transactions or processes wouldn’t require the involvement of powerful banks or credit card companies. 

Cryptocurrencies, like Etherium, Bitcoin, Litecoin, and many others, are based on Blockchain technology. These cryptocurrencies use Blockchain technology along with cryptography in order to make themselves safe and reliable digital currencies. 

What exactly are NFTs?
Let us address the concept of NFTs through a comparison. NFTs and cryptocurrencies use the Blockchain system to exist and to function. However, cryptocurrencies like Bitcoin, are fungible, meaning that if you trade a Bitcoin for another, you’ll receive the exact same thing. NFTs, as its name suggests, are non-fungible. 

Moving on to the concept of NFTs itself, they are essentially data that is stored on a blockchain, which is a public ledger. The data is non-interchangeable and therefore, it cannot be manipulated or tampered with. This data on the blockchain is then used to tokenize things like art, real estate, and collectibles. Meaning, the artwork or collectible represents that specific data on the blockchain. 

Just like an artist’s work, each NFT is also unique. The existence of an object that is linked to specific data on a blockchain makes it one of a kind piece. NFTs are mostly held on the Ethereum Blockchain, but other blockchains also support NFTs. Let's take a look at one of the most popular NFTs in the world, “Save Thousands of Lives” by Noora Health Organisation:

This NFT was sold for 1337 ETH (USD 3.66 million in 2022), and the proceeds were allocated towards the organization’s program aimed at saving the lives of newborns in the South Asia region. This piece of art is now worth 1337 ETH on the blockchain, and the transactional history is visible on the blockchain. If the owner decides to sell it for a higher or lower price, the new transaction will appear in the blockchain. And no, the older transaction history does not get erased. Blockchain preserves all the transaction details. 

What significance do NFTs have in the business world? 

As of 2022, NFTs are thriving in the business marketplace. The transparency that NFTs bring is just one of the major reasons why it is popular. NFTs encourage creativity and self-expression. Since the creative works are backed by the feature of exclusivity and uniqueness, NFTs capitalize on the aspect of scarcity. Creativity and scarcity are used in combination in the field of brand recognition. Using this way, NFTs are popularised through boosting brand recognition and consumer loyalty. 

Popular brands use NFTs as a way to advertise the uniqueness of their product. Nike’s special edition ‘Flying Formation’ Air Max 1 shoe was announced to come with NFTs. The shoe as well as the NFT will be put up for auction with the price starting at 12.5 ETH. This promotes the product and the concept of owning a unique and one-of-a-kind object. 

Apart from branding, marketplaces have sprung up around NFTs linked with collectibles. Avid collectors of sports, games, or events try to get their hands on collectibles that are linked with their topic of interest. This in combination with the Blockchain, makes sure that there are no counterfeits. If a counterfeit is being circulated in the market, users can easily distinguish it from the real deal by just verifying its blockchain data. 

Why should you study the Blockchain and NFTs?

Blockchain Technology and NFTs are taking the market by storm. It has more scope related to business, marketing, branding, and sales. The aforementioned details and aspects of NFTs and the Blockchain make it undeniably secure and technologically advanced. Capitalizing on its popularity and ease of use can help entrepreneurs kickstart their ventures. Companies can use the technology to gather information on the market as well as financial support. Apart from companies and businesses using it, NFTs are a great investment opportunity as they are more versatile than cryptocurrencies and do not get affected by price fluctuations. 

Starting to learn about NFTs and Blockchain technology might not be an easy task generally. Athena Global Education, an online higher education learning platform, has realized the significance of this growing technology and the number of people keen to learn it. UniAthena has different courses that range in duration and content. It has a Basics, Essentials, Mastering, and Diploma course, all related to Blockchain. The Essentials and Diploma courses focus more on the application of NFTs in the field, providing you with the knowledge required to get a headstart in the NFT industry. 

Learners get a certificate on completion of any of these short courses.  UniAthena has a flexible learning schedule as the lessons consist of pre-recorded videos and the short courses themselves are free of cost. It does not matter if you are a beginner or a working professional, these specialised courses will endow you with skills that are in high demand at the workplace. Take a look at the curated short courses from UniAthena. 




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