Why is NFT becoming popular? Is this a new way to invest?
No, the monkey pictures have nothing to do with it. Today we will talk about the technology that underlies them and its real prospects.
All digital assets can carry a contract.
What does this mean? In fact, the whole real world now works using contracts: a movie ticket, a subscription to your favorite music service, a fitness subscription, a lease agreement, and even a high school diploma. Such contracts between people fix the obligations of the parties, or confirm the rights to something.
Contracts can be of three types: oral, written and digital. Progress made a person go from oral to written, as a more reliable way to consolidate data. But today it is becoming obvious that only digital format can provide the proper degree of protection.
The only question is how to give legal force to this type of contract. As we can see from the example of El Salvador, the desire of one person with broad powers is enough for such progress. As we once passed from paper letters to electronic ones, the same fate awaits paper money and paper contracts.
It is impossible not to notice that now the NFT market is experiencing a hype, similar to what we observed in a crypt of 17 years old, with numerous scam-ICOs, whose investors exchanged their BTC and ETH for useless candy wrappers.
Don't trade gold for shells, be smarter.