Explaining the Basics of NFTs! A Future Where Digital Data Becomes an Asset

In March 2021, digital artist Beeple's NFT artwork "Everydays - The First 5000 Days" sold at Christie's for about $69 million. Twitter co-founder and CEO Jack Dorsey's first tweet, turned into an NFT, sold for about 316 million yen.

So what is the NFT token that turns digital data into an asset? This article covers the basics of NFTs through real use cases. Read on if you're interested in NFTs.

1. What Is an NFT

NFT (Non-Fungible Token) literally means "non-substitutable" - each one is unique and one-of-a-kind. A token can mean a substitute currency or a voucher, but an NFT refers to a token used to trade a one-of-a-kind digital asset.

1.1. How It Works

Token trading relies on blockchain, so past transaction history can't be deleted, and data can't be tampered with. This mechanism lets digital data be turned into assets and traded.

Since users can now share transaction history, it's possible to track who created and who bought a given piece of NFT art. This has made trading digital art much easier.

1.2. Advantages

Because NFTs are traded using blockchain, they offer the following advantages.

• Guarantees "uniqueness" and "scarcity," which digital assets couldn't previously guarantee
• Anyone can now sell digital assets over the internet
• Since NFT token value keeps rising, owning one can serve as asset management

1.3. Disadvantages

NFTs also come with the following disadvantages.

• Regulations are still underdeveloped, so caution is needed when trading digital assets with NFTs
• As NFT traders grow in number, fees may rise sharply
• Token prices fluctuate, so value could drop significantly

1.4. Future Potential of NFTs

In 2021, media coverage of high-value NFT trades spread awareness rapidly. According to a study by U.S. research firm Emergen Research, the NFT market reached $340 million in 2020 with a fast compound annual growth rate, and is projected to grow to $357.3163 billion by 2030 - a sign of strong future potential.

2. Use Cases

NFTs pair well with IP businesses such as characters and licensed content, and with content businesses like digital art and copyrighted works.

In the future, NFTs are expected to be used not only for buying and selling original content, but also for resale and rights transactions, as well as trading characters raised in games.

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3. For NFT Trading Service Development, Choose "Miichisoft"

If you're considering a blockchain or NFT trading service, feel free to consult "Miichisoft." Here's a brief look at Miichisoft's strengths as a high-quality offshore development provider.

3.1. Gathering and Researching the Latest Information

Miichisoft always keeps customer satisfaction in mind and continuously researches the latest information. In recent years, we've been researching NFT trading service development and blockchain development, both drawing a lot of attention. We have a dedicated in-house blockchain team, so cryptocurrency and blockchain are areas we can support. If you're considering a new business built around NFT tokens, feel free to reach out.

3.2. Advanced Technical Skills Recognized with the Sao Khue Award

According to Vietnam's information and communications industry, total revenue for the sector in fiscal year 2019 was 12.23 trillion yen. As the Vietnamese government places strong emphasis on IT education, the country has many talented engineers. Against this backdrop, in April 2021 Miichisoft received the Sao Khue Award as an offshore development company that has contributed to the growth of Vietnam's IT industry, with our advanced technical capabilities recognized by the Vietnam Software and IT Services Association.

3.3. Solving Japan's System Development Challenges

Miichisoft is a system development company founded on the desire to help people through system development, launched by engineers who had studied and worked in Japan. We want to solve Japan's engineer shortage and rising labor costs through offshore development. We have bridge engineers fluent in Japanese on staff, so you can reach out without worrying about communication issues. If you're struggling with talent shortages or rising costs in system development, please rely on us.

4. Conclusion

Digital assets built on NFTs are drawing significant attention, and the market is rapidly expanding. Launching a new business around tokens and blockchain can be a great opportunity. Miichisoft also supports system development that leverages tokens and blockchain, so if you're considering a business built around NFTs or blockchain, please feel free to reach out.