October 31, 2022

NFTs: Why They Matter And How They Impact Web3

What Are NFTs?

A non-fungible token (NFT) is a specialized cryptographic token that represents a unique digital asset that cannot be exchanged for another type. As opposed to cryptocurrencies and utility tokens (like Bitcoin and Ethereum) that are fungible, these tokens are nonfungible. NFTs are created via smart contract technology and are typically classified within the ERC-721 token standard. 

As the name suggests, non-fungibility refers to the fact that a specific asset is distinguishable from another. A non-fungible token (NFT) operates within a blockchain platform and is not interchangeable with any related asset. NFTs are also typically indivisible and cannot be divided or altered in any way.

NFTs can be used as a form of digital ownership over digital assets like artworks or real estate - they can also be used as loyalty points or rewards within games (especially those with virtual economies). 

What is Web 3.0?

Web 3.0 is a decentralized web that uses peer-to-peer networks to store and distribute data and information. It is powered by blockchain technology which adds an extra layer to its privacy and security. Web 3.0 is more dynamic and interactive than previous versions of the web, focusing on user privacy, openness, borderless interoperability, data accessibility, and digital identity.

Web 3.0 allows users to interact with applications without sharing any kind of personal information with service providers, and instead use crypto tokens like USDB to make payments for services or products.

How Will NFTs Impact WEB 3.0?

NFTs are a big part of the Web 3.0 future and are changing how we interact online. Firstly, NFTs allow users of Web 3.0 to own their data. As a result, users can keep their personal information private instead of entrusting it to third parties. In addition, users are able to determine how much information they share with others. Consequently, data and content are completely owned and managed by users and can control how it is used. This is important because it allows users more control over their online experiences by giving them more autonomy than they had before.

In addition, NFTs allow us to conduct financial transactions in Web 3.0 dApps without going through the middleman, i.e., banks or other institutions.

We recently also published two comprehensive articles on How NFTs will change the world -

Wrap up

NFTs have been synonymous with digital art since their inception, but as we have seen in this article, this groundbreaking technology has a lot more to it than meets the eye. While NFTs and blockchain technology are still in their early stages, their application and utility across a number of industries are undeniable, and we may very well look back on these years as the beginning of a radical shift towards a new, more efficient way of conducting business online. We hope you’ve enjoyed this article. Until next time!