Why NFT’s and Blockchain are the future. What markets does blockchain decentralize and why is it important? What does that mean for you? Let’s pull everyone together for a general understanding.
Childhood memories of opening new trading cards, buying a new comic book or buying signed memorabilia. How do these relate? They are all tied together via the thrill of adding an item to your collection and showing off. Present time the structure of going to a store and physically handling these items are increasingly becoming obsolete.Do not worry, just because something is becoming outdated doesn’t mean it’s irrelevant.
Irrelevancy just means there is room for change, and a disruptive business model can find a home. This is where a trading card, comic book, memorabilia, etc.; get pressed into a new way of existing. All of this is shadowed by the bigger idea behind it, and it is decentralization. Marian Webster describes decentralization as “the dispersion or distribution of functions and powers” this idea underlines the basis of the NFT. This doesn’t mean that NFT’s are unconnected, but just a stepping stool to experimenting with decentralized data bases. Time, past to present, a small number of entities (banks, insurance, logistics and more) have monopolized markets and industries. The ideology of a centralized data structure works but doesn’t necessarily support industries continuing forward. Technology is always updating and therefore there is a need for a more efficient way of collecting and storing data. This is done through a decentralized community of peer-to-peer evaluation. One of the biggest draw backs to centralized entities is that they are easily targeted; a hunter and prey situation appears. Let’s derive inspiration from nature for e.g., a school of fish. Fish group together by the thousands to discourage hunters such as sharks, dolphins, and any other hungry predators. Grouping makes it very difficult to choose a point of attack; thus, blockchain makes its debut. Blockchain is a decentralized data base that is carried by everyone’s computer, if any computer is hacked the others can regroup and amend any damage done by the hacker. This keeps data from being tampered with by any hacker. This new form of data storage becomes a leading reason to transform how data is transferred and collected.
But what does this mean for you?
Based on an article written by Kenny Kline @ Inc.com, this means lower risk of losing any personal information, participating in a trustless system and fosters an open culture. Expanding on these subjects can take hours to sum it up. To encapsulate, you are not trusting a single enterprise to handle all your sensitive information in an easily attackable centralized location but relying on users to verify if updated information is true.
NFTs are the key to worldwide innovation of all industries.