Like any technology, NFTs can provide more efficient ways of doing business. For example, they work with a crypto technology called a blockchain. It is a distributed ledger of digital records that do not necessarily require a central system to run. Transactions can potentially be faster and easier.
In addition, the blockchain also keeps a record of all NFT-related transactions and the properties it represents. For example, when selling works of art, this could mean the origin of something going back to the creator. The chain can also contain a list of all users who have ever owned this token.
NFTs can also include so-called smart contracts or encoded elements that can automatically perform actions under certain conditions. The concept represents an automated and self-contained set of rules that cannot be ignored or skipped.
But why do people waste time building a digital asset when they can just buy a real car? Collecting material items faces several challenges, such as validation. This can be difficult, long, or in principle impossible since any unique thing can be falsified with high quality. Determining the history of an object, tracing the past of a thing, especially an old one, can be extremely difficult.
In the past, the legitimacy of the digital property was even more difficult to verify due to the fact that the Internet is simply overflowing with copies. NFT supporters say blockchain know-how like NFT solves these problems. By publishing a fragment on the blockchain, an artist creates an immutable, verifiable public file of its authenticity.
I wonder just how much energy do the blockchains consume? Is there a way to make it more efficient?
How are these NFTs even protected by some user just screenshotting them and using them privately ? To me this system doesn’t seem that safe .