Non-Fungible Tokens (NFT) on Algorand provide vast possibilities to tokenize various assets. One of the fields that is being exploited the most today is digital art, but this type of asset offers the possibility of exploiting many more industries, which opens the door to profitable investments.
NFTs in digital art
Undoubtedly the most exploited field in the universe of non-fungible tokens is the digital art one. In this field, many artists who want to take their works directly to the public can do so on Algorand, thanks to the facilities offered by the network to be able to mint this type of asset. It is very important to know how to recognize quality works, with the network infrastructure being one of the parameters to be evaluated.
In the universe of artistic NFTs, not everything is positive, since there are people who create low-quality works, with the only intention of speculating on their price in the future, taking advantage of users. The issue with this is that it’s generating a bubble with content that borders on the absurd, and probably in the medium term this will not have any value.
For this reason, it is necessary for users to inform themselves before acquiring a work, given that they may later own a digital file without any value. On the contrary, in Algorand there are several quality collections, in which we can really see the dedicated work of their creators.
NFTs have the characteristic of representing assets in a unique way, therefore each minted token will be guaranteed to be unique. This provides wide possibilities for the tokenization of assets of all kinds, that is, bringing items from the real world to the digital one in a safe and simple way. This subject may be exploited in future developments for the metaverse.
These types of assets generate an entire economy around them, and they still have a lot to exploit in the near future. Just to give an example, NFTs are being used to generate digital plane tickets and tickets for events of all kinds. The application in these areas is very useful, since falsification is prevented.
In this way we can appreciate that digital art is just the tip of an iceberg with incredible potential to develop. What happens today is that it is extremely easy to tokenize a digital “scribble” and then put it up for sale at an exorbitant price. The danger of this issue is that there are users who have the «hope» that it is worth much more in the short or long term, something that even at first glance is dismissed.
Algorand and the use of NFTs in real estate
In the Algorand network there are many interesting applications for non-fungible tokens, one of the areas being digital art, with several quality collections. On the other hand, NFTs are also being applied in other types of industries, which opens the door to a new world.
One of the fields that is beginning to expand, and that Algorand’s architecture will undoubtedly be ideal, is property tokenization. For this industry, NFTs are a viable solution to be able to tokenize real estate in a fractional way. In this scheme, users can acquire small portions of a property, providing financial access to this type of investment.
The advantage in using these tokens for the real estate market is that people can acquire these «fractions» of the properties at a very low cost. Thanks to this model, there is an opening for exposure to a new investment market.
NFTs are very powerful assets that provide the ability to tokenize assets in a simple and secure way. On Algorand, these types of assets are allowing quality digital works to be generated, which use the general infrastructure of the network. On the other hand, there are many uses for non-fungible tokens that include industries such as the real estate market, to be able to digitally “fraction” real estate, and give users access to a new investment market with small sums of capital.