A cryptocurrency is a fungible token - that is, a token which is functionally equivalent to another of its kind (e.g. one bitcoin fuctions the same and has the same value as any other bitcoin).
The reverse of this, ‘NFTs’ are non-fungible, which means that each is in some way unique and therefore can't be exchanged for another NFT in an equivalent manner (ie. there isno reason that one NFT will be worth or function the same as another NFT). The quality of non-fungibility lends a huge power to NFTs when considering their use in digital space. A good example of why this is can be understood by examining art. In the real world, art is unique (ignoring others copying an original work), and as such it has its own qualities and draws.
NFTS allow this sort of uniqueness and originality to exist in the digital world
NFTS rose to fame in art and art-centric blockchain projects but their potential uses extend far beyond artwork
NFTS can be used in enterprises focussed on such things as gaming, music, sport and many other areas
Anywhere where limited availability or ownership needs to be established, or where customisation, trade or sharing functionality needs to be enabled. Any time someone wants to interact with something that has any form of unique quality, an NFT will be the route to take.
Of course, the obvious issue with using NFTs is being able to prove ownership of them, or with proving the NFT represents what it claims to represent. Using the art world for another example, artist Damien Hurst recently made headlines by burning the originals of his work for those who preferred to purchase them as NFTs (perhaps missing an opportunity to simple use NFTs to show ownership of the originals) but
The answer to these questions is that the NFT ecosystem needs regulation. Just as crypto and blockchain are embracing regulatory measures, ensuring the safety and security of those who interact with NFTs is vital for the potential of the market to be fully realized and to thrive. By introducing KYC measures to the NFT space, the risk of encountering fraudsters and scam artists plummets, and users can interact with NFTs and each other to trade value and to develop further markets and businesses. This potential is on the verge of breaking out into something colossal as we hinge on the arrival of the metaverse - a development that will require both crypto and NFTs to fully enable the digital world to function. As this aims to become an everyday method for interaction and underpinning technology for life in the future, it has to be protected from bad actors.
To solve this nascent and growing issue, Blockpass has already developed regulatory solutions which not only mitigates the danger but does it in as fast, effective, efficient and user-friendly way as possible. By providing KYC and AML solutions for NFTs, Blockpass provides a much-needed service in removing those who seek to exploit the system by committing fraud, funding terrorism or engaging in any other illicit activity. With a verified identity, anyone involved in the system can establish proof of their ownership of NFTs and the legitimacy of the real or digital properties they own through NFTs. Blockpass provides a compliance solution that is in demand by businesses that are minting NFTs.