The benefits of NFTs
1 – NFTs contribute to greater market efficiency
The ability of NFTs to increase market efficiency is their most visible advantage. Converting a physical commodity into a digital asset helps streamline supply chains, reduce the number of middlemen, and enhance security.
2 – They can be used to split the ownership of physical assets
Today it is difficult to divide property such as works of art, real estate and expensive jewelry. A virtual copy of a work is easier to divide among multiple owners than a real copy.
The same goes for a piece of high-value jewelry or a one-of-a-kind wine case. NFTs allow this like RealT for example.
3- The blockchain technology that underpins NFTs is extremely secure
NFTs are made using blockchain technology, which is a information storage method who cannot be neither hacked, nor modified, nor erased.
4 – NFTs can help diversify an investment portfolio
NFTs are not the same as traditional assets like stocks. They possess various qualities and bring benefits that we are only beginning to fully understand, as discussed earlier.
If you want to get NFTs, we recommend that you first visit the Opensea platform.
Disadvantages of NFTs
1 – The disadvantages of NFTs are their inconstancy and lack of liquidity
As NFTs are still in their infancy, the industry is not extremely liquid. Simply put, NFTs are still poorly understood and potential buyers and sellers are few at the moment.
Read also Ethereum co-founder issues stern warning against NFTs as Bitcoin, Cardano, Solana and Dogecoin price suddenly surges.
2 – NFTs present a risk of potential fraud
If the integrity of a blockchain cannot be questioned, NFTs can be used to commit fraud.