How DOES NFTS Impact Asset Ownership?
Non-fungible tokens brought an innovative way of rightfully owning physical and digital assets. Before NFTs, creators were bound by the shackles of biased institutions. Moreover, anyone could forge their creation, cheat the customers or claim their work as original.
There was no clear way to distinguish the original from the fake. Everything was messed up. We needed a system that would give creators their due credit as well as safeguard the ownership of the asset.
This is where the NFTs came into existence. They not only gave the creators the freedom by eliminating the middlemen but also offered a more structured system of ownership. A system where all the asset data are stored on a secure network and accessible to everyone. Thus, you can access all the information about the asset from its creator to ownership history and even check its authenticity.
That’s not all. The Non-fungible tokens have transformed the entire system of asset ownership in ways we had never imagined. Let us understand how.
3 Ways NFTs Revolutionized Asset Ownership
According to Kevin Mc Coy, the sole purpose of creating NFTs was to empower the creators. Another goal was to give the owners solid proof of their ownership of a valuable asset.
For both buyer and creator, it was very difficult to secure their ownership claims. You were never sure if you are getting the original asset or a fake one. Moreover, anyone could scam you with duplicate assets and you wouldn’t even know.
There was no structured way to find out who is the rightful owner of the asset and if it was the real one or not. Even if you find out that someone is plagiarising your work, you could not prove it or call out him. For small creators and even buyers, all these issues were becoming a concern.
However, the scenario has now changed thanks to the Non-fungible tokens.
Here is how NFTs have redefined the ownership rights of physical and digital assets.
Ownership Is Protected
NFTs are built on a blockchain network that supports smart contracts. All the NFTs and the data are securely stored on the blockchain.
The blockchain network functions in a way that no one can hack into the system and alter the data. All the crucial data about the NFT and the asset is secure from any kind of theft, forgery or alteration.
In the worst case, if someone hacks into the blockchain and alters the NFT data, the system will automatically cross-check and correct itself.
Therefore, you have a secure blockchain network to store all the information about the digital asset.
When you know that no one can alter data on the blockchain, the data present on the network is reliable. That is why, now, you can refer to the NFT asset data on the blockchain. Thus, you can prove who is the rightful owner as well as the authenticity of the asset.
Ownership Is Immutable
Before NFTs, it was a mess to resolve the multiple ownership rights over an asset. But now, you can access the information on the blockchain and verify all the details of the asset.
Data on the blockchain is immutable meaning no one can forge or replicate it. So whatever information is there on the blockchain, it’s reliable.
You can even see the entire ownership history of the original physical & digital asset. you will have the entire list of who was the creator, the first owner and the latest owner of the asset in question.
Therefore, you can prove your rightful ownership of the asset. Moreover, you can call out to the one who is copying your work and claiming it as his original work.
Thus, in case of any ownership controversy, you can easily resolve it with reliable data of the asset present on the blockchain.
Ownership is Authenticate
You are ready to pay hundreds of dollars to own the original NFT moment of NBA. But will you pay the same for a fake one? What is the art or video or music you just bought is a fake?
Asset authenticity is very crucial because only the original one deserves the value. With NFTs, you can check the authenticity of the asset anytime. Some marketplaces also have features that let you verify the authenticity of the asset before buying.
Non-fungible tokens have made it possible to prove your ownership and determine the authenticity of the asset. It has created a new system of recording ownership data and all the crucial information about the asset. Thus, making it easier to resolve controversies and avoid frauds and scams.