The Non-fungible Tokens (NFTs) is the latest trend in the Crypto world and has gone viral after the comment made by celebrities like Elon Musk. The first NFT was launched in 2017 by Larva Labs. The market cap of NFT shows significant progress, growing almost ten-fold between 2018 and 2020. The NFT market grew over 299% in 2020 with more than $250 million in transactions and is still growing. While these statistics are mainly from Digital NFTs, the Tangible NFT market has been untapped.
WHAT ARE NFTs?
NFT stands for a non-fungible token, but what does it mean? Before NFTs can be explained, let us look at the definition of fungible. “Fungible” describes a good that can be swapped for another good within the same asset class. Fungible describes an item that can be directly replaced or traded. For example, the Australian dollar and Bitcoins are fungible. You can swap a Bitcoin for another Bitcoin, and you would still hold the same value as before. Non-fungible, on the other hand, describes a one-of-kind, unique good that cannot be exchanged for another good within the same asset class.
TANGIBLE is one of Phaeton Blockchain’s “Sidechains”. It is a brand that focuses on tokenising physical assets and collectables into Tangible Non-Fungible Tokens (T-NFTs). Under the brand name of TANGIBLE, Phaeton’s strategy is not to create a general TNFT Marketplace but to create silo Marketplaces for various products from real estate, art and sculptor, music, rare wine to endangered wildlife. These silo marketplaces will have an expert manager who will focus on their expertise and drive their specific marketplace.
DIGITAL VERSUS TANGIBLE NFTs
Let us compare the difference between current digital NFT’s against Tangible NFTs.
Digital or intangible NFTs have an uncertain and unpredictable future. Naturally, most people prefer items that they can touch and feel. Things that are real and have stood the test of time which can also grow in value. At Phaeton, we believe that as the NFT market grows, there will be a substantial shift from digital to tangible items. Current digital items are exposed to security and copyright issues. Soon, lawyers will be in high demand fighting copyright matters on behalf of their clients.
Head to https://phaeton.technology to discuss options using our TNFT solution.