Whether collecting priceless pieces of artwork worthy of being hung up in the Louvre, or simply tingling senses with a hobby by assembling collections of stamps or beanie babies, the essence remains the same – owning a set or a unique item that bears either intrinsic or sentimental value.
The uniqueness of the item in question is highlighted by its scarcity – a quality that sets said item apart in the overall economic system as a rare and, ergo, a highly demanded object. The law of scarcity thus intertwines with the law of supply and demand, ensuring the rise in price and value of the given item by virtue of its being unique. As the supply of an item decreases, demand for it must increase based on economic sense and basic human nature that wishes to have an individual stand out from the crowd by showcasing the possession of rare objects of luxury or value.
The digital realm is the latest iteration of the economic battlefield, where advanced and innovative technologies are vying for market segments, and the volumes of funds circulating there. Truth be told, there is always money to be made on innovations, provided they are accurately targeted on lucrative forms of application of the underlying technology to cater to the participants of said markets.
The advent of decentralized technologies has heralded a completely new turn in the development of real-world assets as their digital counterparts emerged in the form of Non-Fungible Tokens.
The NFT Phenomenon
When it comes to immutability, the blockchain is the undisputed leader, allowing anyone to view, track and audit the movement of assets anywhere on the network. The same quality of immutability can also be used to the advantage of users seeking to solidify their rights to certain assets that exist outside the digital space. Though it had seemed daunting at first, the issue of bridging the gap between the digital and physical worlds was overcome through the advent of two uni...