Your Guide to NFT Domains
The trend of NFTs has been increasing at an exponential rate. As more and more people are becoming aware of the concept of NFTs, the number of people dealing with them is also growing heavily. In the year 2021, more than $41 billion of crypto was invested in the NFT marketplace. Such numbers are only proof of the fact that NFT really is becoming our key to the future.
How do NFTs Work?
NFTs work on a decentralized system, which means that there is no central authority declaring their issuance. Unlike the central bank that authorizes paper money printing, NFTs are created, used, and reused virtually, with no central managing authority. Previously, the scope of buying and selling NFTs was limited to pictures, videos, and memes. In fact, it is quite surprising that one meme was traded through NFT for $4 million. (source: fortunly.com)
What is NFT Domain?
The trading of NFTs has reached a greater horizon now. It is not only limited to multimedia but has also expanded to the level that domain can now be traded through NFTs. NFT Domains are domains that are constructed on a public blockchain. Although you will get a long list of the most expensive domains purchased so far, the concept of the NFT domain is relatively new. However, it is gradually starting to make its footprint to change the future.
The Concept of Blockchain
The term blockchain here refers to the way of recording data that makes it impossible to steal or hack the information available on the platform. It becomes difficult to hack because the data is distributed across the public rather than being concentrated on one secure platform. It is the same as imagining an asset under the vigilance of a hundred people sitting around it compared to an asset locked in a closed cupboard. The former will be more likely to stay safe as no thief will think of venturing to steal an asset guarded so strongly.
The Pros of NFT Domains
Moreover, NFT domains allow you to be the core authorizer of a domain, unlike regular domains where another company or an organization handles a particular domain. In an NFT domain, only you can make all the necessary changes, while others can only see that change occurring. Another great advantage of an NFT domain is that you do not have to pay any annual fees for it again once you purchase a domain. Once you have bought it, it is going to remain yours for life, unless you decide to sell it, of course.