Understanding True Value of Blockchain NFT Technology Through Cultural & Technological Frameworks

Every society has its own particular tastes and interests which make it unique, and the goods and services a society or people are capable of producing is tied directly to its method of governance and to the way in which it manages its central bank or money system.

Individual societies are more connected than ever before, in large part because of the world’s current financial system and its reliance on the US dollar as its reserve currency. This interconnectedness and reliance on the US dollar is starting to shift however, as new technologies make themselves available, and one of the most important of those technological breakthroughs are NFTs, or non-fungible tokens.

Shifting the definition of value via an underlying openness to and widespread trust in blockchain

This shift has been brought on by both the technical framework on which NFTs are built, as well as by the preponderance of powerful societal and cultural movements we have encountered in this century, which together have made possible an underlying openness and widespread trust of blockchain network technology that was needed for mass adoption.

To understand the true value of NFTs — and in the same manner to attempt to understand the value of those NFT’s physical counterparts — it is first necessary to conceive of how NFTs actually function, and then finally to attempt to make sense of the key societal elements at play which have made such mass adoption tenable.

NFTs are by definition unique digital assets capable of storing extra information and which have no replacement. They have built in smart contracts, allowing for royalties to be collected in perpetuity (i.e. the maker can profit for life from their work), and as such are the evolution of personal and collective wealth now forming the building blocks for much larger financial and social projects.

Deriving new forms of value from rarity, artistry, utility and community

NFTs provide true ownership over designs, inventions and creations, and derive their value directly from a combination of rarity, artistry, utility and community, relying on no central figure or authority to function.

Due to the science of distributed blockchain ledgers and immutable smart contracts, NFTs cannot be falsified or maligned, and authentic ownership can be validated; as such, NFTs are the perfect medium for scarce assets and are the redefinition of what it means to actually own property.

The perceived value of individual NFTs has been further buttressed by the widespread adoption and use of blockchain crypto assets as a replacement for the world’s reliance on a single reserve currency; as such, the power and influence of any single nation or actor — or the decisions made by a group — now have highly-diminished influence on the wealth and value attributed to NFT crypto assets. More importantly, it is now easier than ever for human beings to organize themselves in protecting and preserving what they wish to attribute value to.

A global movement based on the the unalterable foundation of NFT technology

This movement is bound to strengthen in the now ever-evolving Web3 era, as individuals and societies embrace blockchain and benefit directly from their openness to such innovative technology.

It is clear to anyone paying attention that openness to using NFTs is a major step for any group wishing to prosper today, and there is an absoluteness, a certainty, derived from the technological underpinnings of NFTs, which ensure the wealth and resources embedded in each will never perish and never erased.

History tells us that it is those societies which keep an open mind to learning new things, and which integrate foreign ideas with their own — which are the societies which flourish and develop the fastest.

For anyone interested in understanding the value of NFTs, one need not look further than the technology itself; once the real-world utility of NFTs is realized, there can be no doubt that this is one of the most transformative financial and cultural shifts the world has ever seen. How exciting is it then to be around for what’s next?

About LuxFi

LuxFi is the world’s first asset-backed NFT marketplace for luxury assets, where people can buy, sell and invest in luxury assets using cryptocurrencies and traditional payments. We eliminate counterfeiting while minting an NFT on a multi-chain blockchain network, with a focus on luxury assets that hold value well and have a high resale value. Leveraging our big data intelligence system and unique algorithm for automated data collecting and data processing, the value of each NFT on our platform is backed by real-world data.

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