United States Federal Election Commission permitted Data Vault Holdings to use non-fungible tokens for fundraising activities reported by Cointelegraph. According to the news, Data vault had been given permission to distribute NFT as an incentive for political campaigns. It will track all the tokens and would get appropriate compensation so that the money may not be overspent by the political party’s supporters.
Denotation of NFTs
NFT’S are non-fungible tokens. It means that they are not replaceable with other same things or not interchangeable. They have their own unique identity. One NFT cannot be exchanged for other, which means two NFTS are not equal unlike we can exchange $500 for 5 notes of $100 but we can’t interchange. So, what is meant by token, it signifies the unique address of the unique digital form.
How Do NFTs Work?
The NFTs work on blockchain technology which allows transparency to the public. Basically, blockchain is like a public ledger anyone can see the holder, and the money paid by him and the information can’t be altered. NFTs can only have one owner at a time. Let’s take an example to understand how any digital form can be converted into an NFT, a handwritten note converts it into a digital form and when you list it as a marketplace, your digital piece is converted into an NFT and a unique address is assigned to it by using blockchain technology. This provides you with full ownership of the NFT.
Marketplaces where you cast list your NFTs are Opensea.io, Rarible, Foundation and many more. One can buy the NFT by using crypto wallets. Simple right, where else we can use NFTs?
Cases Where We Can Use NFTs
NFTS can be used to bring transparency in donation and charity. When any donor makes a donation, he can be assigned an NFT that represents the value so one can easily track their contribution. Not only this they can also make a change in the fashion industry virtually. With the emergence of augmented reality and virtual reality concepts that use the digital world in enhancing real-life experiences.
NFTs in US Elections
The NFT could contain any artwork, campaign literature, position, papers and other campaign-approved digital forms. This is the same as souvenirs used in political campaigns but in a digital form. This would provide high-volume low-dollar contributions by supporters. It can be used to provide a wide range of variety for political campaigns. Not only this, when the election gets over all the souvenirs, are considered garbage but with the help of NFTs, this problem can easily be solved.
Future of NFTs
NFTS are here to stay because this all goes beyond collectables, and art forms as we read earlier, they can be used in tracking donations to the fashion industry. The idea behind NFT is based on authentication and transparency and
that is revolutionary in its own way. The utility and purpose of NFTS are not limited to virtual or digital content, and digital assets to be treated.
Written by Mansha Wadhwa
Edited by Nidhi Jha
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