“EDSX, digitalization and the rise of NFTs”
Digitization is drastically expanding the traditional industry boundaries. Digital ecosystems allow an increasing number of sectors to converge to newer, broader, and more dynamic alignments. While taking part in this transformation, businesses use sensors, artificial intelligence, internet of things (IoT), and others. Among the most promising waves of digitalization is blockchain, a breakthrough technology suggested to dictate entire new markets.
With the rise of blockchain, new solutions arise quickly, and decentralized finance becomes an increasingly attractive market. Information in the blockchain can be verified by means of tokens. A token can be interpreted as the digital representation of an asset in the blockchain, with two main types of tokens: fungible, and non-fungible tokens (NFTs). Fungible tokens are identical and interchangeable (fiat currency, for i.e.). Non-fungible tokens are unique and non- interchangeable (such as notarial instruments, artwork collectables, videos, in-game items and music), which allow traceability of unique physical or non-physical possessions [1].
The breakthrough ability of the NFTs is to translate a unit of data stored on a blockchain into a unique and not interchangeable digital certificate, that is, an unbreakable digital fingerprint for something unique. Each NFT has an identifier, therefore, not directly allowing interchangeability with other types of tokens, but easily being bought and sold on digital marketplaces.
The NFT notion emerged in the early 2010s but gained notorious attention this year. The scope of the NFT world can extend as far as your imagination, to basically anything with proof of ownership; a unique digital artwork, an essay, an in-game item, a digital collectible, a domain name, an event ticket, a coupon, and so on. In March (2021), an NFT for a digital artwork by a US artist nicknamed Beeple was sold for nearly $70 million, with the market reaching a 30-day sales record of $325 billion in early May [2]. The fashion industry is also going head over heels for NFTs. But how and when arts, fashion and other markets and crypto merge, exactly?
As Non-Fungible itself means unique and irreplaceable, like a piece of art, the same concept has been translated to the digital token. The creator of the digital art is the unique owner of the intellectual property, holding an exclusive digital signature, practically impossible to be copied or hacked. Many say this is the future of the arts, which has given more power to content creators than ever before, powered by smart contracts and blockchain.
Innovative solutions through blockchain, increased security and increased liquidity are among EDSX core values. We are fully compromised to every aspect of the financial revolution, and we will be soon the first platform in Europe with primary and secondary markets for both institutional and retails.
Please contact us for additional details and opportunities, join us on the financial revolution.
EDSX Management Team
[1] J. Arcenegui, R. Arjona, R. Román, and I. Baturone, “Secure combination of iot and blockchain by physically binding iot devices to smart non-fungible tokens using pufs,” Sensors, vol. 21, no. 9, 2021, doi: 10.3390/s21093119.
[2] N. Jones, “How scientists are embracing NFTs,” Nature, vol. 594, no. 7864, pp. 481–482, Jun. 2021, doi: 10.1038/d41586-021-01642-3.