The concept of digital tokens, blockchain, and cryptocurrencies has recently captured the attention of many people throughout the world, particularly in India. Everyone, from the common man to celebrities, is talking about digital tokens, digital money, and so on. NFTs, or Non-Fungible Tokens, are also gaining popularity. NFTs are digital assets that leverage Blockchain technology and are traded using bitcoin. The technique employs a distributed ledger technology (DLT) system that enables secure trading with immutability.
Blockchain technology is a distributed ledger system that supports and permits trade in crypto functions. As a digital asset, NFT is used for secure transactions and trading with appropriate encryption messages.
Furthermore, NFTs are not digital currencies but digital assets that can be exchanged for cryptos. They are traded on digital platforms to allow users to buy and sell NFTs. The blockchain that powers all of these systems work to protect them from outside threats.
As a result, blockchain technology has a bright future, which is why it is referred to as a future technology. Most businesses, including the government, intend to use this technology to improve the security of monetary transactions. This will boost digital growth and make the economy more transparent. In this article, we are going to discuss the future of blockchain technology with NFTs in India.
Is There Any Future Of Blockchain Technology?
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The future of blockchain technology is very bright in India. By 2030, it is predicted that roughly 30% of the worldwide customer base will be using blockchain as a primary technology. Furthermore, blockchain will offer value to firms that are expected to increase by more than $170 billion by 2025. These statistics indicate that blockchain will dominate the future commercial market.
Not only will it have an impact on the industry, but it will also have an impact on government organizations that deal with money. It will help to safeguard trades and transactions using cryptographic techniques, and no one will be able to alter the data.
Similarly, cryptocurrency transactions are visible and trackable, but no one can change the data. As a result, blockchain technology is much closer to the next generation of people.
The NFT market has the capacity to trade digitally, and collect and transfer ownership to traders worldwide. The process is progressing toward the digital landscape established by technology. Furthermore, there is optimism that the development and demand for NFTs will continue to expand in the market.
It appears that trading and investing in NFTs will become similar to stock market investing.
Furthermore, because of their digital asset character, NFTs are subject to security audits at various stages. However, NFTs are in the hands of blockchain, which secures them through its digital ledger and preserves their uniqueness.
The difficulty will be solved once investors begin to appreciate the nature of NFT’s work and their definition of functionality.
People can trade NFTs on numerous digital platforms, and buyers can hold them for a long time and wait for their value to rise.
As a result, blockchain ensures continuous records of every NFT transaction. Hence, there is a very bright future for blockchain technology with NFTs in India.
NFTs’ operational strategy
Non-fungible tokens and digital assets built on blockchain technology are known as NFTs. They represent tangible things such as artwork, gaming, collectibles, and many others. Because of their uniqueness, they only have one owner at a time. Every trade, investment, or transaction is verified and authenticated online. As a result, it is extremely secure and transparent.
There is no actual value available for the trade or exchange is done through NFTs. However, instead of any actual worth of NFT, you will receive a certificate of ownership. This is a significant advantage because no data is altered. Furthermore, you must preserve the certificate digitally safe for future use.
However, NFTs are currently not legally viable in India, but we should hear about the application of appropriate laws soon. It will encourage enthusiasts to deal in NFTs more actively.
All of these services are based on blockchain, which is the ultimate technology that powers NFT.
The Future of NFTs in India
With the development of laws and regulations, NFTs, or Non-fungible Tokens, will undoubtedly have a bright future in the country. As far as we know, blockchain enables significantly faster and more cost-effective global transactions.
People began to recognize the significance of this technology as their trust in it grew. Blockchain will only increase the future corporate world because it is incredibly cost-effective.
NFTs are a digital asset that has recently inspired many people, including celebrities, to start their own NFT collection. This influence indicates that we will soon be able to trade with NFTs and gain more relevant insights.
As a result, the NFT community will gain rapid momentum in pressuring the Indian government to enact laws governing its legality.
Monetization of digital assets will occur, providing further benefits to marketplace participants. The digital economy will also benefit from new entries into the market for NFT and other digital assets.
Some concerns about NFT in India
These are the following concerns of future of blockchain technology in India as follows.
Taxation of NFTs, and cryptocurrency
Gains from virtual digital assets and NFTs (excluding those exempt) will be taxed at a flat rate of 30% beginning April 1, 2022. Furthermore, no expenditure deduction will be permitted (except the cost of acquisition). Any set-off of losses from the purchase or sale of VDAs against other income will be prohibited. Even profits from one virtual digital asset cannot be offset by losses from other virtual digital assets.
Furthermore, a 1% TDS has been levied on the transfer of VDAs, crypto, and NFTs. TDS will be levied if the buyer’s payment to the seller exceeds the stated limit.
Possibility of Fraud
Although the integrity of a blockchain cannot be questioned, scams and fraudsters may still exist in the system. Indeed, several artists have recently claimed that they were unaware that their work was being offered as NFTs on online platforms. This clearly violates the objective of using NFTs to promote the sale of paintings. The NFT’s value proposition is that it employs a specific token to authenticate actual works of art, ensuring that whoever has the token also has the genuine piece of artwork.
As a result, making an electronic replica of the original work, attaching it to a token, and selling it on internet marketplaces is incredibly difficult. Once it’s for sale, there’s no longer any connection to the original work, and the token is associated with a bogus version. This is the biggest concern related to the future of blockchain technology with NFTs in India.
NFTs are highly volatile
NFTs are still in their early stages of development. They are generally seen as an asset rather than a tactic of a technical show of ownership. Because the market is still new, they are not thoroughly understood, and their future buying and selling sector is similarly tiny. As a result, they are more difficult to trade. Furthermore, inaccuracy in general may cause the value of an NFT to deflate or rise. As a result, they are thought to be volatile and illiquid.
You Must have Ethereum (ETH)
Because the majority of NFT purchases take place on the Ethereum network, you will frequently need Ether (ETH), the money utilized by the blockchain, to purchase the digital artwork. If investors want to buy digital assets with fiat currency such as the US dollar or Indian rupee, they may not have many options.
The demand for NFTs is immense and growing all the time. However, even if they appear to have a lot of potentials, you should proceed with caution when investing in new, uncertain markets because they are unstable and dependent on conjecture. In short, NFTs offer both advantages and disadvantages, but it is probably not a good idea to invest in any asset, regardless of whether it has been tokenized. Whether a blockchain indicates who owns an asset or not, the principles of investment remain the same. Finding high-quality assets that you wish to purchase and taking the necessary steps is your best plan of action as an investor. At last, we have discussed all the possibilities for the future of blockchain technology in India.