NFTs; The disruptive force to banking?

Introduction

Kartik and Kiara were talking about the booming NFT technology. Kartik worked in the banking sector. He was wondering about the effects of NFT on the banking sector.
Kiara noticed the change in Kartik’s expressions and understood his temperament.
She then decided to explain to him the NFTs’ effect on the banking sector.
Let us also learn about it in detail.

Entering the conventional path

Since November 2017, $174 million has been spent on NFTs, according to a recent Forbes article. This includes several notable NFT sales that helped to raise their profile. Christie’s, for example, paid $69 million for an NFT collection by digital artist Beeple. Meanwhile, Twitter CEO Jack Dorsey sold his first NFT tweet for $2.9 million.
Over the last decade, blockchain technology has received much attention, moving beyond the praise of niche Bitcoin fanatics and into the mainstream conversation of banking experts and investors.
JPMorgan Chase CEO Jamie Dimon mocked Bitcoin in September 2017: “It’s worse than tulip bulbs,” he said, referring to the 17th-century Dutch tulip market bubble. “It’s not going to end well.” “Someone is going to die.” Goldman Sachs’ senior chairman, Lloyd Blankfein, agreed, “Something that moves 20% [overnight] does not feel like a currency.” It is a means of committing fraud.”

Impact

Blockchain technology can eliminate redundant efforts and make real-time information sharing between financial institutions more manageable and safer by storing customer data on decentralised blocks. Because of the technology’s inherent security, blockchain may alleviate ongoing administrative and regulatory burdens. Blockchain technology has the potential to enable fast (potentially real-time) payment processing services.
NFTs are acting as a lightning rod, bringing Digital Ledger Technologies to a broader audience than ever before. This is paving the way for a new era in the purchase, sale, sharing, and distribution of digital goods and content. How might people not currently buying or trading NFTs affect their future? When will they emerge from the pages of newspapers or social media and into the lives of ordinary people? Is everything digital in your life about to become an NFT? These are some of the central questions coming to the surface.

Conclusion

NFTs represent a fundamental shift in the way consumers buy and sell digital assets such as music, video game content, and movies. Furthermore, smart contracts enable publishers, artists, and content creators to be paid each time an NFT is sold.
However, as more people learn about and buy NFTs, the blockchain technology that enables these exchanges becomes more common. With its debut on the big stage, Digital Ledger Technologies has begun to pose new challenges and opportunities to the banking and payments industries.

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