Technological advancements are now required for societies to flourish and develop, yet at the same time human cultures, traditions, goals, and aspirations have affected how those societies have generated, thrived, and been constrained by technology today. As a result of being developed to serve societal requirements, all sorts of technology are intimately connected to a given culture and its people. Once produced, whatever issue the technology addresses changes how society behaves and functions, which may lead to new alternative economic systems or novel ways of human life, all of which may pave the way for further technological advancements.
It is undeniable that the advancement in technology has changed almost everything in this world. Along with many other things, technology has made it easier to travel, conduct businesses, foster globalization, establish cities, effectively connect all nations across the world, and facilitate the expansion of economies. On top of that, It is generally acknowledged in the economics world that technology is the primary force behind the expansion of the economy in all nations, and regions around the world.
The Role of Technology in Economic Development
The primary long-term driver of economic expansion is productivity in the professional industry. Innovation made possible by technology is the main driver that leads to the rise of this productivity. The growth and development of the economy depend heavily on technological advancement. So, the faster the global economies can advance, the better it is for the world.
As we all are aware, technology has a tremendously huge impact on the business sector, which also contributes to global economic growth. The world is made faster and more convenient, thanks to technological development. As a result, it takes less time to produce high-quality products and services in the business industry, which might also promote economic expansion.
Moreover, technology has also increased job specialization and the labor division inside the business industry, which bring a positive impact on how smooth and efficient a business can operate. Due to this, businesses are able to maximize the production of goods, which also results in larger profits and more rapid economic growth. This is made possible by the continuously increasing state of technology.
There is no denying that more and more people are taking advantage of technological development to improve their financial status and thus, help increase the growth of the economy. Online business, digital marketing, and online investment are all possible, thanks to the innovation of technology. Today, the existence of a new way to generate money online has rapidly grown its popularity among people including celebrities, influencers, and content creators. With the digital skills that many people have picked up in today’s digital world, they can create and sell their own artwork through NFTs platforms in the marketplace. Many people are now starting to purchase and sell NFTs due to their recent rise in early 2021.
What are NFTs?
Even with a tremendous amount of popularity on every social media platform, many people are still confused about what NFTs are and how they work. According to Collins Dictionary, the definition of NFT is a unique digital identifying code that is being registered in blockchain technology and used to prove the ownership of a digital asset such as digital artwork, video games, images, or collectibles. It is a short abbreviation of “non-fungible tokens”.
NFTs are regularly purchased and traded online and they are usually encoded using the same software technology as many other cryptocurrencies. Why do people actually buy NFTs? You may ask that question. But the reality is, that people would spend millions of bucks on that particular digital asset to keep the ownership of the original item and it is almost more valuable to collectors than the actual item. Additionally, it has built-in authentication that serves as ownership confirmation.
Unlike bitcoin and cryptocurrency, the digital asset in NFTs, as its name suggests, can’t be changed or replaced with anything similar to them. You can find the Disney NFT Malaysia update and buy it with a unique code and trade it with something similar, but you will most probably get something completely different and the value is not the same since it is non-fungible. However, you can exchange one bitcoin for another to obtain the same thing with the same value since it is more fungible.
The Technological Development Behind NFTs
People have been purchasing and selling cryptocurrency way before the existence of NFTs. But the fact that NFTs are supported by blockchain technology sets them apart uniquely from other digital forms. Now, what is the blockchain technology behind the NFTs? According to Investopedia, a blockchain is a shared distributed database or ledger between the digital nodes in the network. A blockchain serves as an electronic database for storing data in digital form.
The most well-known use of blockchain technology is for preserving a secure and decentralized record of transactions in cryptocurrency systems like NFT and bitcoin. Thanks to the development of technology, digital information can now be recorded and shared without editing it through blockchain technology. A blockchain serves as the basis for records of transactions that are impossible to change or remove.
How do NFTs help in the growth of the economy?
As mentioned before, NFTs are rapidly growing on the internet and social media platforms. Many people are willing to spend a large sum of money to purchase it and invest in NFTs. The NFT marketplace has expanded over the past two years since 2020 and shows no signs of stopping any soon.
NFT gives businesses a new way to control and market their products on online platforms. As NFTs make it possible for artists to share and monetize their artwork from anywhere worldwide, they are seen by many as an important economic breakthrough. Through the development of a new investment market that is innate to the digital realm, NFTs have the potential to completely transform the global economy.
Inequality and poverty are two of the most urgent economic issues facing the globe today, and NFTs may be able to help. NFTs may assist to lessen income inequality by granting users control over their digital assets and allowing them to take part in the global economy without depending on conventional financial institutions like what we did in the past decades. NFTs have the potential to develop a financial system that is more effective, inclusive, and more suited to meet the demands of this digital era.