The rise of the NFT market has taken the internet by storm in the last couple of years, with tokens being traded all over the world for surprisingly large amounts.

However, just because NFTs have been making people a lot of money doesn't mean they have no societal benefit. In fact, the scientific community has recently begun to receive the benefit of companies selling NFTs, both through donations tied to their sale and through scientific organizations directly selling tokens themselves.

It is happening all over the place; for example, VidaCap launched an NFT only recently for this very purpose.

But which other companies are supporting scientific research by selling NFTs? And how do NFTs even work?

What Are NFTs?

NFTs, or non-fungible tokens, are basically pieces of non-interchangeable data represented by a token.

The non-fungible part means that it cannot be swapped or exchanged for the same value. A regular coin is fungible because if you replaced one coin with a coin of the same denomination, the value wouldn't change.

NFTs are significant because they represent something unique that cannot be copied or mimicked in any way, at least when it comes to ownership.

NFTs are represented through pictures, which leads some to believe that they don’t make sense – anyone can just copy a picture, right?

But purchasing an NFT is not actually buying the picture itself, but instead the certificate of ownership and authenticity. It is trading the acknowledged ownership of the image, sort of like trading on the futures market.

This is actually an exciting technological development because it means that NFTs could be used as part of any transaction process requiring authentication. It does this is through a blockchain.

But wait… what’s a blockchain?

What Is the Blockchain & How Is It Relevant to NFTs?

The word "blockchain" is thrown around a lot and has become heavily associated with cryptocurrencies and the rise of things like Bitcoin.

However, while most people associate it with cryptocurrency, the blockchain is really a technology of shared authentication that can be used elsewhere.

The blockchain itself is made up of connected blocks containing a list of records that help to store data. For example, it stores authentication details, a list of past transactions, and other computerized data.

The cool part is that all of the data in each block is authenticated by data from the previous block, encoded in a cryptographic hash.

This makes each block basically un-hackable because it would be impossible to learn the hash data through decryption of the hash key.

All of this data is run collaboratively by computers on the blockchain network, which allows for each system to help authenticate one another.

NFTs enter this conversation because the ownership of certain things, like images or pieces of text, can be guaranteed and understood through the blockchain.

While the majority of transactions on the NFT market are all about trading in the hope of big profits, there is a growing number of companies that are trying to support scientific research through NFT sales.

But how does that work?

How Does Selling NFTs Support Scientific Research?

A few intelligent companies and scientific researchers have begun to realize the potential for NFTs to help support science by donating proceeds of certain sales to scientific research.

A great example is the recent sale of an NFT featuring the source code of the very first web browser by Tim Berners-Lee. There is also the NFT representing the data and documents of Nobel-prizewinning researcher James Allison. This money was funneled into scientific research facilities, meaning that the sale led directly to better science funding.

Essentially, companies can now create and sell NFTs and tie their sale toward funding scientific development. This opens up a whole new way for companies to get involved within the scientific world and directly contribute to the betterment of science as a whole.

VidaCap’s NFT Launch & Its Impact

One recent addition to the list of companies trading in NFTs for the good of science is the mushroom website, VidaCap.

VidaCap released a series of mushroom NFT collectible cards, with the money designed to be poured into Alzheimer's research and to increase awareness around functional mushrooms.

With all of the profits going directly to Alzheimer's research, this project not only allows for dedicated science funding in a desperately needed area of scientific research but also an excellent benefit for the company as well.

By interacting with the NFT community, VidaCap, and many other companies like them, can increase awareness of their product range while also supporting scientific research that they care strongly about.

It’s a win-win for science and the company at the same time!