What is an NFT ?
When I read news about the famous Nyan Cat that sold as a one-of-a-kind piece of crypto art, it makes me to thinking, ” So what’s going on here & what is NFT?”
Understanding NFTs: A Beginner’s Guide
What is NFT?
Non-Fungible Tokens (NFTs) are a type of digital asset that represent ownership or proof of authenticity of a unique item or piece of content, using blockchain technology to establish and verify their uniqueness and ownership. NFTs can represent digital or physical assets, including digital art, videos, music, and even real estate. Unlike cryptocurrencies such as Bitcoin or Ethereum, NFTs cannot be exchanged on a one-to-one basis due to their unique nature.
How Do NFTs Work?
NFTs are built using smart contracts on blockchain platforms such as Ethereum, which ensure the uniqueness and ownership of the digital asset. These smart contracts contain specific information about the asset, including its creator, owner, and a unique identifier that distinguishes it from other assets. When a transaction involving an NFT occurs, the blockchain records the transfer of ownership, providing a transparent and immutable record of the asset’s provenance.
What Makes NFTs Unique?
The key feature of NFTs is their non-fungibility, meaning that each token is distinct and cannot be replicated or exchanged on a like-for-like basis. This uniqueness is what gives NFTs their value, as they represent ownership of a one-of-a-kind digital asset. Additionally, NFTs can also include royalty mechanisms, allowing creators to earn royalties from secondary sales of their digital assets.
NFTs in the Digital Art World
NFTs have gained significant attention in the digital art world, providing artists with a new way to monetize their work and establish ownership and scarcity in the digital realm. With NFTs, digital artists can create and sell unique, verifiable digital art pieces directly to collectors, bypassing traditional art market intermediaries.
Potential for Expansion
While NFTs are currently most commonly associated with digital art, their potential use cases extend far beyond the art world. NFTs can be applied to a wide range of digital and physical assets, including collectibles, virtual real estate, event tickets, and even identity verification.
In conclusion, NFTs represent a revolutionary development in the digital asset space, offering a new way for creators to monetize their work and establish ownership and scarcity in the digital realm. As the technology continues to evolve, the potential applications of NFTs are likely to expand, creating new opportunities across various industries.
First, let’s see what is Cryptocurrency ?
A cryptocurrency is a new form of digital money. You can transfer your traditional, non-crypto currency money like the U.S. dollar digitally, but that’s not quite the same as how cryptocurrencies work. When cryptocurrencies become mainstream, you may be able to use them to pay for stuff electronically, just like you do with traditional currencies.
Now, start with the introduction to NFT
BITCOINS have helped create a new world of digital currencies and now all attention to something new is arising, non-fungible tokens or NFTs.
Wikipedia says about NFT:
A non-fungible token (NFT) is a unit of data on a digital ledger called a blockchain, where each NFT can represent a unique digital item, and thus they are not interchangeable.NFTs can represent digital files such as art, audio, videos, items in video games and other forms of creative work (wikipedia)
So, what does non-fungible token or NFT mean?
Non-fungible more or less means that it’s unique and can’t be replaced with something else. for example, your house is non-fungible. if you trade it for another house, you get something completely different from what you have. On the other hand, a bitcoin is fungible — trade one for another bitcoin, and you’ll have the same thing.
A simple NFT meaning is that it is a token, or unit of currency, that is non-fungible, or unique, as it cannot be exchanged for something else. NFTs can represent digital or physical assets.
How do NFTs work?
most NFTs are part of the Ethereum blockchain. Ethereum is a cryptocurrency, like bitcoin or dogecoin, but its blockchain also supports these NFTs, which store extra information that makes them work differently.
they can really be anything digital (such as drawings or music), but a lot of the current excitement is around using the tech to sell digital art.
What are some examples of NFTs?
Garbage Pail Kids: an iconic cult-classic collectible since the 1980s reimagined as NFTs
I can right-click and download a million-dollar artwork! what can explain that? ( see more)
William Shatner: the legendary actor whose roles include Captain Kirk in Star Trek, who released personal memorabilia to the public as trading cards.
CryptoKitties : the “OG” popular NFT series that skyrocketed NFTs to popularity back in 2016 and even though they quickly fizzled out, they are one of the most recognizable names in the NFT world since they were the first to be successful.
Blockchain Heroes : an original trading card series featuring the likenesses of personalities in the crypto and blockchain space
I can click-right and download a million-dollar artwork! what is up with that?!
That’s right! You can. But NFTs are designed to give you something that can’t be copied: ownership of the work (though the artist can still retain the copyright and reproduction rights, just like with physical artwork) To put it in terms of physical art collecting: anyone can buy Nyan Cat. But only one person can own the original.
A few months ago, a blockchain company sold an artwork by Banksy — a British street artist — at $95000 digitally.
You might say that a photo can be stored on a computer and then sold to several people because it is a digital image; however, what if it is not the case? Will the photo become valuable if it belongs to only one person? This is where the legend of NFTs begins.
A non-fungible token (NFT) is a unique digital asset that raises a few new questions.
How did Banksy sell the paintings? This institute explains that the physical component of an artwork can be deleted to transfer its NFT existence as the digital artwork at the price of the genuine physical art to an NFT!
In simpler terms, this (physical) artwork is valuable because it is one of a kind in the world. Now if the genuine artwork is eliminated when its virtual image remains in the transferable possession of only one individual, will its value be equal to that of the physical artwork? The NFT says yes.
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what’s the point of paying thousands of dollars for an NFT?
People have been paying hundreds of thousands of dollars for these NFTs. NBA Top Shot, a platform created by Dapper Labs in partnership with the basketball league, attracted $147.8 million in sales in the last seven days, according to NFT data tracker CryptoSlam. The service lets users buy and sell short clips showing match highlights from top basketball players. The total value of NFT transactions quadrupled to $250 million last year, according to a study from NonFungible and L’Atelier.
It might sound ridiculous but the explosive market of crypto-collectibles and crypto-art is no joke.
it does sound absurd a little!
yes! I know! it’s not made for everyone. but let be honest, it’s simply a new way of collecting digital art in a world that is becoming more digital every day. But all I can say is that I have accepted that this new space is here, and that has helped me see the value and creative opportunity that is available in the NFT space.
What does the future hold for NFTs?
For NFTs the true potential is yet to be uncovered. Whether big industry players in art, design, or fashion will buy into it or not is also yet to be seen. One thing is for sure, NFTs did open the door for many digital artists to be identified and valued, and the smart contract functionalities of the blockchain technology will be used in future evaluations.
What are the benefits of NFT art?
Galleries and auction houses are simply curated marketplaces, and the need for them will never go away. They may look different over time, but their core function and purpose will remain the same. We can see a huge increase in the demand for digital assets, especially as we start living more in the digital space. This will only continue to grow. As the digital world becomes more popular and you will see a huge difference art world!
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