WHAT’S UP WITH NFT?
Beeple’s piece “Everydays: The First 5,000 Days” was eventually sold for $69.9 million dollars.
Let’s understand the concept
A non-fungible token (NFT token) or non-fungible token is like a dollar, which can be issued in endless circulation, but each of them will remain unique. For example, if President Lincoln had a mole in a special place on each of the dollar bills, or a new hairstyle every time. At the same time, the funds retain their solvency. The same parallel can be drawn with the ruble, it does not change the essence.
What Non-Fungibility Means?
The non-fungible token remains a cryptocurrency, although it has a unique difference from the same bitcoin – non-fungibility. An NFT token exists in a single copy, has an independent value, and cannot be divided or counterfeited. It is because of these properties that it can be attached to any property, for example, physical, that can be touched. And also digital, which is in the Internet space.
“If you are an artist and still don't use NFT (Non-Fungible Token), you are potentially missing millions of dollars.”
― Olawale Daniel
How the NFT token will change the Internet space.
It turns out that the NFT itself is a digital property, the ownership of which can be publicly verified using the transparency of the blockchain. It gives the NFT token the properties of openness in verifying transactions and authenticity, in addition, protecting the token itself from outside influences with further change. On the Open Sea website, you can study all the data about any NFT token, the history of its purchases, the change in the sale price, and each of its owners.
Prior to its appearance, art on the web was not as valuable as material art. All for one simple reason: the ability to be copied, which means – to be stolen and multiply reproduced. Previously, it was not so easy to prove who exactly owns this or that work, but now the creative industry in the Internet space will be able to improve that without losing its value. It will be easy for authors to prove the authenticity of their work. This will allow any kind of art to match the physical in terms of significance.
With the help of the blockchain and the NFT token, art on the network can be owned and even collected.
What exactly makes a difference?
All digital resources are now transmitted in a simple manner. If I want to send a picture to my friend via any messenger, then first this photo gets into his database. A copy of the photo is created there and then another copy, from the existing one, which my friend will receive. This principle can be easily traced by how the quality of photos deteriorates after they are sent in private messages on WhatsApp, for example. This system destroys the concept of the individuality of creativity because, with one shipment, two whole copies are created.
NFT token technology completely eliminates the concept of “copying” from the entire process. A special token tied to your pic is transmitted through the blockchain communication channels, not being copied, but by the original, unique object. The person who sent you the token immediately loses its ownership and all rights of it are transferred to you.
This piece of work actually worth millions of dollars
In what areas can NFT be used?
Absolutely in any. Its great popularity was provided by artists, whose paintings, art objects, and even gif-animations are sold for a lot of money. At the end of February, one of the 3D artworks by the artist Beeple was resold for $ 6.6 million, although the author originally sold it for $ 582,000. Later this year, another Beeple’s artwork “Everydays: The First 5,000 Days” was sold on Christie’s for $69.9 million, shattering all digital-art records.
“Beeple is looking at his whole body of work as it’s presented on Instagram as a kind of Duchampian readymade”
― specialist Noah Davis
Before creative people contributed to the formation of the popularity of the NFT token, the gaming industry occupied 40% of the total number of tokens on the sites. Now it is featured in industries such as real estate, game collectible cards, domain names, and other kinds of collectibles. For example, in real estate, the digitalization of assets will simplify their transfer from owner to owner, because you no longer have to sign an unnecessary heap of papers.
Here are a few big brands that are already merging into NFT technology: Nike, Samsung, and Formula 1. Samsung, for example, created a cryptocurrency wallet for its smartphones that allows you to store NFT tokens.
Nya!
Let's summarize.
Non-fungible token technology will develop at least in terms of ownership rights in a particular area. It will be able to simplify the process of converting physical assets to digital and make it easier to extract the maximum profit from this at the lowest cost.
Although there are a lot of saying that each NFT works on the principle of financial pyramids, there’s not any actual proof to support that statement. To put it simply, NFT trading is just a modern-day Digital Art Gallery. But anyway, before investing your funds there, it is worth weighing all the possible risks.
