By 2021, there will be a massive explosion of the concept of Non-Fungal Tokens (NFT) around the world. While many familiar with the crypto world have an idea of what they really are, for most of us NFTs are just as meaningless as some kind of magical crypto.
Think about it – a collection of 5,000 paintings sells for $ 69 million. This has never happened before in the history of the art world !.
So, what is this NFT?
Non-fungal-tokens, or so-called NFTs, are essentially cryptocurrencies, just like any other tokens (yes, they’re actually just tokens). However, these tokens cannot be duplicated, copied or replaced.
Most crypto tokens are “fungal” like bitcoin so they can be duplicated and replaced.
For example, you have 3 BTC in your hand and you give one to your friend. Do you think your friend will get a bitcoin version of his own, no.
He or she will have the same bitcoin version as yours or in the hands of everyone in the world.
You can convert one bitcoin to another (ALT COINS) using exactly the same value and features. Only a new record can be created in the blockchain where the transaction is registered.
Even if you have one Rs 100 note in your hand and two Rs 50 notes, its value is Rs 100.
NFT is a UNIQUE ASSET that you can not transfer, replace, or split into smaller sections
Anything can be a digital asset, including:
Collectible cards
An Fan Tokens – (FC Barcelona, Manchester United)
Photography
Images
Videos
Digital Art
Music
I’m sure you’re thinking right now. Can’t screenshot an image or download or copy a video from YouTube? Why pay so much for a digital image?
Let me ask you something. Can you go to the Louvre Museum and take a photo of the Mona Lisa and call it yours?
You know and everyone knows that. This is because it has no proof or history of creation (Proof of Authenticity).
NFTs are designed to give you something you can not copy:
Ownership of the work The artist may still retain copyright and reproduction rights, as in the case of physical artwork.
NFTs can only have one owner at a time. Blockchain Technology makes it easy to verify ownership and exchange tokens between owners. The owner or creator can also store specific information within them. For example, artists can sign their artwork on an NFT metadata.
In short, anyone can buy a print. But only the original one can own it.
Advantages of NFT
Artists no longer have to rely on galleries or auction houses to sell their art. Instead, it can be sold directly as an NFT, which allows them to maintain a higher profit margin.
In addition, artists can be programmed at royalties, so they receive a percentage of sales whenever they sell their art to a new owner. This is an attractive feature as artists usually do not receive any future income after first selling their art.
How to buy or sell NFTs?
There are many NFT marketplaces like opensea and rarible where you can buy and sell NFTs.
What can you sell as an NFT?
Anyway, it depends on the imagination of its creator. GIF, video, image, art, stickers. You can basically sell anything as an NFT.
You can even sell your tweets as an NFT, just like the CEO of Twitter did.
Does the NFT have a future?
For some people, NFTs are a crazy bubble with no future. But others claim it is the future of digital art. NFTs have changed the way people buy and sell goods. Current digital art is one of the most sought after items in the NFT market.
