3 June 2023
Everything You Need To Know About NFT
Blockchain is best known for Cryptocurrency and it is growing in popularity and adaptation. But that isn’t all to the blockchain, digital artwork which is also called “NFT - Non-fungible tokens” is the next new thing rising tremendously. These NFTs exist on blockchain technology that proves the ownership of the digital artwork. Many artists and celebrities are making profits by selling the ownership of the digital image.
In February 2020, Chris Tores had minted a GIF of the famous internet meme, which was sold for $470,000 worth Ethereum. Wherein, Grimes sold 10 digital images artwork worth $400,000. Grimes is also known for selling his digital artworks under 20 minutes for $6 million worth.
So what are NFT and the whole hype about it? In this blog, we are going to discuss Everything You Need To Know About NFT:
NFT - Non-fungible token is a digital item that states ownership of the person who purchases the digital artwork. Basically, NFT are like a collectible digital asset, a way to buy and sell digital artwork which holds value as a form of cryptocurrency and is based on blockchain. It is not mutually interchangeable, and due to its unique ID, it cannot be replicated, resulting in the scarcity and ownership of the artwork. NFTs exist on the blockchain; consequently, they are indestructible and can be traced back to the creator. However, unlike other crypto assets, they are not divisible.
Also Read, 13 Steps To Create Your Own Ethereum Token
NFT are unique cryptocurrency tokens based on blockchain; the technology maintains a permanent public record that states the ownership of the artwork, authenticity and transaction history that cannot be altered. The tokens also store information that enables them to form in art, video, music, image and so forth through the form of videos, MP3s, JPGs, GIFs and more. The governance of ownership verification and managing the transferability of the NFTs are coded with smart contracts. It can also be programmed further to add functions and applications. Anyone can participate in creating and selling NFT on the marketplace that best suits their needs.
Blockchains like Ethereum (ERC-721 and ERC-1155 smart contracts standards), Wax and Flowchain can be used to manage NFTs. However, buying NFT depends on what you want to purchase and the platform that offers the artwork. You would need a platform-specific wallet (the platform you choose to buy/sell artwork) and fill-in with crypto. Platforms like OpenSea, SuperRare, NFT ShowRoom, Axie Marketplace and many more provide the NFT services.
Many online artists do not receive any recognition, attribution and payment for their artwork; NFT is a way to make money wherein the creator receives his/her cut through the artwork’s royalties. As Chris Torres - the creator of Nyan Cat said, “It gives power to the creator,” “The creator originally owns it, and then they can sell it and directly monetize and have recognition for their work.”
NFTs are also an attractive bandwagon opportunity for the brands’ revenue stream. Taco Bell sold GIFs and images based on taco-themed on one marketplace wherein 25 sold out in 30 minutes, and each NFT held a gift card of $500, which the original owner could spend. While now, TacoCards was sold for $3,500 on a secondary market without the gift card.
Also Read, The 4 Art-Inspired Crypto Creativities
On the contrary, many find the concept of NFT as even if the digital artwork talks about ownership, it does not really stop one from owning it. For instance, you can still download the content and distribute it.
V Buckenham - a digital artist told the Guardian, “I don’t find NFTs enticing as a platform for releasing art on,” “The point of owning a piece of art is to look at it and enjoy it – and buying an NFT doesn’t do anything to help you do that. An NFT is just an entry in a fancy database somewhere asserting that you ‘own’ the artwork. The only thing it’s good for is allowing you to sell on that database entry to someone else later on.”
NFT is also being criticised for its impact on the climate since its creation needs an enormous amount of energy. According to cryptoart.wtf - a site set-up that calculates the NFT’s carbon footprint, stated that one piece called ‘Coronavirus’ for its creation consumed 192 kWh. On the other hand, many artists are working on making an effort to create carbon-neutral artwork
NFT is like a new stream added to the blockchain spectrum, and just like any other hype, it is only time to tell the future of the non-fungible tokens.
Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.