Non-Fungible Tokens: Art or Technology?
A few years back the launch of cryptocurrencies brought a breakthrough in technology. Today, we have a new trend that has got all the attention. It is known as NFT or Non-fungible token. People have developed an immense interest in this new technology. One who possesses an NFT is said to have a unique collectible that is worth a lot of money. In this article, we explore all about NFTs and how they operate to give you an idea about this trending technology. What are Non-Fungible Tokens? NFT is a cryptographic token or cryptocurrency that depicts a variety of items. Things may or may not be tangible. The term non-fungible has been chosen to imply the character of the token that differentiates it from all other cryptocurrencies. These assets are valuable because of their unique nature that cannot be found anywhere else. Unlike bitcoins which can be traded for other currencies, non-fungible tokens are distinct and have no replacement. Each NFT token possesses defining information that makes it easy to recognize it from other NFTs. With NFTs, the possibility of faking the collectibles is ruled out because the original owner can be easily tracked. NFT trading also cannot be done conventionally because of their unique identities. Even when the tokens are on an identical platform or collection, simple exchanges are not possible. The first-ever NFT that was released in 2017 was called CryptoPunk. It was on the Ethereum blockchain. Soon after came the CryptoKitties. In the following years, many other brands launched NFT on the Ethereum blockchain and have raised millions of dollars. How does NFT work? The NFT tokens are based on blockchain technology. After the creation of a non-fungible token, it is put on the blockchain. This is followed by time stamping the NFT. It is like a digital certificate that authenticates the item on the blockchain. It is also a way to own something digitally. If you are exchanging NFT, the coding files associated with it are also transferred over the blockchain network. It shows the current owner of the NFT. Currently, the Ethereum blockchain maintains the greatest amount of non-fungible tokens. The ERC 721 and 1155 are two standards used to generate the NFTs. These are easily deployable. It is also possible for all other blockchains to implement their NFTs. Key Features of NFT
• Unbreakable Unlike bitcoins that can be broken down into smaller values, NFTs exist as one piece only. • Unchangeable The NFT information is saved carefully on the blockchain that makes it unlikely to face any destruction, duplication, or deletion of the token. The ownership is permanent, so one can only possess NFTs owned by the creator. • Ownership verifiable The ownership records are forever stored on the blockchain. It implies the owner can be tracked whenever it is necessary to verify the claim of a digital collectible. • Not interoperable The NFTs on one platform is not operable on other platforms. For example, the game based on CryptoKitties will not support the CryptoPunk tokens. Various applications of NFT The non-fungible token can be adopted for anything digital. It has applications in gaming, music, art, and much more. The crypto industry is still on the lookout for the best way to use NFTs. The digital collectibles in online games are popular NFTs that have generated a revenue of 200 million dollars. Many musicians and singers have been selling their music as NFTs. This helps them maintain ownership and prevent the original work from being copied. The field in which NFT has gained the most popularity is digital art. Selling art in the digital format has become a trend among multiple artists. Unlike the physical art form that is susceptible to damage, the digital form of art can be protected through NFT. Also, authenticity is ensured. Artists do not have to depend on the auction halls or other third-parties for selling their work. Trading digital art directly helps the artists to earn a good value. If the artwork has royalties added to it, the one who created the art earns a certain amount of money every time the owner changes. Given the unique quality of NFTs, the market for NFT digital art or other collectibles are at an all-time high. This means some NFTs can fetch a fortune to the owners. How to sell your digital art online? If you have an original piece of artwork, there is a market for you to sell the work and earn a good amount of money. There are multiple websites where you can easily sell your NFT at
whatever price you want. OpenSea and Rarible are two popular sites where one can sell digital art. Rarible is known to be a community-owned marketplace for NFT. Users can create or “mint” NFTs on this platform, sell their art, music, or videos as NFTs to direct buyers, and even trade digital collectibles. Opensea is similar to Rarible. It is one of the largest marketplaces to sell, buy and find out about the rare digital assets. The rates are usually in cryptocurrency. The scarcity of unique assets is what drives these marketplaces and they are estimated to grow significantly in the coming years. Major NFT artwork sales There have been multiple sales in NFT that have turned heads. These artists have generated large amounts of money by selling their work as NFT. A video by Beeple was sold as NFT for 6.6 million dollars at an auction organized by Christie. This event brought the name of the artist Mike Winkelmann to the spotlight as his work became the first standalone art to be auctioned. A musician named Grimes has been selling her work in digital form. She sold several copies of her artwork and earned 6 million dollars. The recent artwork that is getting all the attention is the Nyan Cat. Chris Torres, the artist, decided to auction the digital form of the Nyan Cat to mark its tenth anniversary. The GIF was priced at 300 Ethereum and was sold for 560,000 dollars.