NFT (Non-Fungible Token)
NFT (non-fungible token) is part of blockchain technology. Almost all world fields have adopted NFTs in recent months, which is the reason for their growing popularity. From the National Basketball Association (NBA) to musicians, artists, and even Twitter’s owner uses NFTs to sell video highlights, digital artwork, and Tweets, respectively. The idea behind NFTs is the same as owning an asset, but in this case, you own digital assets, or you get the feeling of owning a digital asset.
According to the producer and DJ Justin Blau, people need to think differently about NFTs; the main thing that gets people excited is the feeling of ownership. People are buying NFTs and participating in their fast-growing popularity. For instance, the first NFT linked digital art from Cristie’s auction house sold it for $69 million. Cristiano Ronaldo, one of the huge names in the soccer world, his digitally collectable card was sold for $289,000, and an NFT art released by DJ Steve Aoki was sold to former T-Mobile CEO John Legere for $888,888.88.
What is an NFT?
Metaphorically NFT means a certificate of authenticity, As you buy some precious item in real-life and receive a paper stating its authenticity. NFT is the same thing for digital assets, but it’s a unique string of characters instead of a paper. For instance, digital art created by actress Lindsay Lohan has NFT 0x60f80121c31a0d46b5279700f9df786054aa5ee5. This string is connected to the Blockchain, and the same way bitcoin is connected to it. But the difference between Bitcoin and NFTs is that bitcoin is fungible, which means several identical bitcoins are available on Blockchain. Still, NFTs are non-fungible, meaning each one of them is unique.
On Blockchain, several computers work together to create a shared digital ledger that can’t be changed with one computer. All the computers do complex calculations together to create a secure and unchangeable document. This is why Blockchain is perfect for creating unique and secure documents that can’t be changed. This resulted in the creation of non-fungible tokens.
Who has NFTs, and where can you buy them?
Anyone can create NFTs, even you can create NFT, but it doesn’t mean that anyone would buy necessarily buy it. Let’s take an example of the NBA’s Top Shot, a digital platform with its trading cards, which are NFT linked to track ownership. NBA collaborated with Canadian Dapper Labs to create Top Shot. Top Shot is selling several digital packs of cards. If you buy one of these cards, there will be NFT connected with it, authenticating your card’s originality. Dapper Labs will track the ownership on Blockchain, and after that, you can showcase your cards online.
Top Shot’s cards are very popular, and each pack of cards is selling for thousands of dollars. You can even create your pack of cards similar to Top Shot’s cards, but no one will buy it, and NBA can also sue you for doing so. Several artists have reported that many NFTs connected to their artwork are available online, which they didn’t authorize.
Can you make a copy of NFTs?
Considering the example of NBA Top Shot’s pack of cards, you can also copy these cards, but no one would buy them. You can copy any NFT related artwork, but it would be the same as copying an artwork in real life, and when you copy an original, there are fewer chances that people would buy it from you.
Some people are saying that NFTs are just a short-lived trend that will be over soon. But apart from NBA’s Top Shot, there are several other applications of NFTs available. For instance, Twitter’s CEO Jack Dorsey recently put the first tweet on Twitter back in 2006, on auction as NFT. The NFT bidding on this first tweet was closed on $2.6 million.
What are NFTs used for?
You can use NFTs for anything or nothing. It is more like a collection of likeable items with which people have emotional attachments, and Some people buy NFTs just because they want something to own that they like. The concept is the same as collecting artworks, music albums or vintage posters.
According to Justin Blau, NFTs are emotional attachments to artworks in the digital world. When people buy something, the reason behind that is their emotional attachment with that certain art piece, and they don’t think about the price of a specific item that fulfils their emotional needs. NFTs do that by providing digital assets that people like and can own.
Many people are now using the NFT trend by selling and buying digital artworks. However, for people who like to collect things and show them off, several companies work to make people display their NFTs at their homes or offices.
Is there any benefit for the artists too?
Artists whose artwork is being sold as NFTs are also making money through it. In music and artwork, NFTs are enabling artists to get benefits from their artworks too. Using NFTs, artists are discovering new ways to make some extra money. For instance, Shawn Mendes is selling a digital version of his guitar, necklace, and vest as NFT so that his fans can later use these items on their digital avatars. Moreover, artists can build royalties for each of their art pieces, which means that the artist will get a cut from the deal anytime the artwork is sold or bought.
Shawn Mendes’s manager Andrew Gertler revealed that selling digital art pieces as NFTs is beneficial for the music industry in many ways. The selling of tokenized goods has created many opportunities for several musicians to make money during the time of the global pandemic.
A new way of selling artworks has been introduced to the world in NFTs, which are connected to several art pieces and work on blockchain technology. Every NFT token is different from the other, and each has a different authenticity address from the other. Several big industries are using NFT-linked tokens to make money. It is just like making a collection of your favorite items but in digital forms.