The Amazing NFTs or Non-Fungible Tokens
NFT or “Non-Fungible Tokens” are the latest cryptocurrency marvel. Every day we hear something exciting from the crypto world. At one point it gives us money-making and investing opportunities, however, it’s not only that. Blockchain technology is growing rapidly day by day and providing solutions in all industries. Whether it’s a financial solution, gaming, sports, or crypto domains.
What are Non-Fungible Tokens?
Non-Fungible Tokens, specifically, where “Non-Fungible” means something unique and cannot be replaced. NFT’s convert Digital pieces of art and other collectibles into unique, one-of-a-kind, verifiable assets. These assets can be traded on the blockchain. In actuality, it is a unit of data stored on a digital ledger, called a blockchain. This certifies a digital asset to be unique and therefore not interchangeable.
Non-fungible tokens are becoming mainstream now. Especially after Christie’s auction house sold the first-ever NFT artwork for a huge amount of $69.3 Million. This was a collage of images created by digital artist, Beeple. Since then payoff has been huge for many artists, musicians, influencers, and investors who are spending Millions to own NFT versions of digital images. Another example is Jack Dorsey’s first tweet which is now bidding for $2.5 million, a video clip of a LeBron James slam dunk sold for over $200,000, and a decade-old “Nyan Cat” GIF went for $600,000.
NFTs can be used to represent items such as photos, videos, audio, and other types of digital files. Access to any copy of the original file, however, is not restricted to the buyer. While copies of these digital items are available for anyone to obtain, NFTs are tracked on blockchains to provide the owner with proof of ownership that is separate from copyright.
The Year of Non-fungible tokens
Undoubtedly, 2021 is now being considered the year of NFTs. There has been an enormous curiosity about using NFTs. Various Blockchains like Ethereum leading the way. Flow and Tezos have their own standards in support of NFT’s ensuring that the digital item represented is authentically one-of-a-kind.
Simply, NFT can be anything, digital art, drawing, music, video and as mentioned above, Tweets, that are available digitally
Anyone can copy a digital file as many times as they want, including the art that’s included with an NFT. However, the specialty of NFTs is that they are designed to give something additional that can’t be copied i.e. the real owner of the work.
To understand clearly in terms of traditional art, anyone can buy a Monet print but only one person can own the original.
NFT Market value
Remarkably, the NFT market value increased many folds in 2021 reaching up to $22.5 billion whereas it was only $250 Million in 2020. Seems unbelievable, right? But trust me, it is, and it’s increasing day by day.
The economic momentum NFTs have in the crypto market has exploded because of a trend toward digital collectibles
NFT’s can be in various formats explained briefly below
Digital art is an artistic work or practice that uses digital technology as part of the creative or presentation process. Such artwork was adapted at the earliest because of the ability of Blockchain technology to assure the unique signature and ownership. Various art pieces sold at very huge prices, few mentioned below:
|Beeple||Everyday – The First 5000 Days||$69.3 Million in 2021|
|Dylan Field||CryptoPunk #7804||$7.5 Million|
|Dylan Field||Ape, Fedora #6965||$1.5 Million|
|Krista Kim||Mars House||$0.5 Million|
|Ja Rule||Portrait of Fyre Media logo||$.12 Million|
NFTs can represent collectibles like card collections, and tickets, but in a digital format.
NFTs can also be used to represent in-game assets, such as digital plots of land, which are controlled by the user instead of the game developer. NFTs allow assets to be traded on third-party marketplaces without permission from the game developer.
Music & Musicians
Now for the musicians, as various social media channels like YouTube, Instagram or TikTok help them to market their music to their audiences, NFTs allow them to sell their music online. Musicians can tokenize their work on blockchains using non-fungible tokens. For example, Kings of Leon released their first album i.e. WHEN YOU SEE YOURSELF on NFT (Blockchain platform). These Non-Fungible Tokens went on to generate a reported $2 million in sales.
And then comes the Film, Motion pictures industry reacted a bit slower than others to the NFT craze. However, on March 13, 2021, Adam Benzine’s Oscar-nominated documentary “Claude Lanzmann: Spectres of the Shoah” became the first motion picture, documentary, and Academy Award-nominated film to be minted and auctioned as an NFT. Not only that, Legendary Entertainment will release an exclusive Godzilla vs. Kong Non-Fungible Tokens collection on the same day the film hit theatres and similarly many others coming up
Sports & Athletes
How can we forget sports? NFTs are becoming very advantageous for sportspeople & Athletes. In September 2019, NBA player Spencer Dinwiddie tokenized his contract so that others can invest in it.
Additionally, Dapper Labs, a blockchain technology-based company, has collaborated with the NBA to create “N.B.A Top Shot”, a marketplace for digital highlight clips.
In March 2021, pro tennis player Oleksandra Oliynykova offered prospective NFT buyers the lifetime rights to part of her right arm.
In 2019, Nike acquired a patent that allows for blockchain technology to attach cryptographically secured digital assets in the form of NTFs to physical products, such as a pair of sneakers, under the name “CryptoKicks”.
NFTs challenge the norms of contemporary art with an approach to creative expression that is entirely digital and verifiably unique thereby pushing the art world into new territory.
How can I buy and sell Non-Fungible Tokens?
There are several marketplaces specifically around NFTs, which allow you to buy and sell. A few of them are OpenSea, Rarible, Superfarm, Ethernity, Enjin, and Nifty Gateway, but there are plenty of others.
You can very easily upload your artwork on any of these platforms and put them up for sale. Pricing can be in various cryptocurrencies but the most preferable is Ethereum. There are some charges involved in uploading your art which included platform fees and transaction charges. However, it’s worth trying. And the good part is that even if your artwork is sold various times among investors, every time it is sold you will get the royalty. Sounds good?
Blockchain domain names use blockchain protocols. This system allows domain owners to control their domains using private keys. Unlike traditional domain names, no oversight organization oversees these domains.
There are various practical applications. While DNS servers are spread all over the world, the system itself is centralized and controlled by ICANN. It’s, therefore, possible for ICANN to censor individuals, or cooperate with authorities to achieve the same result.
In contrast, blockchain domain names are permanently etched into a public registry. They can’t be purged, modified, or censored by any third parties. As such, they provide an avenue for websites to fight back against censorship, effectively protecting freedom of speech.
Another feature of blockchain domain names is that they can link to cryptocurrency wallets instead of websites. Asking for payments via “yourname.crypto” is more convenient and easier to remember than “1NVWiyvVLAuCoxzQ6Ujy4UDpkgRwe8VPwW.”
Unstoppable Domains is a company considered the pioneer of the Crypto Domain marketplace. Not only that they allow you to invest in Crypto domains but also provide a very smooth interface to place them for sale at NFT giants like Open Sea which gives a lot of opportunity to the investors to make money
Non-Fungible Tokens, An opportunity or….
So, what do you think about NFT?
Is it something you look forward to investing in? or you have rolled up your sleeves and are ready to put up your digital art or music piece for sale. Whatever is in your mind this is a booming market and worth checking out.
Hopefully, few deserving artists can make good money out of it without asking agencies, recording companies, or producers to help them out. But to close this article, 2021 IS THE YEAR OF NFT’S
Check out our article “Making Money Online“