Non-Fungible Tokens, widely known as NFTs, are digital assets that can be considered as a form of cryptocurrency tokens. They’re not mutually interchangeable and have their own unique identity to them. This is different from the rest of the cryptocurrencies such as bitcoin.
When someone “mints” an NFT, they create a file that lives on the blockchain, which means it cannot be copy and pasted, edited, deleted, or otherwise manipulated.
The New York Times, working with IBM to create The News Provenance Project, has been looking at the rise of misinformation.
Investor and crypto-media analyst Jesse Walden has compared NFTs to a “digital passport,” in that they follow the media across the internet, bearing information that can be updated but never destroyed.
These tokens are vastly used to create verifiable digital scarcity and ownership. Several applications of these digital arts are crypto art, digital collectibles, and online gaming.
When you buy an NFT, you gain ownership of the content in question, but it can still travel freely across the internet, be viewed, listened to, or saved by anyone who wants to do so. At first, this might sound like it reduces the value of an NFT: What good is “ownership” of a work of digital art if everyone has equal access to it? However, in reality, the more a file is shared and seen online, the more cultural value it accrues.
The early applications were art and blockchain, because of the easy proof of authenticity they could provide. The possibility of mass production and unauthorized distribution of art through internet is prevented through this method. NFTs first made headlines in 2017 when Dapper Labs’ game CryptoKitties accounted for 95% of Ethereum network usage at its peak.
In the 2020 L’Atelier BNP Paribas, it is mentioned that the NFTs have frown to encompass over $250 worth market. NFT creators have already earned millions, and not so long ago, Grimes made $5.8 million in less than 20 minutes by selling her digi-collection of WarNymph on the Nifty Gateway platform. Platforms like Nifty Gateway, SuperRare, Foundation and Zora are quickly emerging as the leading players for creatives to monetize work in a digital world.
These collectors have profited extensively through these digital tokens. In the last week, an art collector has sold a 10-second video artwork for $6.6 million after the purchase of the Beeple project for $67K in October.
February has been explosive for NFTs. In the span of two days, online personality Logan Paul made more than $5 million selling NFTs, according to online video blog TubeFilter, and rapper Post Malone has hopped on the NFT bandwagon, adding a signature twist to the trend by offering fans who make a purchase the opportunity to play beer pong against him. In the music world more broadly, musicians have sold more than $4 million in NFTs.
As a result of their digitally enhanced royalty system, NFTs are a natural extension of the creator economy and the emerging world of fan economics that powers platforms like Patreon. Unlike a traditional memento though, when you buy an NFT, you not only put money in the pocket of that artist immediately; you also give them an untold number of future opportunities to make money down the road, all off one piece of art.
We hope to give you the latest updates as to where these NFTs and other cryptocurrency trends lead to, so stay tuned! For more interesting tech trends, marketing trends and news, visit https://vezolvemedia.medium.com.