Are you on the next level digital ledger, like buying a deed for land on the moon? When wealth and ignorance collide, NFT acts as a massive bobble and when it pops up you are looking for the diamonds in the rough. You are the one to fit in right!
The term non-fungible token has most of the information you need right there in the name. What does non-fungible exactly mean? It is that unique by which it cannot be replaced by anything else; Yes. It is that unique. For example, while a rupee or a Bitcoin is fungible — where one rupee or Bitcoin is the same as another — a painting or a song is not. You cannot exchange the Mona Lisa for The Scream as if there was no difference between the two paintings. Stairway to Heaven and Highway to Hell are not interchangeable songs. They are non-fungible. Haha!!
Some History To Look Back — NFTs
The real concept of NFTs has been in existence with us since December 2012, when “Colored Coins” was launched by Vitalik Buterin, the creator of Ethereum. Later, the emergence of Non-Fungible Tokens was reflected with the conception of Etheria in 2015, CryptoKitties in 2017, and Cryptopunks in 2017. These are some real NFT projects that marked the first turning point in the history of “NFTs” or the Non-Fungible Token. Fast forward to now, the NFTs Marketplaces have grown into a multibillion-dollar industry with more than $2 billion sales in the first quarter of 2021 and still growing.
What Can We Do With NFTs?
Most of the buzz around NFTs are to do with the sale of artwork in the form of these tokens, but NFTs can be anything digital. For example, Jack Dorsey, the Founder and CEO of Twitter, sold his very first tweet (which is also the very first tweet ever) for more than $2.9 million. A digital artwork piece by Mike Winkelmann aka Beeple sold for a whopping $69 million as an NFT.
The ever-increasing penetration of Non-Fungible Tokens (aka NFTs) has proven immensely beneficial for digital artists, enabling them to break through traditional norms and granting more economic power to them. By democratising the art industry, NFTs mark a new chapter for digital commerce amidst the ongoing pandemic, and this trend of technological capitalism seems to be long-lasting.
What Makes NFT So Dominating In The World?
One of the primary reasons why the NFT trend is so dominating is that privatisation of gain is followed by digital scarcity. The Non-Fungible Tokens hold the awesomeness of Blockchain Technology to certify the provenance, authenticity, and ownership of digital masterpieces.
Not only are they reflecting the Blockchain’s latest manifestation of value, but NFTs are reshaping the future of virtual art galleries by removing gatekeepers. This way, NFTs are pushing the concept of democratisation and digital scarcity for unique digital collectables while unlocking growth possibilities for digital artists.
NFTs — The Birth With The Extra Benefits
As a creator of art, the birth of NFTs could potentially give you access to markets that would otherwise not have been interested in your work. The novelty of the medium is such that people are willing to buy art that they otherwise would not have.
The other benefit to art creators is that NFTs are essentially lines of code, and so that code can carry anything. Several NFTs already include the provision that the original creator of the artwork gets a percentage of the price an NFT is sold for each subsequent time it is sold. This does not work for physical art.As a buyer, NFTs allow you to support new artists and, of course, give you the bragging rights of being the owner of a particular piece of art. As a speculator, NFTs work like any other artwork or rare commodity. Speculators can buy them on the hunch that their future value is going to increase.Let’s Delve Deeper Into The Non-Fungible Tokens:
Authenticity: NFTs, which are the digital versions of the unique physical masterpieces, are designed to function as the certificate of authenticity whenever traded digitally, as they cannot be interchanged with something else and reflect a digital uniqueness.
Ownership: NFTs represent the real-time transaction records of unique digital collectables captured using Blockchain technology. They are a one-of-a-kind digital collectable available in a large number of series that are sold by its owner in the digital marketplace through an auction.
Accessibility: NFTs are limited, indivisible, easy to transfer, and exclusive tokens that any individual can access by opening an Ethereum wallet with minimum entry barriers.
Paperless Transaction: As NFTs work by converting into a digital form, there is a better scope for paperless transactions. Also, the tokenization of digital assets has simplified the trading process.The Reality Hits Of NFTs
Like any other quickly evolving technology that offers innovative opportunities to individuals, the Non-Fungible Tokens have some significant challenges, potential risks, and reality hits that need to be tackled immediately.
But, the million-dollar question is what does the future of NFT-commerce look like? Will NFTs go up in value? NFTs look transformational for the future of digital trading, and there is no sign of slowing down. It has been found in many reports that the NFT marketplaces are quite concentrated and have a significantly less number of buyers. NFTs are yet to see mainstream adoption across many countries.
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