NFT MEANING What are Non Fungible Tokens nft
NFT MEANING What are Non Fungible Tokens nft
 |
| NFT meaning |
This is Genesis, the first crypto which retails for almost $115,000. In this Ethereum blockchain-based game, players can breed and trade digital cats. Each cat itself is an NFT with a unique combination of features stored in a string of codes, making some cats rare and expensive. The global NFT market started to skyrocket last year with more than 200K participants. But really, what is NFT? [Intro Music] NFT itself is a token that cannot be exchanged because each token is unique and has a different value. The word fungible itself means "interchangeable". Currency,
for example, is a commensurate token because it can be exchanged without changing its value. On the other hand, non-exchangeable tokens are exclusive, and thus, every NFT is exclusive to its owner. Think National Monument. It doesn't matter if many miniature versions are made, there will only be one real monument. Now the Government image is selling digital renderings of the monument. However, as a digital asset,
these files can be easily distributed. This is where NFT comes in. This is Nina, a cryptocurrency-rich millionaire. Nina wants to have a rendering of the monument, especially the original version. So instead of buying the file, he bought the NFT of the file, which the Government had made available for sale on the NFT market, leaving Nina the sole owner of this rendering file. Through this marketplace site, any digital
artist will be able to sell their art, and anyone can buy NFT. Of course, the Monas.jpg file will still be widely distributed on the internet, because what Nina bought was not the file itself, but Basically a digital certificate of authenticity for the file. This receipt is then “printed” on the blockchain system, which will distribute it and inform every computer connected to the same cryptocurrency network. Once a receipt is in the blockchain, it cannot be deleted, duplicated, or tampered with. Like a receipt engraved on a rock face, a blockchain is like an immutable digital
ledger, which cannot be changed, so its contents will be stored there forever. This is possible because the general ledger is maintained by thousands of computers worldwide. Thus, Nina's NFT purchase transaction will be permanently recorded, and everyone will have the same record stating the owner of the file. NFT itself is a digital asset consisting of a unique line of code stored in the blockchain system, which includes all
kinds of encrypted information that ensures the rarity and exclusivity of the digital asset. Thus, NFT exists to create a sense of exclusivity, and proof of ownership. Now, these digital assets can be Basically anything, including this video. how one can get a Mona Lisa poster, but
there will only be one real one. The NBA has even started selling these NFTs in the form of highlight-reel collector "cards". Lebron James' dunks compilation video, for example, sells for 200 thousand dollars. So imagine this NBA Top Shot “game” as when we were kids, collecting pokemon cards, but all the cards would be digital. The value of each card is determined by the level of supply and demand in the market,
as the NBA only makes a limited number each time creating a rarity, so oftentimes, buyers have to join the queue. So far, the game has made over $230 million in gross sales. On the other hand, NFT is often called in because of the work of art, and this once happened, before NFT, there was never a way to verify the originality of the digital artwork. NFT also allows artists to create unique works for their fans. The NFT marketplace is also able
to bring artists closer to their fans financially, as it eliminates the need for middlemen, so artwork can also be sold at a higher price. New and young artists also tend to sell their work for too low a price. A few years later, buyers resell it for a huge profit. With NFT, digital creators can ensure that if their work is popular and their value increases, they will benefit. In their NFT, artists will also
be able to write a special clause, which digital artist Beeple does, when their art sells for $69 million. This clause ensures that Beeple will earn 10% royalties from any consequent resale. But why do people spend so much money to buy these digital assets? Some NFT buyers are collectors and fans looking to support artists while showing off on social media. Many buyers also buy NFT for investment, trying to make a profit as
cryptocurrency prices soar. Others see it as a form of entertainment. On the other hand, the purchase of NFT will give buyers a sense of satisfaction because they have original goods. Nonetheless, despite the popularity of NFT, many also lament the environmental impact that occurs because cryptocurrencies require special computers called “miners” which require a lot of electricity. Each of these specialized computers will then compete to solve complex algorithms, and the miner who completes it first will be awarded virtual coins or cryptocurrencies.
Every year, Ethereum mining consumes as much electricity as Ireland. Cryptocurrency mines or operations are also popping up all over the world. Wherever electricity is cheap, a row of high-powered computers will turn energy into money. Now, if any digital art could be easily converted to NFT, what are the limits to what would qualify as "art"? Whether this is just a trend or not, NFT has illustrated the great speed at which the digital economy is innovating and the high public interest in cryptocurrencies, which, despite the higher risks, can create even higher opportunities.
Post a Comment