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The world of NFTs: What are they?

The popularity of digital collectibles known as “NFTs” has soared recently. People are investing millions of dollars on digital collector’s pieces ranging from paintings to sports trading cards. Grimes, a musician, recently sold her crypto art for $5.8 million in non-fungible tokens, or NFTs, while Chris Torres, the founder of the popular internet meme Nyan Cat, recently sold a one-of-a-kind version of his viral GIF for 300 ethereum, or about $600,000. Mike Winkelmann, also known as Beeple, a New York-based artist, recently sold one of his works for $6.6 million.

So what exactly is NFT

Non-Fungible Tokens (NFT)

A NFT is a cryptographic token that represents something special and has a distinguishing feature. Non-fungible tokens or NFTs are a brand-new category of digital asset. These assets ownership is registered on a blockchain, which is a digital ledger identical to the networks that support bitcoin and other cryptocurrencies. Most NFTs are, at a high level, part of the Ethereum blockchain.

NFTs are one-of-a-kind digital assets, with each token denoting a distinct value. Owning an NFT is similar to owning a one-of-a-kind piece of art or a valuable artifact.

Example: In the real world, we will be having printouts and versions of the legendary artwork Picasso’s Mona Lisa, despite the fact that there is only one real portrait. Similarly, in the digital realm, several versions of an art may exist, but ownership remains with the individual that possesses the token, and this is the element that has lately sparked everyone’s interest.

 

 

Why are they so famous & their benefits?

For artists, NFTs have a means to promote work that would otherwise be difficult to sell. It can be beneficial for people who are interested in art collecting, buyer or art auctions. 

The coronavirus pandemic was a major contributor to the NFT boom. This is due in large part to stay-at-home recommendations, which resulted in people spending a lot of time on the internet and saving money by not having to commute or other expenses. According to a survey by NonFungible and BNP Paribas-affiliated consulting company L’Atelier, the gross volume of NFTs transactions quadrupled to $250 million last year. As per CNBC, “It is an obvious industry use case for NFTs,” said Lars Rensing, CEO of blockchain firm Protokol. “Trading cards and collectibles have always been a profitable revenue stream for clubs.”

Nonetheless, some artists and investors have expressed skepticism about the NFT space. Critics see it as yet another crypto fad, similar to the initial coin offerings of 2017, that will go away. “NFTs started in 2017. A lot of it was about speculation. What we saw in 2020 is the market is actually maturing.” Nadya Ivanova, chief operating officer of L’Atelier, told CNBC.

Is it possible to purchase this article or sources of the article, interview, video or any digital form as a NFTs in future? Answer is probably yes, anything digital could theoretically be marketed as an NFT.

 

 

 

 

 

 

 

 

Image: PIRO4D

*Disclaimer: Fyggex, does not give any guidance, advice or recommendations to neither invest or not in any available normal currency or digital currency directly or indirectly via any trading platform, exchange or provider. Our sole purpose is to make you aware of the related real or potential risks and opportunities so that you can make your own research prior to any financial decisions you may want to take. Past performance and position are not a guarantee of risk-free future returns.