Blockchain and NFT Tokens have brought about a major change in the digital world. Managing to implement that characteristic of originality and scarcity that exists in the real environment and that is so valuable for sectors such as art or collecting.
And it is that art has always been characterized by the search for the unique and the incomparable. With the NFT blockchain, it is possible to maintain that factor in the digital world, being able to avoid the reproduction and copy facilities that a digital environment offers.
What are NFT Tokens?
These acronyms correspond to “Non-Fungible Tokens” and they are digital assets, intangible goods to which a certain value is conferred. Unlike cryptocurrencies, in which all tokens are created equal, each non-fungible token is unique, original, and indivisible. And it is that the NFTs have digitally verifiable properties, just as the nodes of the blockchain have.
Although there may be copies (in fact, the owner can share the work online), it can always be certified that he is the sole owner of the original work. Similarly, if you buy one of these works, it is completely yours, not like when you pay for a license to listen to a song. In addition, these tokens, when registering on the blockchain, cannot be destroyed or deleted, and of course, they cannot be replicated either, they are unique. Its verifiable nature makes it perfect for the art world: the Ethereum network keeps all the traceability of the asset, from its original creator, to whoever bought or sold it and who is its current owner.
NFT Crypto Art and other applications
Just a few days ago the first fully digital artwork, “Everydays: The First 5000 Days” by artist Beeple, was auctioned and sold for nearly $ 70M. The work is a collage of digital creations that places its creator among the most sought-after living artists. He is joined by other artists, such as the one behind the pseudonym Pak, who has already sold 1,643 works of digital art, while Trevor Jones, considered a traditional artist, has incorporated the digital world into his collection, which has reported more than $ 4.6M.
It seems that the crypto art is making its way, and indeed offers great opportunities on such hotly debated topics as copyright. These tokens offer the possibility of achieving sustainable income through the use of smart contracts (digitally encoded contracts that are self-executing when certain conditions are met). This offers artists the opportunity to profit from the resale of their artwork (often referred to as secondary market sales), something the trade has been seeking for a long time.
As in reality, NFTs are unique and can vary in their rarity, desirability, and usefulness. But what is it that makes them so valuable? The premise is simple: NFTs are worth as much as someone is willing to pay for them. But it’s not just the art world that is benefiting from those tokens. Other uses that are being given to these tokens are:
- Collectibles. In this sense, the digital Pokémon cards or the crypto kittens. The avatar of a cat cost $ 115,000.
- In the gaming industry, NFTs can represent objects such as weapons, power-ups, vehicles, or characters. Also land ownership, so that the owners of these virtual lands can build and monetize their plot, for example, by renting it out to other players.
- Domains: Tokens represent the ownership of a specific crypto domain.
- Memes: Nyan Cat, the famous flying fato that leaves a rainbow trail, was sold
on the Internet with cryptocurrencies worth up to $ 580,000.
This is how NFT Tokens have become one of the fastest growing trends in the digital market, generating about 250 million dollars (210 million euros) in 2020, but we have to be clear about one thing, their utility is not only limited to collectibles or memes. The NFT of a bottle of wine, for example, can benefit the tracking of its origin, production and sales, making the commercial interaction between the producer and the buyer more efficient.
Another of the most interesting use cases for NFTs is identity management. Let’s imagine that a physical passport must be presented at each point of entry and exit on a trip. By converting each passport to NFT, each will have its own identifying characteristics, which simplifies the identification process. Therefore, its usefulness for digital collectibles must be distinguished from unique products that can be physically reflected, as in the case of Beeple, which solves the problems of “signature” and authenticity that departments such as network art or design have hitherto had. digital.
We do not know if they will be just an ephemeral fashion or if they are here to stay. Today, creating NFT requires complex computing tasks, involving the entire network and making it more expensive. But the market is promising, with the appearance of new networks and the arrival of Ethereum 2.0, the problem of large commissions will be solved.
The NFTs have taught us that blockchain technology transforms and generates new and incredible opportunities to sectors that a few years ago would not have crossed our minds.
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