One of the most vocal concepts in the technology world since last year has undoubtedly been NFTs together with the metaverse. In the process, we have witnessed people paying thousands or even millions of dollars for works that do not physically exist, and we continue to be. However, there is a fact that many people do not know exactly what NFTs are and what they work for. So in this article, we will try to explain the concept of NFT to you as much as we can, based on the relevant article by The Verge.
What Does NFT Mean?
NFT is actually an abbreviated version of the expression ”non-fungible token”. This phrase means that the thing in question is unique and cannot be replaced by anything else. For example, a Bitcoin can be exchanged or, in other words, exchanged. When you exchange one Bitcoin for another Bitcoin, you get exactly the same thing. However, a game card that is the only one of its kind cannot be changed. That is, when you exchange the playing card in question for another card, you get a completely different playing card.
In a technical sense, we can say that each NFT has a unique token on its blockchain. However, NFTs can be like a work of art with only one real version on the one hand, and they can also be like a work of art with hundreds of numbered copies on the other hand.
What is the Working Logic of NFTs?
Most of the very high-level NFTs are part of the Ethereum blockchain. Ethereum is a cryptocurrency like Bitcoin or Dogecoin. But the Ethereum blockchain also supports these NFTs, which store extra information that makes it work differently from an Ethereum cryptocurrency. It is worth noting that other blockchains may also implement their own version of NFT. Which is already available in NFT versions of some of them already.
What is the Purpose of NFTs?
The answer to this question varies depending on whether you are an NFT manufacturer/artist or an NFT buyer.
If you are an artist, NFTs offer you the opportunity to sell your work, which may not have much of a market under normal circumstances. For example, when you come up with an idea for a digital sticker that really sounds good, the most likely way to turn it into money is to put it up for sale as an NFT. In addition, if you enable it, there is also an NFT feature that allows you to be paid a percentage every time your NFTs are sold or changed hands. This feature also allows you to still benefit from your work if your work became popular after you disposed of it.
If we are going to approach the event from the point of view of a buyer or, in other words, an art collector, one of the obvious benefits of buying an art product is that it allows you to financially support the artists you love. This also applies to NFTs. Buying an NFT, in general, also gives you some basic usage rights, such as sharing it online, setting it as your profile picture if it is an image. In addition, it is worth noting that October of course, you will have the right to brag on social media and on the left about the fact that you are the owner of the NFT in question.
In addition to these, NFTs can function like other speculative assets (for example, a physical collectible) that you have purchased and hope to increase in value one day. In other words, any NFT can add up its value over time and thus you can profit from that NFT by selling it at a higher price than you get. Of course, let us also remind you that you are as likely to cause harm as with any speculative asset.
What Are the Products Worth Buying on the NFT Market?
NFTs can be anything that is digital: drawings, songs, videos and more… But at the moment, the NFT world is focusing on leveraging this technology to sell digital art in general. The focus of discussions on NFTs is on the evolution of art collecting along with digital art.
By the way, when Dec said that NFTs can be anything that is digital, we really meant everything. Even his tweets… because Jack Dorsey, the founder of Twitter, sold his first tweet as an NFT for about $2.5 million.
Are NFTs Evolving into Digital Art Collecting?
Considering the people who paid about $390,000 for a 50-second video created by Grimes or about $6.6 million for a video created by Beeple, we can safely say that some people think that NFTs will evolve into digital art collecting.
One of the notable examples of this situation was one of the digital works of art that Beeple auctioned and sold at the famous auction house Christie’s. This digital image that Beeple auctioned at Christie’s has found a buyer for exactly $ 69 million. This figure was $ 15 million more than the selling price of the famous French painter Monet’s painting “Nymphéas”, which was sold in 2014.
But at this point, there is an important problem: you can copy the digital art product contained in the NFT as much as you want. But NFTs are designed to give you something that can’t be copied: ownership of the work (but the artist can retain copyright and reproduction rights, just like in physical works of art). If we need to illustrate it from the point of view of physical art collecting, anyone can buy a Mona Lisa painting, but only one person can own the original.
Whoever actually owns the Mona Lisa painting can consider it a physical object. As for digital art products, any copy is literally as good as the original one.
Have NFTs Become Mainstream?
By this time, we have witnessed that major brands such as Marvel and famous people such as Wayne Gretzky have put their own NFTs up for sale. However, such brands and celebrities are targeting more traditional collectors rather than crypto currency enthusiasts with the NFTs they have issued. As a result, although there has been a strong interest in NFTs since last year, it is more accurate to say that CURRENTLY NFTs have not become a mainstream.
What Does the New Generation Think About NFTS?
Whenever it comes to the adoption of new technologies, the new generation is always taking the lead in this regard. Of course, this remains the case for NFT technology. Although an 18-year-old known by the name of FEWOCiOUS has stated that the total value of his NFT drops has exceeded $17 million, this is not an uncommon achievement. The New York Times newspaper spoke to several young people involved in the NFT business. Some of the young people said that they use NFTs as a way to get used to working on a project with a team or just to get some pocket money.
Can an Article Be Purchased as an NFT?
Of course, an article online can also be sold as an NFT, because technically everything that is digital can be sold as an NFT. Which, of course, has already been done. Quartz, the press organization that prepares news for the global business world and the economy, announced that it had sold its first NFT news article for $1,800 in March 2021. In fact, The New York Times newspaper has recently put an article up for sale as an NFT.
Can Any Physical Object Be Sold as an NFT?
By this time, some attempts had been made to connect NFTs to real-world objects, usually as a kind of verification method. For example, Nike has patented a method that allows verifying the authenticity of sneakers using an NFT system called “CryptoKicks”. In other words, although a physical object is not sold directly as an NFT, we have seen a number of examples of NFTs being integrated with physical objects. But this does not mean that a physical object cannot be sold as an NFT. Who knows? Perhaps something like this has already been done somewhere in the depths of the NFT world…
What Are the Popular Sunday Places Where You Can Buy and Sell NFT?
There are many Sunday places that allow people to buy and sell NFTs. But the three most prominent of these Sundays are OpenSea, Rare and Nifty Gateway.
Can NFTs be Stolen?
This varies depending on the situation. One of the most important advantages of the technology block chain, crypto currency or any transaction takes place every time a record of the disposal of the object and storing digital playback and processed, for example, is a work of art in a museum that can make it more difficult. However, cryptocurrencies have been stolen many times before. So this means that NFTs can also be stolen. However, this situation varies depending on how the NFTs are stored.
If you want to know more about the reliability of NFTs, it may be useful for you to check out the article available at the link here.
Where Are the NFTs Stored?
Just like cryptocurrencies, NFTs are stored in digital wallets. But at this point it is worth noting that the digital wallet must be NFT-compatible. However, it is very important that the digital wallet is also stored in a secure storage unit.
Which Cryptocurrency Is Used for NFT Trading?
And large part of the existing NFT Sunday places accept Ethereum in their trading business. But although this situation is largely up to the initiative of Sunday places, technically users who sell NFTs are free to ask for their preferred cryptocurrency for their work.
Are There Any TV Programs Related to NFT?
Musician Steve Aoki is working on a television show based on a character in an NFT drop called ”Dominion X”. On the website of the program in question, it is stated that this will be a series launched on the blockchain. In fact, the first short promotional video for this television program is also located at the popular NFT Sunday place OpenSea, and at the same time, hundreds of NFTs associated with the television program have been put up for sale here.
In addition, there is also an animated series called Stoner Cats, which uses Nfs as a kind of ticket system. This animated series is about “cats that go crazy”, and such notable actors as Mila Kunis, Ashton Kutcher, Chris Rock and Jane Fonda star in this series. But, of course, it is necessary to have a Stoner Cat NFT to watch this animated series.