coming in the Fall of 2022
WHAT IS NFT?
The acronym indicates an evident proof of ownership of a digital item, allowing precise and quick identification of the owner.
The item can often be a picture, video, song, game, or even a tweet. You can "tokenize," that is, create a digital proof of ownership, anything.
Non-interchangeable tokens always relate only to a specific item and carry information about the owner. They are similar, for example, to a real estate cadastre or a patent for a unique invention.
The said evidence of material or intellectual property has no equivalent for which it can be freely exchanged. In short, there is no other identical property with an equal title deed or any other, but still the same patent.
It also applies to NFTs. It allows us to prove ownership of unique digital items on the Internet, just as we do for physical objects in the real world, by keeping receipts, for example.
However, tokenized items usually remain freely "available" for viewing or downloading by anyone. Still, only one proof of ownership is stored in a blockchain, a kind of "ledger" already used by cryptocurrencies.
This property right can be sold to another person for cryptocurrency.
How does NFT work?
The NFT is based on "smart contracts." These are fulfilled automatically as soon as the coded contract conditions between the buyer and the seller are met. Transactions are irreversible but allow for a new spectrum of possibilities.
Smart contracts also mention "royalties," i.e., license fees. They can be selected by the person who created the token in any transaction. The digital content creator thus has the opportunity to collect a "toll" for each transfer of his work.
NFTs are stored in cryptocurrencies and contain a unique identifier (usually a link to the digital work to which they are linked) and other necessary metadata (title and description of the work). During transactions, the blockchain records which token was sold and who bought it, thus keeping a transparent database of all owners and transactions. It is very similar to trading in bitcoin cryptocurrencies.
NFT in art:
The NFT enjoys the most important use in the arts. Above all, it creates space for monetizing the work of beginning creators. However, the phenomenon is beginning to seep into the "high" art. "Own tokens" for paintings, sculptures, or videos can be purchased. The large auction houses that held the first auctions also noticed the trend. In any case, the NFT is an exciting experiment for the art world. Some say it has already reached its limits.
Probably the biggest upset was caused by a controversial group of crypto enthusiasts when they bought a Morons poster by the well-known street art artist Banksy for almost a hundred thousand dollars to burn it demonstratively. However, they created a digital copy of it and secured the ownership with an NFT token. A week later, thanks to the performance, they sold it for $ 380,000.
How and where to buy NFT?
There are unique "marketplaces" for NFTs, where all possible items are traded. It is similar to the stock exchange or, for example, the Binance platform for cryptocurrency trading.
First, you must set up a cryptocurrency wallet (such as MetaMask, Enjin, Math Walle, or TrustWallet) to support NFT ownership. Then the applicant must buy an Ethereum coin for a few dollars. Ethereum is used to pay transfer fees, as the blockchain operation is relatively demanding.
Then, choose a specific token from our NFT section and go shopping using the attached link to the marketplace. The initial purchase should not take more than ten minutes, even with the establishment of the necessary wallet. Any other transaction takes place almost instantly.
However, the purchase can be worthwhile despite the initial time and financial investment. Presumably, the most famous pixel illustrations by CryptoPunks were sold for only 0.2 ETH four years ago, which was negligible at the time. Now the most valuable one reaches a value of up to 4,200 ETH, approximately 7 million dollars.