A Guide to NFTs
What is an NFT?
NFTs are digital files whose unique identity and ownership are verified on a blockchain- the same technology on which popular cryptocurrencies like Ethereum rest. But unlike cryptocurrencies, an NFT is totally unique and the blockchain ledger it sits on verifies who the rightful owner is of that one of a kind item. The ‘non-fungible’ in NFT implies that no two tokens are interchangeable, each token is unique, unlike bitcoin, of which any two tokens are fungible and of the same value.
A digital artwork sold at a Christie’s auction for an eye-popping $69 million, the winning bidder did not receive anything tangible. Instead, he got a unique digital token known as a non-fungible token (NFT)
NFTs helped a lot of creators to earn massive amounts of money for their brilliant digitals arts. The real question is the value of the majority of mediocre art is over the top.
It's obvious that aside from the visual pleasure of physical objects, nearly all the value art offers is, in some way, a social construct. This does not mean that art is interchangeable, or that the historical significance and technical skill of a masterpiece is imaginary. It means that the value we place on these attributes is a choice . When someone pays $150 million for Le Rêve – Pablo Picasso, it’s easy to believe that the work has that much “intrinsic” value.
But, NFTs right now have a cryptocurrency angle, a meme angle, and it’s a social media popularity have given rise to high bidding wars to create a big bubble. Just making an NFT does not give art any value, There's going to be a moment where we realize we got a little crazy and assigned insane value to crap. NFTs is just a bubble ready to pop for bad and easy art. You can see examples of some of the worst NFTs here. Still it wonders me how similar Gifs that have the same content and only different colors can be sold for high values each this is not good for whole ecosystem.
Future of NFTs
In addition to digital arts, the future of the NFTs lies in the listed field majorly.
Document Verification - “Documents that are unique to the holder and require constant verification can be minted as NFTs and have frictionless automatic authentication," Paraj Mathur, a seed investor at Panoramic Ventures, said.
Since NFTs use blockchain technology as their record-keeping backbone, you can clearly discover who owns which NFTs at any moment. If important documents were minted as NFTs, then you could potentially verify the documents easily yourself without a middleman.
Gaming — Currently in game assets, purchased by players are stored on the game server. If they shut down the game for some reason, all your assets are gone with it. But by creating in-game assets as NFTs, players have full ownership. They could sell it for real money, exchange it on other markets, or even use it in other games.
Patents and intellectual property - Potentially, NFTs can give more power to the scientists, researchers, businesspeople when it comes to licensing and selling IP. It gives them more control of the pricing or terms of the sale.
Music -COVID-19 has left the music business in disrepair. After losing the industry’s most profitable sector, live music, almost entirely for the past year, many artists and companies have struggled to continue. NFTs offer a potential new form of revenue to compensate for that loss, and it provides a rare opportunity for fans to support artists directly.
The licensing of software applications is also a cool use case for NFTs. If we can buy software directly without going to multiple app stores separately, and use NFTs for purchase, this can remove piracy and add easy buying process of softwares. There is no major progress or interest in this right now.
I am making a small project for NFTs in software applications just for fun. So, let's wait and watch if Ironman could have saved Jarvis from Ultron by adding our upcoming project’s digital prints to Jarvis and proving his ultimate ownership using NFTs. Cheers!