Most of us can make a GIF, take a picture or record a clip, but what if you could sell those and other digital media for hundreds of thousands of dollars? NFTs, or (Non-Fungible Token) can, a new idea of patronage and empowering everyone from musicians and artists to TikTok creators and meme makers.
To better understand this we have to first understand the term Fungible. In the most simple way, the term Fungible can be termed as replaceable or interchangeable and therefore non-fungible implies non-replaceable or non-interchangeable. Ex the Tajmahal Or the painting on the Monalisa both the items are non-replaceable and also can’t be interchanged with any other item in the world, you can copy the painting but it will never be the original similarly you can have replicas of the Tajmahal but can never be the original.
Let’s consider a case scenario for better understanding!
You have a hundred dollar bill so can it be replaced with another hundred dollar bill although the serial nos on the bill are different, the answer is yes can it be replaced with two 50 dollar bills the answer is again yes so the hundred dollar bill is fungible, but if you have 100 dollar bill autographed by the president of America (Barack Obama) for you is it replaceable by other 100 dollar bills the answer would be no, so this hundred dollar bill is Non-fungible.
In technical term’s NFTs is units of data stored on a digital ledger, called a blockchain that certifies a digital asset to be unique and therefore not interchangeable.NFTs can be used to represent items such as photos, videos, audio, and other types of digital files. Access to any copy of the original file, however, is not restricted to the buyer of the NFT. While copies of these digital items are available for anyone to obtain, NFTs are tracked on blockchains to provide the owner with proof of ownership that is separate from copyright.
The NFT market value tripled in 2020, reaching more than $250 million. During the first quarter of 2021, NFT sales exceeded $2 billion.
Major types of NFTs
Digital art or crypto art was an early use case for NFTs, because of the ability of blockchain technology to assure the unique signature and ownership of NFTs. The digital artwork entitled “Everydays — The First 5000 Days”, by artist Mike Winkelmann, also known as Beeple sold for US$69.3 million in 2021. The purchase resulted in the third-highest auction price achieved for a living artist, after Jeff Koons and David Hockney. Another Beeple piece entitled “Crossroad”, consisting of a 10-second video showing animated pedestrians walking past a figure of Donald J. Trump, sold for US$6.6 million at Nifty Gateway, an online cryptocurrency marketplace for digital art although ownership does have the privilege as that of copyright. But you can opt for royalty so every time the item or digital art is being sold you get a royalty for that says 10%.
NFTs can also be used to represent in-game assets, such as digital plots of land, which are controlled by the user instead of the game developer. NFTs allow assets to be traded on third-party marketplaces without permission from the game developer. In February 2021, Axie Infinity recorded a sale of $1.5 million for digital land titles in a single sale.
Such as digital cards of NBA or other collectables such as the first tweet of jack forces it's a weird digital world
Blockchain and the technology enabling the network have given the opportunity for musicians to tokenize and publish their work as non-fungible tokens. This has extended the list of options for musicians and artists alike to monetize and profit from their music as well as other content surrounding the themes of the music and the artist's public image. NFTs were utilized by artists to increase revenue during the COVID-19 pandemic. In February 2021, NFTs reportedly generated around $25 million within the music industry (in an industry with annual revenue of over $20 billion). On February 28, 2021, electronic dance musician 3LAU sold a collection of 33 NFTs for a total of $11.7 million to commemorate the three-year anniversary of his Ultraviolet album
Metaverse and digital land
Virtual reality complements their existence in the real world. These worlds, or metaverses, are becoming established places in which people can socialize, explore, play games, and even make money. In many ways, the metaverse acts as a continuum of the real world, in that many activities that can be carried out in real life now extend to the metaverse. For example, now, you can even order Dominos pizza in the metaverse of Decentraland, and get it delivered to you in real life.
Each metaverse represents a separate parallel world, where one can buy land, build a house and hang out with friends. Metaverses sharply grew in popularity during COVID-19. Extended Reality (XR) is the name given to such technologies. Whether through the integration of digital objects into our real-world or through immersion in fully engaging 3D environments.
The main metaverses at the moment are Decentraland, CryptoVoxels, Somnium Space, The SandBox.
Well, many experts suggest that the NFTs might be a bubble as the prices are soaring high to the sky and it will eventually burst and everything would go down well they may be right at maybe not be it a bubble or not one thing is for sure it gonna stay with us and be part of the crypto world.
The only disadvantage of NFTs is their carbon footprint as NFTs basically uses ethereum blockchain which consumes 33TWH of electricity which is a lot of energy and mainly the energy is produced using fossil fuels which have quite a lot of environmental impacts. But if you’re an aspiring or established artist or content creator, no promises, but this could be big for you.
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