With NFTs, Artwork can be “tokenized” to create a digital certificate of ownership that can be bought and sold. Do they really deserve to be worth Millions? Let’s discuss.
NFTs are Non-Fungible Tokens. At a very high level, most NFTs are part of the Ethereum blockchain. Ethereum is a cryptocurrency like bitcoin, dogecoin, Floki, etc. A few years ago no one has even thought of a little that CryptoCurrency will boom like this. Nowadays people are shifting towards cryptocurrency, towards digital currency. People think it is better and safer than paper money.
With money, you can swap a $10 note for two $5 notes and it will have the same value. However, if something is non-fungible, this is impossible – it means it has unique properties so it can’t be interchanged with something else. Non-Fungible itself is meant as the unique or less found properties in something. A good example of this is Paintings.
It could be a house, or a painting such as the Mona Lisa, which is one of a kind. You can take a photo of the painting or buy a print but there will only ever be one original painting. Just like that, you can take a copy but the original thing and the rights will always be with the person who created it until you pay for it.
A meme/Internet sensation Side-eying Chloe is one of the NFTs which at auction for thousands of dollars.
How do NFTs work?
Traditional works of art, for example, canvases are important exactly on the grounds that they are unique. Yet, advanced records can be effectively and unendingly copied. With NFTs, fine art can be “tokenized” to make an advanced declaration of proprietorship that can be traded.
Cryptocurrency records show which person is holding the rights of the NFT. The buying and selling of tokens of that NFT make a blockchain. One of the important questions raised in the mind of the people is, “What if the data is forged?” Thousands of computers around the world have records of the data. Buying and selling from all around the world have the data. So, Data cannot be forged in this manner.
NFTs can also contain smart contracts that may give the artist, for example, a cut of any future sale of the token.
Worth of Non-Fungible Tokens
Anybody can tokenize their work as NFT. As far as the work is unique he can sell his work after tokenizing his NFT. But in Millions of dollar sales, Interest has been fuelled by related parties such as Binance, etc.
On 19 February, an animated Gif of Nyan Cat – a 2011 meme of a flying pop-tart cat – sold for more than $590,000. At the first, people didn’t believe this. They called this craziness. Now almost everyone wants to win the race and want to be the best content creator and want the admiration of the people around them.
After the passage of time Celebrities also started believing in this. They also tried to sell their work. The voice will be of the musician as it is. In this way, it is a win-win situation for the celebrities. They will tokenize their NFT and as a result, they will get the popularity and potential buyers of their work as well. A few weeks later, after the GIF of Nyan Cat, Musician named Grimes sold her work for more than $6Millions.
It’s not just art that can be tokenized and sold as NFT. Even though, Twitter Founder Jack Dorsey has promoted the NFT for the first-ever tweet. Its bids hit $2.5 Million. Christie’s sale of an NFT by digital artist Beeple for $69 Million, set a new record for digital art.
Is this a bubble and going to burst out one day?
A day before his record-breaking auction, Beeple – whose real name is Mike Winkelmann – told the BBC: “I actually do think there will be a bubble, to be quite honest. “And I think we could be in that bubble right now.”
David Gerard, the author of Attack of the 50-foot Blockchain, said, “The people actually selling the NFTs are “crypto-grifters”. People still have trust issues regarding NFT. They are thinking that this bubble will be going to burst one day.
Former Christie’s auctioneer Charles Allsopp said, “the concept of buying NFTs made “no sense“. “The idea of buying something which isn’t there is just strange,” he added. But one thing to remember is, some were the thoughts for the Bitcoin as well and now everyone is wishing that they should buy it. Who knows what weird surprises the future is holding for us.