Table of Contents
NFT: what is it about, what do cats have to do with it and what the hell is going on?
Mitchell Clark of The Verge tackled the most hyped – but little understood – topic of the last two weeks, non-fungible tokens (NFT), in a humorously serious way. A retelling of the article was published on DEV.BY.
You are not alone if the entire world is buzzing about the new blockchain chip and you have no idea what’s going on. When I heard about the meme cat that was marketed as an NFT token, or Grimes, who got millions off of them, I felt the same way. Jack Dorsey put his first autographed tweet up for auction on the NFT only when things started to dawn on everyone.
Okay, let’s go over everything one by one.
What is NFT? How is it deciphered?
NFT – Non-fungible token.
Somehow it didn’t help much.
Let’s get this fixed now. A non-fungible token is one that is one-of-a-kind and cannot be substituted by another. Bitcoin, for example, is fungible: if you sell one and purchase another, you’ll end up with the same item. However, the one-of-a-kind collectible card cannot be exchanged. As if switching Squirtle for the rare T206 Honus Wagner baseball card from 1909, dubbed the “Mona Lisa” of baseball cards.
How does NFT Work?
Most NFTs are part of the Ethereum. Ether is a cryptocurrency similar to bitcoin or dogecoin, except its blockchain allows for NFT tokens, which contain additional data and are organized differently than an ether coin. It’s worth noting that NFT tokens can be used on other blockchains as well. Last year, the TRON blockchain introduced its NFT standard.
What do they buy in the form of NFTs?
Paintings, music, or a copy of your brain turned into AI can all be NFT tokens, however the most of the hoopla around this technology revolves around the sale of digital art objects.
Are you saying people will buy my tweets?
Of course, no one says you can’t sell them, but I wasn’t implying that. NFTs are frequently discussed as a development in fine art collecting, albeit virtual fine art.
(When we wrote the question concerning tweets, we tried to think of something as ridiculous as possible that would never happen in real life.) This was apparently taken as a challenge by the founder of Twitter, who responded a few days after the piece was published.)
Read Also: HOW TO SELL NFT FOR A PROFIT
Do people really believe it will turn into a hobby like collecting photographs?
I’m sure some individuals sincerely hope so, like the people who paid almost $390,000 for a 50-second Grimes video or $6.6 million for a Beeple video. By the way, one of his masterpieces, the banner for “Christie,” fell under the hammer…
Excuse me, but I’m just downloading a file for which someone spent millions of dollars.
Yeah, this is strange. Digital files, including art items with the NFT attached, can be copied as much as you want.
NFT tokens provide you a one-of-a-kind experience: you become the owner of the original file. If you want to collect material paintings, you can get a Monet copy. The original, on the other hand, can only belong to a single owner.
No offense to Beeple, but his video is far from Monet.
How about a $3600 Gucci Ghost? And I didn’t finish the sentence above. At the Christie’s auction, Beeple’s artwork sold for $69 million. This is a $15 million increase above the price paid for Monet’s Water Lilies in 2014.
A material object is available to those who purchased Monet. When it comes to digital art, any replica is virtually identical to the original.
But how can you show off that you have the original Beeple …
Why would you want to?
It depends if you are an artist or a buyer.
Let’s say an artist.
First and foremost, I admire you. You’re a cool dude. NFT technology can be beneficial to you since it allows you to sell work that would otherwise be unavailable.So you’ve made a brilliant sticker pack, but what are your plans for it? In the App Store, can you sell for iMessage? Yes, for naught.
On successive resales, NFTs may earn interest. If your work becomes extremely popular and valuable, you will gain from it.
What if a buyer?
The option to financially support your favorite artist is one of the most obvious benefits of purchasing art. This is likewise true for NFT tokens (which are much more fashionable, for example, stickers in Telegram). Additionally, purchasing an NFT usually grants you some basic usage rights, such as the ability to publish an image online or use it as an avatar. And where would you be without the “right to boast” that you possess an art object, as well as an immutable record in the blockchain to prove it?
Oops, I mean collector.
Then NFT tokens proudly stand on par with any other speculative asset that you can buy in the hopes of profiting from a price gain in the future.
So, each NFT token is unique?
Each NFT coin is a unique token in the blockchain, in that boring, technical way. It can, however, be like a van Gogh painting, where the original only exists in a single copy, or a collectible card, with at least a few hundred identical duplicates.
Who would spend hundreds of thousands of dollars for what amounts to a trading card?
This is a key component of the NFT. Some regard them as the future of art collecting (read: a toy for the wealthy), while others compare them to Pokémon cards. While we’re on the subject of Pokémon, vlogger Logan Paul recently sold many million-dollar NFTs…
Please don’t do that. I suppose it all boils down to…
He did sell NFT tokens for videos, which are the most typical snippets from a video that you can watch on YouTube at any time. For $20,000.00. He also offered NFT cards featuring his own artwork.
Search for NFTs? Where?
There are a number of platforms dedicated to NFTs that allow you to buy and sell tokens. OpenSea, Rarible, Nifty Gateway (Grimes showed there), and a slew of others, to name a few.
Cryptokitties are also somehow connected with this?
NFT coins became technically conceivable with the acceptance of the new standard, since the Ethereum blockchain began to support them. The CryptoKitties game, in which users could breed and sell virtual cats, was one of the first applications. Use the Internet wisely!
I like cats.
No more than a man who paid $170,000 for a single cat.
Yeah. However, the kittens have demonstrated that gaming is one of the most intriguing applications for NFTs. There are existing games that allow you to purchase artifacts in the form of NFTs. For example, one company sells virtual land tokens. Developers may go even further and distribute in-game swords, helmets, and other items as NFTs so that gamers can show off right away.
Can I rob a museum to steal NFTs?
It’s a tense scenario. Stealing or replacing data is more difficult on blockchain than it is, example, at a museum, because every transaction is logged. Because cryptocurrencies have previously been stolen, everything will eventually come down to how the NFT is held and how much work the potential victim is willing to put in to regain the loss.
Please don’t steal from an NFT Museum!
Should I be worried about what will happen to digital art in 500 years?
More than likely Image quality is decreasing, obsolete file formats are no longer opening, websites are unavailable, and people are losing their passwords. However, art pieces are extremely delicate.
Is it possible to buy NFTs with cryptocurrencies?
Yes. Ether is accepted on several platforms. However, anyone can technically sell NFTs for any currency they wish.
How would purchasing an NFT token effect global warming? Greenland isn’t melting, right?
This isn’t a joke, though. NFTs use the same technology as the “hungry” cryptocurrencies, and they use a lot of electricity as well. They are already working on it, but most NFT tokens are currently linked to cryptocurrencies, which emit enormous amounts of greenhouse gases into the environment. Artists have been hesitant to sell NFTs in the past after learning about the potential environmental damage. Here’s more on how crypto art can influence nature.
Can I build an underground bunker or cave to store NFTs?
NFT tokens, like crypto, are saved in digital wallets (and the wallet must be NFT compatible). Nothing prohibits a computer with a crypto wallet from being placed in an underground bunker.
Aren’t you tired of writing “NFT”?
HELL YES I AM!