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Thursday, 9 December 2021

What is an NFT? - The NFT have revolutionized the art market

 What is an NFT? - The NFT have revolutionized the art market

What is an NFT - The NFT have revolutionized the art market
What is an NFT? - The NFT have revolutionized the art market

In this article, we'll explain to newbies what an NFT is and provide an overview of everything you should know about digital assets.

NFT is the abbreviation for Non-Fungible Token.

What does an NFT look like?

  In theory, any asset can be digitized and turned into an NFT: drawings, digital works of art, video clips or even real possessions. It is important that the NFTs contain information that proves their uniqueness. In this way, the respective owner can always be traced back and can assert his claim.

The question now, of course, is how do you protect a digital asset? Finally, you can save a copy of any digital work of art on your own PC with a simple right-click of the mouse.

Recently, NFTs have been at the heart of many discussions, especially in the field of art. But what is an NFT? NFT means in English non-fungible token, or non-fungible token in English. A non-fungible object is a single object that is not interchangeable. For example, money is fungible, you can exchange euros or cryptocurrencies, but a work of art is non-fungible because it is unique.

An NFT is a digital file to which a digital certificate of authenticity has been attached. More exactly, the NFT is a cryptographic token stored on a blockchain. The digital file alone is fungible, whether it is a photo, video or other, the associated NFT is non-fungible. The first NFT was created in 2014, but NFTs didn't really reach the general public until 2017, when the Ethereum platform gained momentum. It is on this blockchain that the CrytoPunks and CryptoKitties projects (using NFTs) were born. In 2021, Everydays - The First 5000 Days, by artist Mike Winkelmann, better known under the pseudonym Beeple, sold for $ 69.3 million. It is the most expensive piece of digital art in history to date.

What is an NFT used for?

An NFT makes a digital file unique. In fact, when you buy an NFT you are buying exclusive ownership of the original work included in that NFT. However, the artist retains his copyright and reproduction rights. The buyer acquires certain rights such as the right to publish the work online. An NFT can be associated with:

  • a digital painting;
  • a video, such as the NBA Top Shot basketball videos;
  • A meme;
  • a photograph ;
  • a collector's item, for example a card;
  • a video game element (avatars, skins), like those of Cryptokitties;
  • a ticket for an event, such as a concert;
  • a movie ;
  • a patent ;
  • a virtual object that can be used in a virtual world with a virtual reality headset, such as a pair of designer shoes;

an audio file, or even a whole musical album like "When you see yourself" by the group King of Leon.

For an artist, an NFT allows one to sell a digital file as he would sell a physical work. For a buyer, the NFT is used to support an artist, collect digital works of art and speculate on these works.

How to create an NFT?

To transform a digital file into an NFT, its holder must go through a step called minting in English, which is translated into French by typing. Typing involves copying a digital file to a server and then creating a cryptographic token containing a link to that file on a blockchain. The creator of the original work can also store any information in the NFT metadata, such as his name.

The use of a blockchain

NFTs are based on blockchain technology. A blockchain is a decentralized and secure database that keeps the history of all operations in memory. In addition to various cryptocurrencies, some blockchains can issue non-fungible tokens. This is the case of Ethereum, Solana or Binance for example. We can thus know who owns such or such NFT. The creation of an NFT is not free. Costs specific to the blockchain used are to be paid and can vary from a few cents to more than a hundred euros.

How to sell an NFT?

NFTs are sold on dedicated platforms. SuperRare, Rarible, and OpenSea are some of the most popular. These platforms offer the advantage of being able to directly create an NFT from any digital file. The NFT is then sold as a work of art, either through a fixed price decided by the seller or at auction. Notably, every time an NFT is resold, the artist earns a small commission.

1 comment:

  1. It is the intent to provide valuable information and best practices, including an understanding of the regulatory process. upcoming NFT Launches