Crypto Currencies

What’s an NFT Coin? Detailed Information About NFT

Whats an NFT Coin?

Okay, since this is an acronym, let’s start by decrypting it.c

NFT = Non Fungible Token. In Russian: non-fungible token.

Unfortunately, it does not clarify the situation much.

Therefore, I will formulate the meaning: NFT is a technology that will have a huge impact on all areas of our lives. Because it allows you to digitize the interaction with any virtual and physical goods.

Okay. But how does this happen? To do this, we will still figure out how NFTs work.

Each record on the blockchain is called a token. However, in an open blockchain, all tokens are equal to each other and are fungible. This means that one token can be replaced with another of the same token and nothing will change. But Non Fungible Token (NFT) technology works differently. Each non-fungible token is unique and cannot be tampered with, split, or subtly replaced. Such an organization is ideal for securing your rights to any unique object, be it a work of art in a single copy, an item in a computer game, or even real estate.

NFT technology was created in 2017 based on Ethereum smart contracts.

Where is NFT used?

In February, non-fungible tokens were actively introduced into the field of art. For example, DJ 3LAU became the first musician to tokenize his own album and sold it in a limited edition. On this he managed to earn $ 11.6 million. The singer Grimes, known as the mother of the child Elon Musk (born in May last year), did the same. She sold 400 NFT tokens, which were tied to four drawings personally created by her and her brother. In just 20 minutes, the token sale brought Grimes $ 5.8 million.

Also, non-fungible tokens are used in the gaming industry to confirm ownership of virtual assets, when registering domain names, as well as in real estate.

How to get started with NFT

Artists wishing to tokenize their work can do so at Rarible or OpenSea. There you can also buy your first token tied to the work of another author. It is noteworthy that OpenSea creates an NFT token only when a buyer has already been found for it. This saves the author from additional fees in the form of a commission on the Ethereum network. Rarible, on the other hand, creates an NFT token immediately upon uploading the work and charges a commission from its author.

Prospects for non-fungible tokens

NFTs can revolutionize copyright control, says Anton Kravchenko, CEO of Xena Financial Systems. In his opinion, with the help of radio station tokens, it will become easier to obtain rights to broadcast music tracks, and streaming services – to buy rights to show films and TV series.

Right Click — Save Problem

And now the lets come to the question about NFT, especially when it comes to digital art.

“But I can just save this picture!”

Okay, this was really a problem before, which made life difficult for those who created a digital work. Anyone could keep it for themselves and this copy did not differ in any way from the original.

Now, thanks to NFT, no.

This is how it works. When we create a rare NFT, 1 \ 1 (the number of this copy \ the number of copies in general) based on, for example, a painting that exists only in digital form, we secure the ownership of the original. And the value of this original will not diminish, but grow as the picture itself is copied and distributed. Copies of your work will be distributed, more and more people will learn about your work, and the cultural value of your work will grow.

La Gioconda. Its value is undeniable (well, only if you are not by chance a radical futurist who has survived to this day). You can hang a reproduction on the wall and look at it, you can download a jeep with Gioconda to your phone, print it on a T-shirt, you can take a photo of the original in the Louvre. From this, the value of the original will only grow. Actually, this has been happening for many years. The more noise around the Impressionists, the higher their price.

The exact same thing will happen with digital art. The analogy is complete. You can put Beeple drawings on your desktop, but you don’t own them. And the owner gets all the same advantages that the owner of the original Modigliani has over the owner of the reproduction. Looks the same, but in fact is not the same at all.

When we arrive at the Louvre, we know that this is the original. Blockchain is the Louvre. The value of a work is determined by the cultural context around it. And the blockchain fixes this value and its ownership, as it allows you to confirm the ownership and originality of any work.

Paradigm shift

All this seems very unusual.

We are used to copying a digital asset freely. And the copies are no different from each other. But this is because we are used to assets physically. We are not digital by nature. We still need to shift our paradigm in order to begin to understand what ownership of a digital work is and how its value is formed.

But our children and grandchildren, who are born with a phone in their hands, will no longer need such a paradigm shift. They will feel the value of the original digital work, just as we feel the value of the physical.

Conclusion

NFT technology allows you to digitize and make interaction with any product more convenient. Ownership, purchase, sale, confirmation of originality.

Tokenization adds value to the product.

NFT is called the main trend in the blockchain in 2021.

This technology has already revolutionized art, and games are next.

Any commodity that cannot be eaten is likely to be tokenized.

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