Now the world has been blown up by pictures that sell for a lot of money. But not everything is as simple as it might seem at first glance. Therefore, today we will learn more about these pictures.
Let’s start with the fact that such pictures are called NFTs. This is a special token that is created as an image and has its own purpose and value. You can earn very good money on it and become just a single owner of value. And you can sell and buy such tokens from the nft marketplace development company – Unicsoft.
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What is NFT and why is everyone talking about them?
NFT stands for “Non-Fungible Token”. If we talk about “Non-fungible”, then this means that they cannot be replaced by something else. You can replace a dollar bill with another or exchange one bitcoin for another and you will have the same value and liquidity. The examples above are “disposable” or replaceable. But a work of art, such as a museum piece, such as Napoleon’s sword or business card, is unique and irreplaceable.
To prove that a physical work of art or a trading card is unique, you can consult with experts or use a certificate of authenticity issued by the author or organization. Verification is based on public trust in the author, owner, or organization that performed the authentication.
NFTs use blockchain, the technology on which all cryptocurrencies are based. One of the great qualities is the ability to verify claims, such as ownership or the authenticity of an asset, in a non-centralized way. Information cannot be edited without being discovered by the entire chain. And as a rule, this information is within the reach of anyone who wants to get it without consulting the owner or author.
This NFT or certificate of authenticity/ownership cannot be copied or falsified even by the author or current owner, and any movement in the ownership or quality of said NFT is recorded in a centralized public system.
Hence, you can sell it, lend it, put it as collateral, or use it for anything, depending on the “Smart Contract” created at the time of its release. You can also earn royalties from future transactions without having to constantly track the transaction or charge third parties, all thanks to the blockchain.
If it doesn’t make sense to you that digital products cost millions of dollars, consider that physical goods have community value. Like Michael Jordan’s first shirt or the Mona Lisa, they have value because we give it to them.
Owning a work of art and renting it to a museum for the public to see gives your community your economic opportunity and interest in art, even if everyone can see and copy it or make calendars and T-shirts with reproductions of it.
Digital goods, like the Twitter founder’s first tweet, also convey the economic opportunity to buy them. Of course, people can take a screenshot and save it on their computer, but this NFT is unique and there is only one original.
Is it possible to sell a physical item using NFT?
Technically not, but for example, Nike just patented a method called CryptoKicks to authenticate sneakers using blockchain. This technology links the digital representation of the shoe, connecting it to the user and providing them with a digital token. When you sell these shoes, this digital token can be transferred to the buyer.
Most interestingly, the Nike patent defines how two shoes can be mixed to create a “descendant”, and the result is a unique physical model of the shoe, obtained by crossing two tokens.
We are facing the first versions of this technology, right now it seems like the equivalent of the old west where scams and bubbles abound.
The qualities of this technology are clear and will evolve, removing bureaucracy and middlemen in transactions, increasing transparency, and helping new generations of artists and creators monetize their work without being dependent on the platforms or companies that take most of the value.
It’s time to think about how technology can improve and give you a competitive edge before your competitors know. For more detailed information you can watch here.