NFTs or Non-fungible Tokens:
Let’s talk about the hottest topic in the blockchain industry that is NFT’s.
It is one of the emerging ideas in recent times after cryptocurrency.
What are NFT arts?
Fungible stands for replaceable, non-fungible stands for non-replaceable. NFTs are the way of selling these non-replaceable or non-fungible arts. It is a way of connecting artists with consumers. We all know about the bidding system. Earlier, when an artist wants to sell his painting, he has to present it for bidding, and different consumers take it by applying as much rate as possible. The one who gives the maximum rate wins the bid as well as the painting.
Something like this also happens in NFT arts. But it’s all digital and virtual.
A creator can place any form of art on bidding. Media like, images, GIFs, Videos are also part of it. For example, Zack Dorsey has sold his tweet worth $2.5 Million(18 crores). These arts are sell in the form of NFT.
How it works?
In offline auctions, we get the things physically, but in NFT’s, the person is given a token. This token can have only one owner at a time. When any picture is on the internet, it gets multiple copies, and the original creator does not get the credits. The advanced technology helps to keep track of how many copies are there, helping to retain the identity of the original creator.
One more advantage of NFT is Royalty. In physical auctions, the creator will get the price of his piece of work only one time, but in NFT, no matter how many times the owner of the art changes, the creator gets the 10% revenue out of it every time.
This technology works on Ethereum Blockchain technology.
Blockchain technology is slowly getting popular in the industry. It is the safest option for the banking system.
In simple words, there are blocks of information storing data of the buyer and the seller, and that block stores the information each time it gets changed. The memory is non-erasable, the data is stored permanently.
For those who are interested in investing in NFTs, there are platforms like:
Open sea and Raible. For now, all the marketplaces working for NFTs are accepting money in the form of cryptocurrency only.
Everything has its pros and cons, let’s put light on that a bit and then decide whether to use it or not!
➱No matter how many times the art is sold, the original creator gets the revenue each time.
➱The identity of the original owner does not vanishes.
➱With the use of Ethereum technology, it proves to be one of the safest technology.
➱The hackers steal the data of other creators and sell the art in his name instead of the actual creator.
➱They accept transactions in cryptocurrencies only which are yet not used by many.
➱The buyer cannot get the art physically.
➱To use this technology, you need to use the internet.
What is its future?
NFT is instead emerging as one of the best technology on grounds for the artists, especially in the time of covid but, it has certain loopholes.
After sorting these loopholes, in the coming years, it would lead to great success.