Everything about NFT

NFT

NFT

On 11th March 2021, Mike Winkelmann — a popular artist known as Beeple, sold a Digital Art (Read NFT) at a record-breaking $69.3 million. This auction was conducted by a London-based auction house, Christie’s.

That’s Correct, Authentic Digital Art was sold for a smooth $70 Million!! And I’m Still struggling to get my social media designs approved.

Now, just like me, other stoned-eyed folks, you’ll be wandering, WHAAAAAAAAAAAAT? How did this happen? How can this happen? Can anyone do it? Can I do it?

Well, the answer to the last one is yes, ANYONE can do it. You don’t need to be an “entrepreneur”, “early tech adopter”, “bitcoin aficionado”, “blockchain expert” or any other jargon-adjective!!

So, let’s start from the start, who knows, At the End, it might matter the most!!

 

Small steps are now getting towards a Big Leap into a Brave New World.

 

What is NFT?

Non-Fungible Token

NFT is the short-form of Non-Fungible Token , is just another digital file, like word doc (.docx) or excel file (.xlsx) or like photoshop (.psd) or illustrator (.ai) file.

************ Let that sink in ************

It’s simple, now that you know it is a digital file, whose authenticity is verified using blockchain technology. That means an electronic ledger stores the copy of the original file along with other metadata, such as who is the owner, when it was created, who created it, when it was sold, which auction house facilitated it etc.

But what is meant by Non-Fungible?? is it related to fungus or computer virus?

NO NO NO, dear muggles, Fungibility is an Economics concept, which tells us whether or not the individual units of good or commodity are interchangeable.

E.g 1: Imagine, You have $10, you can exchange a note of $10 with another note, or with two 5’s, ten 1’s. This makes money Fungible. Not if you’re the old Indian Banknote (that’s now just a worthless piece of paper).

 

E.g 2: Imagine, you are the owner of KGF, you own a shit-ton of gold. Now gold from your mine is interchangeable with gold from any other mine. Gold is Gold, South American or Indian!! Gold is thus fungible.

 

E.g 3: Imagine, you have a 10-year-old Fiat Padmini, NOW, this particular car is NOT interchangeable with any other 10-year-old Fiat Padmini. Wear & Tear, distance covered, the health of the engine, there can be many factors to value 2 models differently. This makes it non-fungible, 2 same models, manufactured by the same company, in the same plant, by the same workforce HAS different valuation, thus cannot be exchanged like for like.

 

E.g 4: Imagine, you are the owner of a Taj Mahal, Wonder of the World, but will you exchange it with my model of Taj Mahal? It’s too a wonder for the world, but it’s not like-for-like in valuation.

 

Non-fungible thus means that a unit of good or commodity cannot be exchanged with another similar unit of the same good or commodity.

NFT, is a unique, digital token stored on a blockchain.

Much Jargon Less Tech, if you observe and read keenly.

How NFT works?

How NFT works

Image Source:  imaginima | Getty Images

The development and successful commercialization of NFT’s is a revolutionary step in Human History. We have now taken steps to make the abstract; fundamental, we have fused the virtual with the real (money).

NFT is based on Blockchain technology, it stores data on a public network, accessible to all. Anyone can make an NFT and obtain Digital Certificates indicating ownership of that asset.

You don’t need any prior permission from anybody to make an NFT. Did you ever ask anyone before mixing Lemonade & Vodka?? 😉

These certificates are stored in an encrypted peer-to-peer network (blockchain) which makes it really difficult for cybercriminals to hack or tamper with them.

 

If you are looking for a step-by-step guide, here it is:

Step 1:

Create your artwork. It can be anything. Jack Dorsey sold his FIRST tweet for $2.9 million. As I’m writing this, Elon Musk just sold a song about NFT’s

 

Step 2:

Select on which blockchain-network you want to issue your NFT’s. Remember each blockchain-network has its own token standard, compatible wallet services and marketplaces. That means you can only trade your NFT’s on marketplaces that support your cryptocurrency.

If you buy on NYSE, you cannot sell it on NASDAQ.

Step 3:

Follow the sign-up guide of the marketplace and then upload your file you want to turn into NFT.

Step 4:

Once uploaded you can now sell it.

If you wish to Buy NFT you need to sign-up on marketplaces and comply with their cryptocurrencies.

This is how NFT’s Roll.

History of NFT?

History of NFT

Image Source: Forbes.com

NFT’s became a thing 6 years and a pandemic ago in 2015. (Please comment below, if you think Humanity should map Ages from one pandemic to next). So why did I wait for 6 years and a pandemic to write about this? Well, it never made it into Million’s of News Headlines with Millions of Dollars!!

 

Ethereum made the first NFT back in 2015 as a part of its Etheria project. Back then it was a 33×33 map of hexagonal tiles, on which one could build lego structures. To make it tradeable, Ethereum allowed owners to transfer ownership to another account.

Since then, NBA, Deadpool-2, Grimes, many have joined the new post-pandemic economics. You can read more about it on Wikipedia.

What is the Future Scope?

In a world of ctrl+x/c(cmmd+x/c) & ctrl+v(cmmd+v) (cut/copy, and paste) NFT’s are a truly revolutionary.

They create and vouch for authentic digital art. They tackle issues of ownership, compensation, and royalty head-on. This means digital artists can now create and sell their work with little-less concern.

Now, this makes it more interesting.

Digital cryptocurrencies are fungible, I meant equally exchangeable, that is they behave like the dollar note. But NFT’s maintain their distinct value and price. That is in financial terms, they are a unique asset worth some money.

  1. Collectibles: Digital collectibles are now going to be in-vouge. It’s going to be fashionable to own NFT’s linked to collectibles such as digital race cars, digital racquets, or anything. Nike, Formula 1, Samsung, Louis Vuitton, the NBA, Barcelona, and Real Madrid, Vodafone have all tried,tested, and used NFT’s.Digital collectables
    Image Source: forbes.com

 

  1. Music: Musicians, Artists, Labels can now safely protect their IPR’s on the digital front. NFT’s makes it simple to maintain public records of ownership. This makes it safe to launch an “Only Digital” version with much fewer piracy concerns.Musicians, Artists, Labels can now safely protect their IPR's on the digital front. NFT's makes it simple to maintain public records of ownership. This makes it safe to launch an "Only Digital" version with much fewer piracy concerns.
    Image Source: techxplore.com

 

  1. Art:  Christie’s sold Beeple’s art for $70 million. Need more examples?

    Christie's sold Beeple art

Image Source: theverge.com

  1. Sports Cards: NBA Top Shot is an interesting case study on how NFT’s will affect the vintage card or the sports card industry.

NFT-Trading-sports Cards

Image Source: usa.inquirer.net

 

  1. Gaming:

NFT’s have unleashed a new frenzy into Digital or Online Gaming. With much more monetization avenues to explore, it’ll be great to watch this space.

NFT’s are here to stay, everything will sell this way. Welcome to the soft parade!!

 

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