What is an NFT?

Before I give you a clear definition of Nft, I would like to share some funny tweets of how people described Nft.

An NFT, or non-fungible token, is a digital asset that symbolizes a material thing. NFTs are typically purchased and traded online, often using cryptocurrency. “Non-fungible” is an economical word that is one-of-a-kind and cannot be substituted with anything else. It can be reproduced for items such as your movies, furniture, song files, collectibles, sneakers, images, or your computer. 

An Ethereum or Bitcoin, for example, is fungible (lack of interchangeability)—swap one for another, and you’ll get precisely the identical item. NFTs are gaining popularity as a popular means to buy and sell digital artwork. Since November 2018, a stunning £274 million has been spent on NFTs.

Q: so why are individuals prepared to pay millions of dollars on something they can easily capture or download?  

A: An NFT permits the buyer to retain ownership of the original item. They can only have one official owner and are protected by the Ethereum blockchain—no one can change the record of ownership or create a new NFT.

Fungible Vs. Non-Fungible

Fungible assets are interchangeable with each other. For instance, an ounce of gold is worth the same price, whether from a coin in the United Kingdom or a nugget in California. Bitcoin is also Fungible; while the price of one Bitcoin is volatile from one moment to the next at any given moment, one bitcoin is worth the same amount as any other Bitcoin.

Non-fungible assets are not interchangeable with each other. For example, one vehicle is not worth the same amount as another vehicle, even if they are the same model and made in the same year. Fungible assets have a set price, but non-fungible assets are whatever someone is willing to pay for them.

Are NFTs worth the value?

Charlie bit my finger is being deleted and sold as an Nft

Image: The New York Times – The original 2007 video “Charlie Bit My Finger” sold for $760,999.

Q: Does this mean they’ll sue anyone who hosts Charlie Bit My Finger after they own it?

A: No, that is not how NFTs operate. The original work is yours, but not the copies of the copyright.

Q:  So there’s nothing to prohibit someone lawfully reuploading the video to YouTube? While doubtful, could/would the copyright and NFT holders sue each other if they were two independent people?

A: The original holder will still retain the copyright; thus, whether it’s lawful or not is totally upon whether they allow it or whether there are any fair use exemptions, such as a news item about it being sold as an NFT. They don’t have to erase it to market it as an NFT; Jack Dorsey’s first tweet is still available on Twitter; they’re just doing it for publicity.

Wow, $760,999 for a 2007 video that almost a million people have copies of….

That’s not all,

• An animated GIF of Nyan Cat, a 2011 meme was depicting a flying pop-tart cat, sold for more than $500,000 (£365,000) on February 19, 2021.
• Yes, Twitter co-founder Jack Dorsey sponsored an NFT of the first tweet, with bids reaching over $2.5 million.

Do you mean people purchasing my excellent tweets?

Yes, of course, but you will need to be famous to get that done. I mean, you will have to have a community or group of followers who rank you highly and like anything you post. Respected influencers, musicians, politicians, or even football clubs can auction their first-ever tweet, maybe with a starting bid of $10,000 or less.

I won’t be surprised if the last bid could reach above $13 million.

Grimes, a singer, sold some of her digital work for more than $6 million a few weeks later.

Christie’s auction of a digital artist Beeple’s NFT sold for $69 million.

Sorare, a French company that offers football trading cards in NFTs, has raised $680 million.

Nothing can stop millions of people from indefinitely copying and distributing photos, GIFs, audio files, or video files. Artists retain the copyright to their work to continue making and selling copies. In contrast, the buyer of an NFT receives a “token” confirming ownership of the “original” work.

What Is the Purpose of NFTs?

Artists and content providers increasingly use non-fungible tokens (NFTs) to monetise their work. NFTs are secure digital assets that may be sold directly to consumers rather than through traditional galleries or auction houses. Charmin, a toilet paper maker, recently auctioned off NFT paintings to benefit charity. Celebrities such as Snoop Dogg and Lindsay Lohan have also purchased NFT items.

Who makes use of NFTs?

Not only was the Beeple auction the largest NFT art sale, but it was also the third-highest sum ever paid for a live artist’s work. NFTs are gaining popularity among artists, gamers, and marketers from all walks of life. Stepping into the NFT sector gives artists another outlet for selling their work, as well as a means for fans to support it.

Taco Bell’s NFTs sold out in 30 minutes but are currently selling for up to $3,500 on the secondary market. NBA Top Shot is a digital collectables platform that sells trading cards with historic basketball events encoded in them. The NBA intends to expand this revenue stream by adding virtual jewellery, accessories, and clothing.

Jack Dorsey, the co-founder of Twitter, sold the first tweet he ever sent for $2,915,835.47. You may also acquire digital real estate and 3D assets from musicians who are selling the rights and originals of their work, as well as short movies to snippets of their songs. Kristen Kim, a Toronto artist, developed a ‘digital house’ that sold for a whopping $500,000.

Why are NFT’s so popular right now?

As the popularity of blockchain and cryptocurrencies grows, NFTs are becoming recognised as a new method to sell art, generate money, and acquire intellectual property. All of this is done from the comfort of your own home via the Internet, a virtual world. The NFT is also unique, sparkling, and brand new since it eliminates transportation, storage, and other expenses connected with physical engraving.

The distinctive originality and uniqueness of NFTs are also driving forces for tech investors to create ways for artists to share and sell their work without losing their complete job or related intellectual property rights. The NFT allows talented people to recoup previously refused money. However, it is difficult and will result in lawsuits if you have multiple copyright concerns.

What prevents people from copying digital art?

Millions of people have seen Beeple’s artwork, which sold for $69 million, and it has been reproduced and shared multiple times. In many cases, the artist maintains the copyright to their work, making and selling copies indefinitely. In contrast, the buyer of the NFT receives a “token” showing ownership of the “original” work.

Are Nfts Investments A Good Idea?

JPMorgan Chase believes that these digital art objects generate $2 billion in sales each month. According to Cointelegraph, NFT sales might reach a record $17.7 billion in 2021. There are several markets available, with OpenSea being one of the most popular for buying and selling digital things. You may also build and sell your own NFTs on these marketplaces.

The great majority of current or planned NFT initiatives are at risk of failing to be profitable investments in the long run. Many people will rush into purchasing projects just because they have been promised that they would be worth a lot of money in the future. Please do not act as if NFTs are suddenly a land grab for easy money. Instead, educate yourself and determine which initiatives or persons you support.

How to Purchase NFTs

If you want to start a collection of NFTs, you’ll most likely need to buy some cryptocurrency, such as Ether, depending on the currencies accepted by your NFT supplier. You may purchase cryptocurrency using a credit card and transfer it from an exchange to your preferred wallet. Most businesses charge a portion of your transaction when you acquire bitcoin, so keep this in mind while you investigate your alternatives.

How to sell NFTs?

Most NFTs are bought with ethereum, but they can also be purchased with other ERC-20 tokens like WAX and Flow. You’ll upload your content to a marketplace and then follow the instructions to convert it to an NFT. The procedure varies for each platform, and you’ll need to include details like a description of the service and proposed cost.

How to make an NFT?

An NFT is something that everyone can do. All you need is a digital wallet, a little there purchase, and access to an NFT marketplace where you can upload and convert your work into an NFT or crypto art.

NFT Marketplaces That Are Popular

Once you’ve set up and loaded your wallet, the following are the major NFT marketplaces at the moment:

• OpenSea

OpenSea is a peer-to-peer platform that allows artists and creators to issue and sell NFTs.

• Rarible

Rarible is a democratic, open marketplace that allows users to weigh in on features like fees and community rules. To get started, all you need to do is create an account to browse NFT collections or buy and sell items on the platform.

• Larva Labs

Larva Labs is primarily known for the CryptoPunks NFT project, which went viral. The NFTs are sold out, but third-party markets accept bids and purchases. Larva Labs is also working on other digital art projects, like Autoglyphs.

• Axie Marketplace

Is the online store for Axie Infinity, a video game. Axies are legendary animals that may be purchased and trained for monetary gain. Players may use NFTs to purchase new Axies, as well as entire lands and other things, on the Axie Marketplace.

• NBA Top Shot

is the NBA’s first step into the realm of NFT. Collectable moments (video clips and play highlights) and art from the world’s top basketball leagues are available for purchase on its marketplace. The NBA created it as a closed marketplace on the Flow blockchain.

• Foundation

 Artists must get “upvotes” or an invitation from other creators to put their work here. Because of the community’s exclusivity and costly admission fee, it may have higher-quality artwork.

• SuperRare

Super rare, which uses the same technology as Rarible, creates a marketplace for digital artists and developers. The super rare NFT tokens will be used to uncover and curate fresh talent for the market and will be available for purchase and sale on the OpenSea platform.

• Mintable

Mintable, financed by Mark Cuban, aspires to be a similar open marketplace like OpenSea. The platform also allows creators of all kinds (from photographers to musicians) to mint NFTs to market their work as digital assets. To buy and sell on Mintable, you’ll need first to purchase Ether on a cryptocurrency exchange.

• Nifty Gateway

Nifty Gateway is an art curation site backed by Gemini, a cryptocurrency exchange (controlled by the Winklevoss twins). Nifty purchases and trades may also be made with US dollars without first purchasing a cryptocurrency. Nifty tokens, or NFTs, are based on the Ether cryptocurrency and may be held on Nifty Gateway and Gemini.

• Theta Drop

Theta is a blockchain platform for decentralised video and television distribution on the internet. The World Poker Tour was an early adopter of Theta TV and now streams programming on the network. Several crypto exchanges, including Binance, support theta, and the tokens and NFTs acquired with them may be saved in a crypto wallet.

Royalties

When some NFTs are sold, royalties are automatically sent to the creators. Every time the NFT is sold, the original owners of Euler Beats Originals receive an 8% royalty. Some sites, such as foundation and Zora, encourage their artists to earn royalties.

What’s up with the NFT hate?

NFTs are popular right now, and it appears that individuals are pursuing the buzz without completely comprehending what they are. This is starting to elicit some criticism and scepticism.

In essence, NFTs are similar to those name-a-star registries. You pay, and they may name the star anything they want. They even put it in an irreversible book, and no one ever consults or has any impact on anything.

Even if one of these registries becomes relevant somehow, you will still possess the entry in the register one day. In such instances, an “NFT of a work of art” is similar to a signed print or a trading card but without the tangible thing.

Some of this may take on, and a sensible, stable market for NFTs may emerge, but for the time being, it appears to be a manic bubble.

Here’s the most straightforward summary of why so many people hate NFTs:

1: They are effortless to scam

2: NFT’s are not fully regulated. People can make many editions of one NFT, making the prices unstable. For example, three people purchase an NFT with just three limited editions on opensea for 0.08 ETH. Person A NFT is sold 2.1 ETH, Person B NFT purchased at 0.08 ETH initially now sold for 10 ETH, and Person C own also bought for 8.47 ETH. It goes on and on…..

3: There are many more efficient ways to do NFTs besides the incredibly complex procurement methods. For example, a digital artist is selling their work to someone. The artist then prints or reproduces the piece, edits it to a different style, and sells it at a high price.

Ethereum

EthereumERC-721 was the first Ethereum blockchain standard for representing non-fungible digital assets.

Unlike ERC-721, where a unique ID represents a single asset, an ERC-1155 token’s unique ID represents a class of assets, with an extra quantity field to reflect the amount of the type that a specific wallet owns.

Because Ethereum presently has high transaction fees (known as gas prices), layer two alternatives for Ethereum that also allow NFTs have emerged:

Immutable X — Immutable X is an Ethereum layer two protocol created exclusively for NFTs that uses ZK rollups to minimise transaction gas costs.

A polygon Polygon, formerly known as the Matic Network, is a proof-of-stake blockchain supported by major NFT marketplaces like OpenSea.

My Thoughts:

An NFT may represent ANYTHING. A certificate of authenticity of a digital file such as Audio, gift, a tweet, a football player celebration or even a Youtube video. They symbolise ownership of a picture in an everyday sense. NFT – Non-fungible Tokens a token that is not fungible.

Sure, you may copy that image now. You may paint a replica of the Mona Lisa or anything else. However, you do not possess the actual Mona Lisa. An expert would recognise it as not being the original.

However, the technology that allows NFTs can disrupt industries such as real estate and antiques.

When it comes to owning a one-of-a-kind object, an NFT might help speed and safeguard the procedure. If you possessed a Mickey Mantle signed baseball, you could have it evaluated have both the ball and the evaluation linked to an NFT.

You can sell the NFT to a third party without involving any additional appraisers if you wish to sell it. Furthermore, because ownership of the ball is linked to a blockchain ledger record, you can conclusively establish that you own it if it is stolen and later found. Possession is no longer the only evidence that you own anything.

The person who buys the NFT doesn’t own the actual asset. The originator of the Nyan Cat meme, for example, sold an NFT of it for $590,000. The individual who purchased the token owns the token but not the meme. That remains the property of the artist, who has retained intellectual and creative rights.

Oversupply will cause the bulk of NFT projects built in the following years to fail, although the market will stay long-term. NFTs represent a significant cultural and technological transition, comparable to the arrival of the internet, web 2.0, and social media.

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