Every day, crypto technology evolves, and we observe a change in buying and selling things in the digital world. If Salvator Mundi by Leonardo da Vinci could fetch hundreds of millions of dollars, a digital selling of a 10-second video can also take you by a storm.
A Miami-based art enthusiast Pablo Rodriguez-Fraile bought a 10-sec video paying USD 67000. No other investment could have shot his balance sheet with profit like this –he sold the same art at astonishing USD 6.6 million! The incident set a hallmark of capitalizing on digital investments.
What is the video all about?
With the Internet name Beeple, Mike Winkelmann is a digital artist who made the video which was approved and authenticated by Blockchain as many digital signatures certified that it is an original work.
The artist says, “You can go into the Louvre and take a picture of the Mona Lisa, and you can have it there, but it doesn't have any value because you don't have the provenance or the history or the work. Again, the reality here is that this is very, very valuable because of who is behind [it]. It's a full career of a multi-generational, like a generational career in this space of being the best of the best.” The art approved through Blockchain couldn't be condoned by the stakeholders for its genuineness –the hefty amount he earned corroborated this notion.
What are Non-Fungible Tokens (NFT)?
While other online digital trading methods are treacherous and insecure, NFT is the most foolproof method to buy digitally crafted art and other media.
It is a kind of crypto-asset based on the contemporary technology of Blockchain. In other words, the technology of Blockchain endows NFTs with the most secure trading on digital platforms.
A couple of years back, the NFT market had estimated the worth of hardly USD 42 billion that skyrocketed with the growth of over 700% by the end of the pandemic year 2020. The marketplace of NFT is expected to break all the records as the entire business ecosystems are turning virtual.
NFT could include anything –from digital artwork to sports cards to plots in real estate etc. Nevertheless, NFT drew everybody's eyeballs when NBA's Top Shot portal opened up to the users to purchase and trade NFTs. It was done in the form of visual clips from the games.
Objectives of NFT
The sole objective of NFT is to protect the ownership and preserve the goods' value. Hence, the secure certification of ownership means a lot in today's market where forging and duplicating products are on rage.
The NFT technology makes the ownership indisputable and hence adds worth to any product or good; moreover, the digital items it holds are scrupulous and well organized.
Another objective of NFT is to recognize artists' work and reward them with what they deserve. Not only do the makers of an artwork earn today, but they also continue earning whenever the tokens are traded successfully.
The owners can earn anywhere from 2.5% to 10% for the selling price. For instance, YouTube sensation Logan Paul sold a cartoon image of his own NFT worth USD 5 million.
Key features of NFT
NFT has been observed chiefly for collectibles. The most significant advantage of digital collectible over physical is that every NFT has distinguishing data, making it both different from any other NFT and easy to verify.
Furthermore, having a unique identity lists out forging and circulation of duplicate goods. Even more, it is easy to track back the original issuer of the forged goods; therefore, no one can repudiate their first posting or release because of the concrete evidence.
NFTs are different from general cryptocurrencies because NFTs are not identical even though they belong to the same platform or collection. Here are the key features of NFT, which make them the most advanced crypto technology.
Secure trading – due to their non-inter-operability, collectibles are unique and cannot be forged or used on the same platform.
Undivided – NFTs are inseparable and cannot be turned into denomination such as Bitcoins satoshis. They behave like one entity, one indivisible item.
Unbreakable – you cannot break or ramify it into further NFTs or coins. Literally indestructible, the token cannot be removed or duplicated. The ownership remains intact and secure for years.
Authenticated – the ownership data remains secure and stored. Digital artworks can be tracked for their original creators even after decades. There's no third-party verification required as authentication has already been certified in the stored data.
Popularity and future
NNFTs have revolutionized the gaming and collectible domains which have shot the industries with spending of USD 170+ million today. The gamers have become exclusive owners of items and assets within the games; moreover, in some cases, the professional gamblers have legally monetized their casino games and virtual theme parks.
The attire, avatars, and other digital items they acquire in the games can be used as currencies or selling items. The artists now have global audiences, and their works are recognized worldwide with ‘authentication stamp'. Royalties and direct selling is working wonderfully, which makes NFTs the most reliable digital trading.
Today, we have quite expensive NFTs such as Dragon, which is valued at 600 ETH. The F1 Delta Time's one-of-a-kind “1-1-1” race car brought in impressive 415.9 ETH, whereas the NBA superstar LeBron James' Topshot digital card got sold at whopping hundred thousand dollars.
With immense popularity, promising, and foreseeable future, more and more stakeholders are investing and buying digital currencies. And, those who believe in quick yet secure success are leaning toward NFTs.
Continue reading: https://www.linkedin.com/pulse/non-fungible-tokens-technology-made-10-sec-video-worth-ashish-parmar
