What’s NFT? What can you buy with NFT? Why are they so popular?
NFTs (Non-Fungible Token) are cryptographic tokens that allow selling works distributed on the web through unique, non-falsifiable, and non-interchangeable digital property titles. In other words, these tokens make it possible to justify the possession of a good and its authenticity, original creation and not a copy.
Thus, more and more digital artworks are sells as NFTs. These tokens can be purchased for several reasons: for financial investment, as a collector’s item, or for sentimental value. Buyers of virtual goods via NFTs may also feel more connected to the creator or brand involved.
To wit: NFT first appeared in 2017 with the phenomenon of virtual cards called CryptoKitties.
What is the difference between NFT and Bitcoin?
These NFT, also called Nifties, are non-fungible tokens, meaning they are not interchangeable and have a unique character, unlike Bitcoins which are fungible. NFTs are virtual tokens that rely on the secure and independent blockchain system Ethereum, which runs on its cryptocurrency Ether.
What can you buy with NFT?
Any digital asset that a creator wants to make unique can potentially become an NFT. Once the person owns that token for a piece of art or another accomplishment, he becomes the exclusive owner & only he can resell it.
- Digital artwork,
- JPEG image,
So yes, it may seem crazy to pay to own a tweet, but it seems to interest more than one if we look at the incredible story of the sale of the first tweet of Jack Dorsey. In March 2021, the creator of Twitter put this tweet below up for auction on the NFT principle:
Several cryptocurrency entrepreneurs were willing to spend a lot of money to acquire the first tweet from the Twitter platform. This tweet as an NFT eventually sold for $2.9 million. This story is a perfect example of how crazy NFTs can already be.
Why are NFTs so hot?
The main reason is money. NFT technology offers creators a new and significant way to make a lot of money. They can rely on platforms that can handle this type of sales like Valuables, Nifty Gateway, Rarible, or OpenSea.
NFTs are also a real new opportunity for the digital art field because they allow fighting against replication, by offering an unfalsifiable digital certificate of authenticity. Buyers have a unique NFT that makes them the legitimate owners of the work.
Artists have been using data storage and software to create art and distribute it on the Internet for more than 20 years, but there was [until now] no ‘real’ way to own and collect it. With the NFT, all that has changed, said Mike Winkelmann, in a statement from Christie’s auction house.
NFT does not seduce only the actors of the art market:
On the sports side, these tokens also have an interest. We can take the example of the NBA Top Shot application that allows collecting and exchange videos containing actions of a basketball game through NFT. The NBA gets paid with commissions on the transactions of these contents.
On the video game side, publishers are also starting to take a close interest in NFT, like Ubisoft, which has launched Rabbids Tokens, in the form of NFT tokens, the profits are donated to UNICEF.
Examples of digital works sold in NFT
Since the beginning of 2021, many works have been sold in NFT, sometimes reaching record sales levels. Here are a few recent examples of NFT sales that generating hype, due to their astronomical amounts:
69.3 million dollars for Beeple’s digital work
A record sale was achieved by Christie’s auction house, the First 5,000 Days by American artist Beeple, which is a mosaic of drawings and animations created daily for 5,000 days in a row. A great example of the rise of NFT technology.
5.8 million for Grimes’ WarNymph digital collection
Ten digital works by Canadian musician Grimes have been listed for sale on Nifty Gateway platform. Among these works, in March 2021, a unique video entitled “Death of the Old” was sold as an NFT for $389,000.
500,000 for the Nyan Cat meme
In February 2021, the inventor of one of the most famous cats auctioned off a remastered version of the original GIF. The Nyan Cat sold on the Foundation site for 300 ETH. Although anyone can continue to download this cat, the person who made the purchase remains the sole owner.