Have you ever thought about what NFTs are actually? Why are people, even out of the crypto world, becoming increasingly obsessed with them? The simplest way to describe NFT tokens is as a digital certificate of property ownership, usually digital. Like cryptocurrencies, the token is in the digital wallet, the owner’s account.
That token has its unchangeable note in the blockchain, and thus the need for any proof of ownership ceases. Who has the token, the property it refers to is his and the point? So, unlike digital currencies, such as bitcoin or ethereum, NFT tokens have broader possibilities of moving through the blockchain system.
But what NFTs are? Let’s get to explain the basics of it, shall we?
Non-Fungible Tokens – explained.
As the name suggests, NFT tokens are indivisible, so there is no, as with bitcoin, payment in some hundredths or thousandths. Interestingly, the use-value of NFT tokens, as a novelty, is still being investigated. At the moment, NFTs are the most represented in digital art. An artist makes a token for his work and sells it, usually through an auction, directly to the buyer.
That work is digital, and as such, it can be copied countless times, but the owner of the “original” is only one, and in the future, it could be imperative because of the earnings. In other words, non-fungible tokens are considered unique crypto tokens that are set on a blockchain, a form of digital ledger, and cannot be replicated.
NFTs usually represent real-world items such as artwork, audio, photos, videos, GIFs, memes, tweets, and even real estate. “Tokenizing” these real-world tangible assets make purchasing, trading, and selling them more efficient while reducing the probability of fraud.
For NFT investors and collectors to find the value of an NFT, it’s essential to use rarity tools that show how rare a non-fungible token is. The rarer the non-fungible token, the more expensive it is.
Example of NFT promotion in sports
The promotion of this art was perhaps best done by the world’s best football player Lionel Messi, whose character was marked by the Australian digital “painter” named BossLogic “achievements”, moments, love for the team and the future “of this master of ball games. Messi was paid in fan tokens of unknown value when transferring from FC Barcelona to FC Paris Saint-Germain.
Digital avatars on Twitter
Twitter is another excellent example of how it will be increasingly difficult to use something digital in the future without paying the rightful owner. Even now, you cannot have a digital avatar or user image on that social network without being the actual owner. The system recognizes whether the thumbnail is original.
The token’s value can be fabulous, as shown by those owned by the artist Beeple, whose series of tokens sold for 69 million dollars in the first 5,000 days of his work. And that the token can be “anything”, as we saw from the “first tweet” auction, which was set up on auction by its owner and the founder of “Twitter”, Jack Dorsey.
The price reached was two and a half million dollars. It is similar to gifs, music, and “crypto kittens” To get their avatar in something called “Bored Ape Yacht Club”, actress Paris Hilton, comedian Jimmy Fallon, basketball player Step Curry and singer Eminem paid a token of $ 200,000. The $ 340 million oil market exploded in 2020 to $ 41 billion last year, according to a new metric released by the Financial Times.
