What Are NFTs?
NFTs (non-fungible tokens) can represent ownership in almost anything, from digital art to virtual real estate.
It has often proved hard to demonstrate rights in the digital asset space, but with the introduction of NFTs, demonstrating ownership has been safer and easier. Contrary to bitcoin or dollars, NFTs are described as Non-Fungible because each one is unique and has its own value.
Fungible Vs Non-Fungible Definition
An example of something fungible is traditional currency. For example, £10 cash is a fungible or transferable currency because it has the same value whether it’s in bills, change, or wire transfer.
The same rule applies to physical works of art which are also fungible and can be bought and sold for the same amount of money they are determined to be worth, their value can be transferred to a different form, usually cash currency.
Something that is non-fungible, however, is unique, irreplaceable and nontransferable.
Ethereum is the second-largest cryptocurrency after Bitcoin and the leading blockchain service through which NFTs are issued. Every cryptocurrency exists on its own blockchain.
A system in which a record of transactions made in bitcoin, or another cryptocurrency are maintained across several computers that are linked in a peer-to-peer network.
The process through which the NFT is generated and the blockchain is created.
Crypto Wallet Definition
A crypto wallet is an app used to store and retrieve digital assets. Each wallet will have an address linked to it which you will need in order to transfer or acquire NFTs.
The Future Of NFTs
Whilst there has been a lot of debate and speculation about NFTs and the surge in popularity they’ve had, one thing seems clear. NFTs are here to stay and the future of NFT art looks very promising, for artists, collectors and galleries alike.
In recent years, the art market has transformed and adapted to become part of the online world and this transformation has aided the popularity of NFTs.
Now that NFTs have staked a claim in the mainstream and become such a huge part of the art industry, there are endless opportunities and possibilities.
The Rising Value Of NFTs
NFTs have surged in popularity in recent years, especially since the big art auction houses got involved and began selling them, lending both prestige and validation to NFTs as a feasible art form and one worth investment and collection.
As well as the increase in demand for NFTs that resulted from the famous Christie’s auction of Beeple’s Everydays: the First 5000 Days NFT for $69 million, another component driving this trend forward is the growing popularity of the metaverse.
Owning the NFT original file of an image is very different from simply owning an image file or animation on a computer because with an NFT you have the proof of ownership.
The main attraction of NFTs is the ability to establish ownership and back it up with three very valuable characteristics: authenticity, scarcity, and permanence.
Because NFTs enable this built-in proof of ownership and exist within a secure, decentralized space, they are extremely hard to corrupt and as good as impossible to replicate, because the token itself exists on the blockchain.
Due to technological advancements and the shift to the metaverse, as well as the growing demand for NFTs and cryptocurrencies, the value of NFTs is set to continue rising and becoming an integral part of the art market and the art industry at large.
Common Ways To Display NFT Art
In your crypto wallet, your NFTs will appear as a code, to be able to visualise your actual digital assets and NFT art pieces, you’ll need to connect your crypto wallet to an NFT reading platform.
- TV monitors and LED screens
- Digital frames
- Metaverse galleries
- iPads and tablets
- Social media platforms and websites
- Physical copies
Popular NFT Marketplaces
Due to the popularity of NFTs, there have been a number of NFT marketplaces popping up and establishing a presence, the main Ethereum NFT marketplaces are:
What does non-fungible mean?
Fungible is another way to say replaceable. Unlike bitcoin or other cryptocurrencies, NFTs are all unique non-fungible tokens. If two people own one bitcoin each and they exchange them, after the exchange, they will both still have 1 bitcoin. NFTs being unique tokens means they are unique and non-replaceable (non-fungible).
What is crypto art?
Crypto art is digital art that gets the same treatment as physical art. This is because, just like with original paintings or limited editions prints signed by an artist, NFTs gain their authenticity and guarantee ownership thanks to the token ID assigned to each NFT.
What is minting?
Minting is the process through which an NFT is generated, validating information, creating a new block and recording that information on the blockchain.
Are all NFTs bad for the environment?
NFTs can be held partially responsible for the emissions generated by the cryptocurrency industry, however, NFTs don’t have to be bad for the environment and there is a push for more sustainability in the crypto world, with an increase in renewable energy and decreasing emissions.
What is the blockchain?
Blockchain technology is a shared ledger system in which a record of transactions made in cryptocurrency is maintained across several computers that are linked in a peer-to-peer network.
Why is the blockchain safe?
Blockchain technology is secure because it is both decentralised and distributed, this means that there is no single point of failure and that makes it much harder to corrupt. While blockchain technology isn’t immune to being hacked, being decentralised gives it a much better line of defence.
Why do I need a crypto wallet?
Your crypto wallet is the place where you can store your NFTs and through which you can purchase Ethereum (ETH).
What can I see in my crypto wallet?
In your crypto wallet, your NFT will appear as a code and you will be able to see the token ID of your NFT on the blockchain.
How do I see my NFT art?
Given that in your crypto wallet your NFTs will appear as a code, in order to visualise the actual image you’ll need to connect your crypto wallet to an NFT reading platform.
Will NFTs be used in the metaverse?
The metaverse will allow people to showcase their digital assets in the virtual world, NFTs acting as the proof of ownership of those assets. These digital assets will include land and real estate, art, music, fashion items and more.