To start talking about NFT (Not Fungible Tokens), which were created for digital artists or simply for those who like art and handle a certain number of technological tools. It is important to define them as a kind of digital Certificate of authenticity in the blockchain. NFTs are closely tied to the cryptocurrency market.
A bit of history about NFTs
The auction of a digitized image under a JPG format whose name is: “THE FIRST FIVE HUNDRED DAYS” recently caused a worldwide impact, considered a work of digital art, whose value in cryptocurrencies reached sixty-nine million dollars (USD 69,000. 000), not even its creator could understand what was happening and the cost that his work of art reached.
It is a trend that will get super interesting since it intends that the NFTS can reach a value as high as that of the works of art by Picasso or van Gogh. Many skeptics consider it to be a new bubble about to burst.
If bitcoin was hailed as the digital answer to the currency market, NFTs are now considered the digital answer to collectibles.
What are the objectives of NFTs?
The object of this new digital tool, in addition to making an interconnection between digital contracts or SMART CONTRACTS and cryptocurrencies, allows the creator of the NFT to place a unique property stamp on their work of art, make transactions, offer them to third parties, put it in galleries, but, all with its digital signature.
The NFTS is called in the digital market crypto asset.
What is intended is that the creators of these works containing bits and bytes can claim their originality and right of creation and thus obtain an economic benefit based on this type of crypto assets.
To carry out operations with these NFTS, it is essential to have a crypto wallet, where this type of operations can be stored and it is in this step where BITCOIN enters as the main form of payment for said NFTS.
NFTs are believed to be able to revolutionize the art market, according to curator and art market expert Christina Steinbrecher they have been waiting around 20 years for a technical standard where digital works of art can be considered unique and easily marketed.
The concept of digital property that is given to this type of works through the NFTs, allows their commercialization through online platforms and whose cancellation is made in cryptocurrencies, which is interesting because it is there where users endorse this type of digital operations without making use of the typical currencies, but by endorsing the use of cryptocurrencies with greater intensity.
Every day that passes, new people tend to emerge, who quickly become artists creating NFTS where in some cases it only takes a time between 20 and 30 minutes, but, which will generate an unprecedented income, works valued at unimaginable prices.
Although they have been around since 2014, NFTs are gaining traction now because they are becoming an increasingly popular way to buy and sell digital artwork. Since November 2017, a staggering $ 174 million has been spent on NFT.
Thanks to using a well-known and popular technology, it is very comfortable to operate with them to buy and sell them using certain wallets that also work with Ethereum, which represents the use of cryptocurrencies for the cancellation of said assets.
However, we are talking about unique works, so there is no active sale as in digital currencies.
Differences between NFTS and cryptocurrencies
NFTs are non-fungible, unlike cryptocurrencies, which are fungible; they cannot be replaced by another identical token with the same value.
To understand us, 10 Bitcoin or 10 Ether are worth the same as 10 Bitcoin or 10 Ether, even when they change hands (without entering their value at the exchange rate in other currencies).
But an NFT of digital artwork is unique and its value cannot be equivalent to that of different digital artwork because they are not the same.
Cryptocurrencies are a type of digital currency, which can be bought, sold, or mined. NFTs are not currencies, but digital assets, and, yes, they can be bought and sold, but not mined.
Now, what can be done is to create an NFT or tokenize digital content.
You can also: sell digital artwork
On the other hand, determining the exact value of an NFT is difficult, as this asset class is relatively new.
Investors looking for NFT may have a hard time deciding whether a particular asset or collectible is worth their money and if they want or need it, but the newness of this concept of digital art generates three main factors to measure its value. Also, aside from art, oils are now available for trade at oil profit.
And these are Utility, tangibility, and rarity, although the value that makes more than one millionaire resides in its short-term and long-term resale value.