The NFT technology (French non-fungible tokens, editor’s note) is made just for you. Indeed, thanks to this technology – based on “smart contracts” of cryptocurrency – you can obtain a certificate of no tampering with your purchase, a kind of digital title deed that attests to the uniqueness of your property.
At first glance, all this may seem a bit vague or without much importance. However, a “NFT revolution” is underway according to many industry professionals. These certifications are blasting the next generation digital art and video game sectors and possibly more to come. A short guided tour into the strange world of NFTs and cryptography.
Buying, collecting, reselling and speculating
American artist Pebble (Mike Winkelman) has sold a digital image in the name ofEvery day: the first five thousand days“For more than $69 million by Christie’s auction house in New York. However, this digital image can be referenced in the NFT and downloaded by all Internet users who wish to do so. This is not the case with the master table that has been kept precious sight. , in the physical world.
But why would the buyer of this image pay that much? Not for the value of Beeple’s digital work as such, but because it was sold with its NFT. NFT makes it unique and traceable. Its digital certification indicates that it is indeed the artist’s original work. It also indicates who sold it, who bought it, how much and when.
NFT for me is a trojan horse of the blockchain in the physical world and it will spread little by little in all sectors.John Karp, author of “The NFT Revolution, The Birth of the Crypto-Art Movement”
Thus, this digital collage by an NFT-certified American artist can now be sold at another auction, where everyone can verify (most often on the Ethereum blockchain, see box below) its authenticity and travels.
In addition, if the value of the cryptocurrency that made it possible to obtain an NFT certificate for this image increases, the value of this image to the owner of the NFT will increase.
10% increase in Ethereum cryptocurrency and the company acquiringEvery day: the first five thousand days He’ll see his digital business go from $69 million to more than… 76 million.
Technical operation of NFTs in a nutshell
NFT stands for “non-replaceable token”. The The principle of “tokens” is related to the principle of the blockchain, Decentralized computer protocols allow Encrypt and secure financial transactions over the Internet. The The most important blockchain is Bitcoin (BTC). a Code In the blockchain allowedAttest to the validity of the transaction. It is tamper resistant.
NFTs are mainly used The second largest blockchain (after Bitcoin), His name is Ethereum (ETH). This blockchain Ethereum contains a cryptocurrency, Like Bictoin, but it allows In addition from smart contract management, What the BTC blockchain can’t do. and lo Cross-platform systems allow buying NFTs with Bitcoin. The Therefore, NFTs are technically “smart contracts”, created in the vast majority by the Ethereum blockchain (which is also a cryptocurrency).“
Everyone enters the NFTs
Since this year, the total value of sales of “virtual object certificates” – popular NFTs – has increased tenfold compared to 2020. It reached $2 billion in the third quarter of 2021.
For example, Twitter CEO Jack Dorsey sold his “first-ever tweet” as NFT for $2.9 million in March of this year. A pixelated avatar has sold for over $5 million on CryptoPunk, one of the first NFT platforms.
But far from these astronomically priced auctions, the all-consumer NFT market is emerging.
NFTs allow more and more creators to make a living from their art. The main reason is that the number of pools has doubled.John Karp, author of “The NFT Revolution, The Birth of the Crypto-Art Movement”
That’s why John Karp, author of The NFT Revolution, The Birth of the Crypto-Art Movement, says that “It looks like NFTs will become necessary in the future“.The specialist sees in it the transition from the purely virtual economy, to the cryptocurrency economy, to the physical world, or at least to the real economy.”NFT to me is a trojan horse of the blockchain in the physical world and it will spread little by little In almost all sectorsJohn Karp says
NFTs can actually be attached to real things like the Dom Perignon champagne bottle that Lady Gaga wears. This bottle is sold in NFT which creates a feature on the physical bottle as well as its “digital reproduction”, in 3D.
“The world of fashion is diving into NFT, there are already luxury virtual clothes for example, which can only be worn on Instagram, with the filter system‘,” explains the author of The NFT Revolution.
The principle of NFT is also developing – of course – in video games, often associated with cryptocurrency. Axie Infinity and Sandbox are the most famous. The premiere offers to buy, breed and sell virtual creatures in NFT. The second is “metavers” where players develop their characters in a virtual world. The Sandbox consists of building, creating things, buying and selling, thanks to its SAND cryptocurrency, which, of course, allows virtual property management by NFT.
The four main characteristics of NFTs:
Transparency: users NFT . platforms All deals can be seen In Transaction Explorer, As with any blockchain (“blockchain”, a computer protocol that allows cryptocurrency transactions).
stability: The Created NFT files cannot be copiedwhich makes Unique tokens associated with unique items.
Decentralization: There is no entity or natural person centralized exchanges, The control exchanges happen by Algorithms from All participating machines, without central authority.
protection : creature (Especially) Powered by the Ethereum blockchainThe The non-fungible tokens are stored in secure databases spread around the world. from checkups It is powered by All computers that participate in the blockchain.
The art of cryptography and the new economy?
John Karp believes that NFT will usher in a new golden age for artistic creativity. “First and foremost, NFTs allow more and more creators to make a living from their art. The main reason is that the number of pools has doubled”, explains the specialist. This new economy has been called crypto art. It is defined as an alliance between the technologies offered by cryptocurrencies and art.
For the author of “NFT Revolution,” crypto art offers a possibility for artists to break away from reliance on online music platforms. “The fact that artists get a tiny fraction of the income generated by listening to their work on streaming platforms is a contradiction. The Internet creates a direct relationship between artists and their community, so there is usually no need for intermediaries. NFTs allow to find this direct relationship”, John Karp says.
It is the possibility of creating an economy within the economy that NFT offers.John Karp, author of “The NFT Revolution, The Birth of the Crypto-Art Movement”
So the crypto art movement begins inFinding their trends and inventing new processes“, according to the author.”NFT is embodied in many ways and its possibilities are unlimited. NFT is a proprietary address but can also contain, in addition, the address of use or access, associated with the artist’s actions.And John Karp to give examples:Booba introduced 25,000 NFTs last week that give access to the linked video. The Kings of Leon group went further: with their NFT you get access to all their concerts.“
The author of “The NFT Revolution” believes that a real economic revolution is coming with NFT. “An NFT giving backstage access (behind the scenes, editor’s note) can for example be resold by its owner. It is the possibility of creating an economy within the economy that this technology provides.“, Concludes.