What are NFTs or those new virtual tokens everyone is talking about?

You just realized the essence of Bitcoin and now new encryption NFTs are emerging. The Not replaceable Code (NFT), or non-fungible symbol in French, made an interesting introduction at the end of February In the world of digital art And the Many of them do gold work.

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The NFT market made history on Thursday, as digital artist Beeple – real name Mike Winkelmann – was able to sell his work in a digital auction. first 5000 days jpg format with more than $87 million. He had never seen one like him. At the end of February, this same artist sold for 8.3 million dollars a short video titled crossroadwhere we see Donald Trump lying naked on the lawn and covered in very matte marks.

This is not all. Do you remember the cat Nyan? This cat-pop-tart-rainbow GIF will turn 10 years old this year, and its creator had the foresight to sell a unique copy of his masterpiece at auction. The auction was held on a cryptocurrency art platform called Foundation and the artist managed to raise a large sum of $740 thousand.

That same week, singer Grimes sold $7.5 million worth of digital business in the form of NFTs. Recently, Twitter founder Jack Dorsey followed the trend and auctioned off a signed tweet. All this leads us to the next idea… What is an NFT?

What is NFT?

First, you should know that these digital tokens represent something unique in the world and unlike well-known cryptocurrencies like Bitcoin, NFTs represent something rather than a monetary value. In other words, by exchanging your token, you will own a completely different “item”.

Like artwork, tokens are traded on platforms like Nifty Gateway based on supply and demand. It is also from this site that most of the new “crypto artists” auction their work.

The non-replaceable code is based on . technology blockchain Ethereum, or blockchain in French. This is the complex database that allows transactions to be performed using cryptography.

With the purchase of NFT comes a unique Certificate of Authenticity that allows to identify its owner and, therefore, it is impossible to steal its possession!

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collection of untouchables

You ask “but why spend a fortune on a GIF that you can save to your desktop”? Like sports cards that have increased in value over time, collectors strive above all to own an original work.

In fact, digital art is only one way to use NFT technologies.

“In fact, it can be used to represent ownership of any unique asset, such as a bond to an item in the digital or physical domain,” the Ethereum website reads.

Besides art, NFT makes its mark in the world of sports. The new NBA Top Shot platform allows collectors to purchase videos of great sporting moments. In just a few weeks, the platform generated over $100 million in sales.

We haven’t finished hearing that

Everything indicates that NFT is only in its infancy. Already, many GIFs that have become internet classics are being sold with small fortunes and nothing seems to be stopping the trend.

According to Ethereum, the lives of digital artists are changing just like the concept of intellectual property in a digital business.

“NFTs are currently taking the world of digital art and collectibles by storm. […] If Andy Warhol was born in the late ’90s, he probably digitized a file Campbell’s soup To create an NFT,” says Ethereum.

The cryptocurrency platform sees further: “One day, your car ownership can be proven using NFT.”

Sources: Ethereum, business Insider, The New York Times.

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