What are NFTs and why people are spending millions?
Recently Christie’s auction house sold a digital artwork for $69 million.
A digital artist known as ‘Beeple’ sold a single NFT video for $6.6 million, Twitter CEO Jack Dorsey’s first tweet was sold as an NFT for $2.9 million.
All of you might be thinking why these people are selling things and that too digitally? And what the hell is NFT? If these are the questions in your mind then here you go! Get your answers right here!
What are NFTs?
NFT is famously called non-fungible tokens. Oh wait, i’ll make more clearer.
It is a kind of data that is stored on a digital ledger called a blockchain. Data can be of various kinds such as music, videos, art, or any type of content available online.
Unlike Bitcoin and other cryptocurrencies, NFTs cannot be interchangeably exchanged.
Bitcoin and other cryptocurrencies are fungible. What fungible means is- it can be exchanged and internally Each one is digitally unique. Every single NFT is different. This is why it is called ‘non-fungible.’
Now, Why Blockchain? Because blockchain is the safest way to store data digitally,
it works like a Barter system people can buy and sell things online without any middle person. Actually, this is how Blockchain functions.
Well, NFTs are quite a buzz in 2021 and since 2020 they have gained a kinda momentum. It is a great opportunity for content creators and artists. They are definitely having a future but only then if it’s not affecting nature in some way.
-Founder, Cybercore
When did NFTs start?
The technology started in 2015 when unique tokens were created for the Ethereum blockchain, but they came into recognition in February 2021. In 2021 an Artist Mike Winklemann also known as Beeple sold his digital art for $69.3 million. This is when NFT became the topic of discussion.
You all might be thinking why now? Why are NFTs trending now? What is special in 2021? So, this is because the environment now is suitable for NFTs, therefore NFTs are gaining momentum from 2020. As people are investing trust in Cryptocurrency growth of the NFT market is inevitable.
Popular buys in NFT till date:
- Beeple- “EVERYDAYS: THE FIRST 5000 DAYS”
- Pak
- Trevor Jones
- FEWOCiOUS
- Hackatao
- Xcopy
And many more artists.
NFTs are over rated at this point of time. Its like Supreme. The price depends on interest of people. But its ironically true that you can earn a lot from all these things as it’s just the beginning stage.
Cofounder,Cybercore.
What do you get when you buy an NFT?
According to Sources Alex Atallah, OpenSea co-founder and chief technology officer, the Ethereum NFT market in February 2021 generated sales 7450% higher than the same month in 2020.
NFT is like an investment strategy like bitcoin or gold. It is a unique way of connecting ourselves with artists.
When someone buys NFT they get rights to an inimitable token, only on the Blockchain. If someone buys content it will be uniquely stored only in Blockchain and they have no control over rights to its distribution.
Future of NFTs:
Well, this is kinda debatable but this is my personal thought :NFTs are creating craze right now, but the future of NFT is not well defined. The craze regarding this topic will be short lived at least in art sector. It is hyped right now which is grabbing attention of many people.
NFT affecting environment? know how.
NFTs are based on high electricity consumption which produces carbon footprints in excess amount contributing to global warming. It produces a high amount of greenhouse gases and therefore people are giving it a second thought to NFT and its future.
Some NFT marketplaces have announced commitments to sustainable practices in upcoming years for reducing carbon footprints. If goes well NFT is great in the upcoming years. Just need a little more attention towards the environment its always PLANET BEFORE PROFIT.
