Why NFT’s Are The Next Craze.
If you’re reading this, you are probably wondering what an NFT, or ‘Nifty’ is.
NFT’s are Non-Fungible Tokens.
The easiest way to describe that is first to understand what Fungible means.
Paper fiat currency is Fungible, meaning it’s mutually interchangeable.
Holding or earning this paper fiat currency means you can buy, sell, and trade within a governed system.
You could have a $20 bill from 2012 in okay condition, and I could have a $20 bill from this year in mint condition – and they both represent the same value.
We could respectfully exchange our $20 bills with each other and purchase the same amount of goods.
“As a quantity of grain for an equal amount of the same kind of grain.”
Non-Fungible Tokens are unique for the reasons that they can’t be duplicated, are provably rare and verified with an extra layer of authenticity, and can be similar in category, content, or creator while representing different values.
You wouldn’t trade the original Mona Lisa for a Chewbacca Poster, even if it was signed by George Lucas and Peter Mayhew.
Even though they’re both works of art, the value attributed to them isn’t equal.
Their separately associated values would be blockchain verified and publicly agreed upon based on their comprehensive integrities.
NFT Art is an exciting, emerging market, with over $100Mil in sales already.
Platforms such as Rarible and OpenSea have enabled users and creators to upload, sell, and purchase provably scarce digital artworks.
They are blockchain verified, which solves the issue of digital files being replicated anonymously.
Most NFT’s are supported by smart contracts on the Ethereum blockchain.
Maneuvering the selling, trading, or purchasing of Non-Fungible Tokens requires a specific digital wallet and costs the user or creator ‘gas fees’ to utilize the blockchain which are comparable to transaction/shipping fees in real life.
The possibilities of this newfound realm are truly endless, with smart contracts in real estate, artwork, videos, physical contracts, and music (Kings of Leon announced their album as an NFT.)
You can screenshot an image of an NFT and hold it in your phone storage, but it’s only a knockoff of the original.
Kind of like buying a Vladimir Kush print instead of the original.
The digital signature verifies the authenticity of the item and the history of its creation, distribution, and holdings.
The new ‘owner’ of a recently purchased NFT may then accept a bid from another user at a higher price if it is offered, which just scratches the surface of Non-Fungible Token investment opportunities.
Another massive bonus to blockchain smart-contracts allows the original artist to gain commission off of every piece being sold, every single time it sells.
This solves the age-old problem of artists not benefiting from the future sales and recognition of their work.
Every time the NFT is sold on the blockchain, the original artist receives a pre-set royalty amount for their artwork.
Some of the most popular NFT’s of all time are CryptoPunks, CryptoKitties and NBA Top Shots.
Pictured above is a watermarked example of the first in a series of original digital pinup girls by NFTEAZE.
Only 70 of this particular design have been minted as tokens and are available for purchase or auction on Rarible and OpenSea.
This limited series is a great way to start your NFT collection because they’re provably rare, iconic, and affordably priced, for now.
This new facet of crypto-art has a tremendous amount of potential and endless possibilities on a global spectrum.
The Non-Fungible Token Train is still in the station and accepting passengers in terms of opportunity and growth.
I’ll see you onboard!!