Non- Fungible Tokens (NFTs) have caused a frenzy as vast numbers of artists and investors warm up to the new technology. Numerous platforms trading these digital assets have emerged and created an opportunity for enthusiastic investors to own original and authentic pieces of memorabilia. Cybernetics, similar to blockchain, have made it possible to record and store information about item owners, first buyers, and successive purchasers.
Tokenized artwork quashes the replication of novel objects and reserves ownership to their respective owners. As a result of such a stratagem and standards (ERC 721 and ERC 1155), the monetary value of an item goes up and also brings about its scarcity. The ability to own and trade an asset gives the owners latitude to liquidate as they wish.
Blockchain technology has given rise to different solutions due to the ability to manage digital data in a decentralized and uncompromisable manner. One of the products to come by is the non-fungible tokens (NFTs). To better understand what these tokens are, one has to differentiate between fungible and non-fungible items. A fungible asset can be exchanged with similar items of the same type and value, e.g., money, bitcoin, etc. On the other hand, non-fungible assets are markedly different with each token being unique, transferable, and of distinct value from the other.
In addition to the ability to trade in real-world assets, NFTs eliminate go-betweens who would otherwise connect owners and potential buyers, making the sale process more efficient. Other extras include minimal fraudulent deals, protection of people’s particulars, and their ownership rights.
Digital collectibles or NFTs memorabilia cut across items from the ART world- where they encourage originality and exclusive ownership rights to the artist.
- Gaming — Players use the money to purchase in-game items and unlock certain game profiles. Through blockchain, players can make these gaming tokens rare and more valuable while they remain own-able in an effective manner.
- Sports — This area has formed a big part of NFTs collectibles ranging from the NBA Football Athletics Sports companies etc. In the NBA, memorable occasions of players and teams are highlighted and presented in packs. An example of this is the NBA Top shot found on the Ethereum blockchain. Similarly, in football fantasy games, participants can form teams by buying cards of their favorite players and teams that they use to constitute teams with the qualities they like/follow.
- Music — Artists in this industry have relied on intermediaries and music selling platforms to distribute their songs and albums for a long time. Lately, they have also turned to live streaming and virtual shows where they have equally not realized the full value of their labor. Using NFTs, artists can monetize and save their music by creating “collectibles” out of their works. These products may include audio, video merchandise, music artwork, unreleased tracks, tickets, etc. Such creativity opens up a huge world of possibilities to music creators and a whole better experience for their fans.
- Film: The issues of demand and supply have severely dented investment in film. The process of making a movie/film has become easier with advances in technology compared to a few decades ago. This has brought about the release of many movies, where their demand and their revenue streams have dwindled. With NFTs digital copies, a filmmaker can create a short movie clip, cover images, or still photos of their films which can act as a preview of the whole movie, and go ahead and sell it as an original digital copy. The buyer who gets this copy can go ahead and sell the digital asset in the future at an appreciated price, and the film owner earns a percentage as per an entered agreement.
NFTs have been around for some time now and their ability to represent worldly items in their real state has created a world full of possibilities across various areas as aforementioned. According to recent statistics, the hype and rise in investments and trade volumes have made detractors suggest that this may be a bubble, but the pundits claim otherwise, implying NFTs are going nowhere and are here to stay. This element of authenticity and scarcity has so far made people spend an incredible $2 billion in the last four years. A Crypto Artist named Michael Winkelman or professionally known as Beeple, made a fortune and became one the most valuable artist at the moment by selling his collage art for a staggering $69 million at Christie’s. This was a work titled ‘Everydays: The First 5000 Days’ where he collaged his sketches and illustrations made over several years.
Ethereum blockchain is among the first decentralized platforms to facilitate NFTs. Electronic data identifying various tokens through private keys are stored, and no one can claim ownership of a token except its real owner. Other blockchains using dissimilar technologies like Binance smart chain have risen and can facilitate NFTs, thus having different marketplaces dealing with different types of tokens. The various available Market places include Opensea, Superrare, Rarible, Nifty Gateway, foundation, Atomic Market, etc.
If you intend to create your own NFT, be it a piece of art or sports memorabilia, there are several considerations to make:
Wallet — A wallet is a must-have tool to make a niche in this business. A good wallet should be easy and simple to use, especially at the establishment stage. The wallet should support various digital ledgers and the blockchain network you intend to use.
Marketplace — This is where NFT Creators and buyers trade their digital assets. These markets support projects from different platforms using different cryptocurrencies. Popular marketplace like Opensea supports Ethereum and Polygon technologies, and users can sell their assets by setting prices or through auctions.
Gas Fee — This is a fee that a user pays to have their transaction processed. A structure of demand and supply determines how high or low the fee is.
In conclusion, NFTs innovation has revolutionized the art world by redefining what art is and, more so, creating an element of uniqueness and authenticity. Artists are now realizing the real value of their works. They are no longer shying off from sharing their products to the public due to the little gains realized and copyright issues. The future holds immense opportunities in the NFT space, especially in the art and memorabilia world.