Non-Functional Token Key (NFT)

Non-Functional Token Key (NFT)

We are continuing the series explaining the key words in the vocabulary of entrepreneurs in the new economy. Here are the terms and expressions you need to know: Learn about new tools that will grow your business or help you speak the same language as consultants and investors. Today’s entry is.

Non-Functional Token (NFT)

Which is: Non-fungible token (NFT), or non-fungible token, in Portuguese, is a kind of certificate of authenticity that proves that a person owns a digital asset (a work of art, a video, a GIF). Even a pair of virtual sneakers)

A “token” is a crypto resource that digitally represents products and services in the physical (or digital) world. “Fungible” refers to a product that can be exchanged, exchanged for another that is identical or of the same value. A ten-original note can be exchanged for the same one or two fives. Therefore, non-fungible means something that cannot be split or exchanged – precisely because it is unique.

How it works: Digital assets (such as a picture) become an NFT when registered by technology Blockchain, To achieve a unique string of numbers. Resources are known Tokenized. Thus, anyone can verify its authenticity and ownership, making it virtually impossible to counterfeit.

The more popular an asset, The most valuable She will. Think of the Mona Lisa: you can even print a copy and paste it on your wall, but most of these prints will have an emotional value, because the original canvas will be unique. NFT lets you authenticate a digital work, making it unique, even with millions of digital copies scattered across the web.

According to CB Insights – which cites the NonFungible website as a source – by the end of March 2021, the total value generated by the sale of NFT was 500 500 million (read the text in the “Learn More” item at the end).

What is it for: To sell any verifiable digital item. By purchasing an NFT, a person acquires ownership of a property that no one else can claim – even if it is a token ownership.

Cryptocurrency expert (he was one of its founders Bitcoin tradeWith which he is no longer attached), Daniel Kokuiri explains that today NFTs are mainly used in the collectible category.

“It’s a great case NBA top shot, A platform that tokenizes photos and videos of NFT dramas By acquiring these records, the buyer becomes the owner of the moment. “

NBA Top Shots digital card sales are already 297 million. Does buying scenes from games or buying original versions of memes and GIFs sound like crazy? For collectors, what counts is the emotional connection and exclusive feeling associated with the lack of that tradition.

“Some people collect everything,” says Daniel. “For me, owning an NBA-only image doesn’t make a difference. But for those who are interested in it, it can be very valuable.”

When it came to: NFTs have been around since the mid-2010s, but the popularity of NFTs began to draw attention in 2017. CryptopanksFrom the game studio Larva Lab. This is a collectible game with 10,000 avatars created using algorithms. There are avatars with human, alien, primate and zombie forms. And neither is like the other. Thanks to NFT, one of them, the CryptoPunk 7804, sold for 5 7.5 million.

In the same year, d Dapper Labs Launched CryptoKitties, A game where players can collect, create and sell digital cat statues. 10 thousand avatars were also made; One of them, the Dragon, sold for about 1 1 million.

“You can see how this technology is still in its infancy,” said Daniel. “Four years ago, NFT was used to collect these kittens. Today, the application is almost the same. “

Industrial market NFTs: One of the pioneering uses of NFT in the industrial world was in 2014 in New York Hackathon Bringing artists and programmers together. In an article AtlanticAnil Das, CEO ErrorHow he and digital artist Kevin McCoy created an “initial version of a blockchain-backed media to claim ownership of an original digital work” (read the “Learn More” section).

NFT is used for digital artwork to protect online copyright. Through non-fungible tokens and smart contracts, artists are able to incorporate their identities into creation. According to Daniel:

“In addition to obtaining a certificate of authenticity and ownership of digital artwork, in some cases, with NFT, the buyer is guaranteed the right to print the painting and access related information and services.”

Non-fungible tokens also make it possible to monetize digital artworks, which until recently had no value at auction – and today more than a million dollars for NFT. The artist can sell his work as a unique origin and determine how many replicas exist by increasing the interest of the collector.

NFTs are seen as a way for artists to regain financial control over their production. For example, a band may sell their work by tying unpublished or limited material to the NFT, accepting royalties without the intervention of distributors, managers, record labels, ticket sellers, etc.

Opportunities for the company: In addition to preventing industrial piracy, the logic of NFTs can be used in other cases. According to Daniel:

“Let’s think of someone who owns a Ferrari and wants to access a digital manual. How does he guarantee that the file is an authentic Ferrari document? Via an NFT attached to that PDF. “

It’s not just about the luxury market. For companies, NFTs are a way to create real-world experiences for brands in the virtual world, exploring the emotional connection or nostalgia of consumers.

Potato chip brand Pringles, for example, has launched a “virtual flavor” on NFT with only 50 versions available and prices starting at 0.0013 ether (about ড 2). Oh Crypto Crisp The artist is represented by the work of art.

Transactions with NFT: The NFT-related sales that caused the most uproar were American artist Bepel (pseudonym for graphic designer Mike Winkelman). In March 2021, he sold a JPEG file, “Everyday – The First 5000 Days”, with 5,000 photo collages collected since 2007 for .3 69.3 million.

The transaction was brokered by Christie’s Auction House. Its competitor, Sotheby’s, has joined the job auction with NFTs.

Canadian singer Grimes has grossed about $ 6 million with a set of digital artworks he created at an event and has been registered as a non-fungible token.

Kings of Leon became the first band to record an album on NFT. Available on streaming platforms, When you see yourself Won the unique tokenized version that offers exclusive art and lifetime tickets to group shows.

At an auction in February 2021, V designed a pair of virtual sneakers RTFKT Studio Cryptartist has raised over 3 3 million in partnership with Fio – in just 7 minutes. 600 pairs sold; Buyers received a physical copy as a “gift”. The digital version can be used on platforms or games like Snapchat.

Twitter CEO Jack Dorsey sold his first Twitter NFT for $ 2.9 million. The money raised was donated to the Africa Response Fund to help combat the epidemic.

The NFT of a kitten meme, Nyan Cat, made by American Chris Torres, was acquired for about 600 600,000. As the commercialization of memes increased, Chris created “memeconomi”, a meme auction event.

Even journalists are riding that wave. In March 2021, Kevin Rouge, columnist New York Times, Sold to NFTs, an article (about NFTs!) For 3 563,000. According to the newspaper, the money raised will be donated to charities.

In Brazil: According to Cryptoart.io, Brazilian plastic artist Eatin CrossThe 20-year-old has already sold 15 jobs and made about 6 376,000. Text in Cointelegraph (Read the “Learn More” item) list Nino Arteiro, Vamoss, Tony de Marco, Alexandre Rangel, Monica Rizzolli, Uno de Oliveira, Marlus, Lukas Azevedo.

Rocker Supla was the first singer to ride on non-fungible tokens. He made up a TikTok video for about 10,800 races.

Where to buy and sell: There are several platforms for interested collectors and investors to buy and sell assets associated with NFT, e.g. Makersplace, The open sea, Rare, Very rare And Dematerialized.

Today there are at least two Brazilian platforms dedicated to selling music with non-funky tokens: All protected It is phonogram.me.

Difficulty: The key is to consume huge amounts of electricity in blockchain transactions. Decentralized, this technology requires a large number of computers to create an NFT and leave their processing capabilities for protocols and calculations to verify transactions from one digital wallet to another.

According to Gizmodo, NFTs sold by Grimes consume 122,416 kilowatt-hours of electricity – enough to power a family for 34 years in a developed country. Recently calculated by Cryptoart.wtf, an online calculator Off By its founder) who estimated the environmental impact of encrypted industry.

While some experts point to the risk of market bubbles, others claim that as cryptocurrencies continue to generate interest and profits, so should non-fungible tokens.

Over time, Daniel says, this technology puts aside the hype of meme sales and creates more mature and practical value. A use document may be for authentication. For the sale of digital artwork, he warns:

“You have to be careful because NFT is advertised in the market which is a fraud. An artist arranges to expand his work with the players so that the issue comes up in the media and attracts buyers and then promises to return the money to those involved in this speculation.

To learn more:

1) Read Edge: “NTFs, explained”;
2) Check in Money Times: “Are non-fungible tokens (NFTs) just a fad or are they worth millions?”;
3) Read Team: “Digital NFT Art Booming – But at What Cost?”;
4) Check on Cointelegraph: “Brazilian artists are growing with sales of NFT and tokenized art”;
5) Read New York Times: “What is NFT, anyway? One sold for just 69 million “;
6) Read Gizmodo: “How to fix the carbon pollution problem of crypto art NFT”;
7) Check Atlantic: “NFTs weren’t supposed to end that way.”;
8) Access its text CB Insights: “NFT: Is Spotlight-Stolen Blockchain a Cash Grab or the Next Big Thing?”.

Total views 6671 Viewed 4 times today

Leave a Comment

Your email address will not be published.