What's the Hype around NFTs?
Written by Trinity Duong
With the explosion of cryptocurrencies in the past decade, a new form of “currency” and investment has emerged. Non-fungible tokens or NFTs are one-of-a-kind digital assets that belong to only the one who completes the purchase. The most popular NFTs take form in artwork and music but can also be videos and tweets. Creators of these works can make millions just for a collection or even a single final piece.
What even is an NFT?
Non-fungible means that what makes it so expensive is the uniqueness of the work, meaning that it can not be replaced by something else because it is owned by one sole proprietor. Because the pieces that are created are artworks, if you resell the work or exchange it, you will end up with something completely different that does not hold the exact same value.
NFTs are part of the Ethereum blockchain. The Ethereum blockchain is a cryptocurrency, and many other blockchains are hopping on this train to create their own versions of NFTs.
In the age of experimental technology and the innovation and incorporation of digital media in every corner of the internet and mainstream “real”, NFTs can be anything digital that is turned into artificial intelligence (also known as AI). The conversation of digital art as property is the current obsession.
Some have compared the purchase of these goods to fine art collecting. The comparison stems from the integrity of owning the piece. Because it is digital some argue what the value is if you can just screenshot it. The simplest example would be if you were to drive in a nice neighborhood and see a house that you love, simply taking a photo of it (equivalent to the screenshot) does not mean you own it. When you screenshot or download the same file you do not own the value that a person paid millions for. You will also not be able to exchange this card for something of other value. The design of an NFT is to give the buyer something that cannot be replicated. The ownership of the work contains copyright and reproduction rights.
The point of an NFT depends on what stance you take if you are an artist, a buyer, or a collector.
Some look at NFTs as the future of art collecting, some look at it as a ridiculous fad, and others as money laundering. However, the future of NFTs seems strategic and clear, something that will be around for the next century and more. The potential net worth you can pull in at any age through NFTs is exciting however, not everyone succeeds. The demand can go in any direction from videos of Logan Paul to basic 2D digital images to the most intricate detailed work.
There is so much more we could talk about with NFTs. For the sake of keeping things simple, this is an easy introduction to their potential value, how it works, and who can get involved. We will be talking more about NFTs in our upcoming articles so stay tuned. If you want to read more about the evolution of technology make sure to check out our article “Facebook and the Metaverse”.
