NFT : The Modern Collectibles !!!
Non Fungible Tokens[NFT] are one of the sizzling hot topic from few months.
You might heard tweet that was bid for 2.5million dollar and JPEG file sold for over 69 million dollar , but how can digital file that available for everyone can be so highly valued . That is possible due NFT where everything is unique and virtually everything can be bought and sold.
What is Fungible and Non Fungible ?
Fungible item is where anything that can be replace by another item having identical value . Example one bitcoin can be exchange for another single bitcoin or two fifty rupees note can be exchange for one hundred rupees note and still they carry exactly same value .
Non-Fungible means totally opposite which means no exact replacement exist , which make item unique and valuable . For example take a Monalisa painting , we could take a photo or make exact replica of painting but it would never be same of having original one .
Non Fungible Tokens[NFT]
NFT is a unit of data stored on a blockchain (a digital ledger) which can represent a unique digital item . Digital item can be anything like image , video ,file ,tweet etc .
In short and sweet word NFT is basically entry of any digital item on blockchain with provide digital certificate of ownership of that item .
These digital certificate of ownership can be buy and sold for many time and there is record of ownership history .so next time if we heard this NFT sold for this much dollar which means digital certificate of ownership is sold .
Why NFT worth so much ?
Digital artist beeple sold NFT for $69million at auction , set highest record for digital art . Animation of a cat sold for $590k , pixelated drawing called cyberpunks sold for $1.5m , 10-second video clip sold for $6.6m & are many more NFT which sold over millions of dollar .
Someone bought this cat GIF for half a million dollars .But what buyer get is digital token or digital certificate of ownership which proves he/she is owner , still they don’t have any right of on GIF ,they can’t license out that ,they can’t ask anybody to not to use it for any commercial use or for anything .
Similarly NBA also come with NFT in which include small video clip of top basketball player the league association already sold $300 million worth of NFT’s . Each video or NFT is different,unique and can have only one owner . So there is value in scarcity & prestige of being a owner of a token or NFT .
But why buyers are paying for any video or image which is freely available on internet to view ,share & download . like anything something is worth as much as someone is willing to pay for it to become a owner . There is certain amount of pride of being a sole owner of original piece of music , PDF ,image or any digital art or they might think art they are buying may get more value in future .
NFT is a bubble waiting to burst ?
“I actually do think there will be a bubble, to be quite honest , and I think we could be in that bubble right now ” — beeple told to BBC
“The idea of buying something which isn’t there is just strange” — Former Christie’s auctioneer Charles Allsopp said to BBC
David Gerard, author of Attack of the 50-foot Blockchain, said he saw NFTs as buying “official collectables”, similar to trading cards .
Different people may have different opinion but NFT offers more than images and video files . As we know anything which present digitally can be a NFT so there are also many different use case of NFT .
Use Cases of NFT
- In gaming industry , we play a games and sometime we buy or purchase some special feature in games like costly skin , cars , guns ,map,track ,avatar , some special point or features , using NFT these items can be transferred or resold .
- In music industry ,Kings Of Leon have generated over $2million from non-fungible token (NFT) sales of their latest album ‘When You See Yourself’ . Calvin Harris says that NFT has the potential to “completely revolutionize the music industry” .
- NFT can be used to monetize a person’s time or skills . Micro-sponsors launch NFT Market where users can monetize their time , podcasts, live streams, videos, newsletters, fee lancing, services etc .
- NFT can be used to buy domain names , decentralized crypto loans.NFT can represent medical reports,house,cars,business documents or license or any type of document ,license or certification . which verify the owner and prove authenticity of document .
- Nike published a patent in which Nike say customer can verify the authenticity of the shoes also other benefits like virtual shoes which can be used in games , breed new shoe models and many more . so NFT base sneakers could be coming soon from Nike .
Apart from this crazy price for images and video . NFT can be used in wide range of industry .NFT is still in rising stage so we might see more and more use cases . so in future NFT might become part of our lives .
So NFT is a bubble waiting to burst ? or it will become part of our lives ? only time will able to give the answer .