At the beginning of 2021, the internet exploded with the news about emerging blockchain technology named NFT. Blockchain experts and enthusiasts claimed that NFT will significantly change the way we certify ownership over digital or even physical assets.
Definition of NFT
Abbreviation “NFT’ stands for non-fungible token. When we use the money to buy our favorite drink or bitcoin to purchase Tesla, we can easily interchange the money or cryptocurrency[1]. Basically, we can swap 20 PLN with two 10s and we will have the same value which means that money is fungible. NFT is exactly the opposite, every token is one of kind. For instance, you can not take the “LES DEMOISELLES D’AVIGNON” painting and swap it with ” GUERNICA” and expect to receive the same value even though these paintings were created by one author – Pablo Picasso[2]. So NFT is a unique digital asset that can be sold or bought like anything else[1]. The NFT is built on blockchain technology and can not be forged by anyone.
Why NFT ?
Nowadays, NFTs drastically alter the digital art industry and collectibles [3]. It is a very good technology to certify his and her ownership of an asset on the internet. Every NFT token is encrypted with the author’s signature, which later helps to prove the authenticity of the token. For instance, digital artist – Mike Winkelmann as known as Beeple sold his artworks for over $69 million at Christie’s auction[4]. This success positioned Beeple among the top three most valuable living artists in the World. A very famous GIF named “Nyan Cat” has been sold bringing its author $600 000.
Future of NFT technology
NFT is an incredibly interesting phenomenon and I believe that attention to this technology will be steadily increasing. When we think of digital artwork or even some product, we rarely question who owns it. It happens because the fact of ownership on the internet is fuzzy. Or how can you own something that can be endlessly copied? NFT proves that you can own a digital asset or even sell it. Fundamentally, real ownership in the art world is about owning authentic artwork, we do not claim that we own Mona Lisa if we have a copy hanging on the wall. So ownership is about authenticity and your rights on a certain asset. NFT does not change the fundamental understanding of ownership, it just transfers this well-known principle to the digital world and helps artists to monetize their creativity.
Sources
- https://www.bbc.com/news/technology-56371912
- https://learnodo-newtonic.com/pablo-picasso-famous-paintings
- https://ethereum.org/en/nft/
- https://edition.cnn.com/style/article/beeple-first-nft-artwork-at-auction-sale-result/index.html