Grimes is getting millions of dollars for NFT, Nyan Cat is sold as a NFT, or even an autograph of Twitter’s founder is being sold as NFT. What really is a NFT? Why is it being the center of attention everywhere?
NFT is a non-fungible token that is irreplaceable and unique as it’s the only available piece in the world. Bitcoin is actually not a NFT as it’s fungible (can be replaced with other “bitcoin”). NFT can be anything as long as it’s digital, however, mostly it’s in the form of digital art nowadays such as fine arts.
Some say that the era of NFTs is already over, however, this is not true as there are penguin communities. Penguin communities (one of the most famous one, Pudgy Penguin) is a collection of NFTs and communities built around this are one of the earliest NFTs to date. This means that as long as there are communal activities surrounds it, the NFTs won’t die.
As an artist, NFT gives a way to sell work that there otherwise won’t have a wide market for. The NFT also has a feature where the artist can earn commissions when it’s being sold off again/ exchange hands. On the other hand, as a collector, NFTs can work for speculative purpose & ownership of basic rights.
Looking to the future, the market of NFT is still pretty bright (with increasing demand & products from various sides). It’ll give the arts another chance to be more appreciated (as physical art is more fragile).
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