NFTs or non-fungible tokens are tokens built over a blockchain. They use software code called ‘smart contracts‘ to prove ownership. When someone transfers their ownership, these smart contracts register the changes on the blockchain, thereby ensuring proof of ownership. NFTs are bringing a shift to how creative work is distributed. Their value will rise as more people realize their potential. This blog discusses why NFTs are set to transform how we view art in the coming years.
NFTs as heirlooms?
When talking about NFTs as heirlooms, the famous 20th-century painter Pablo Picasso’s late entry into the NFT world deserves mention. His family released NFTs of his ceramic artwork, a part of family heirlooms. People around the world acknowledge the value of NFTs. For instance, one of the first NFT art sales to grab headlines was the piece by artist Beeple, which sold for $69.3 million. Similarly, Twitter founder Jack Dorsey sold the first-ever tweet for $2.9 million. These were just the beginning as more people accept NFTs as an integral part of art and art forms.
What makes NFTs valuable?
NFTs are unique tokens with specific identifiers. Like cryptocurrencies, all NFT transactions use blockchain to maintain records. However, unlike cryptocurrencies, NFTs are non-fungible. To understand this better, consider normal currency, you can swap a 100 Rupee note for another 100 and still have the same value in hand. Therefore fiat money is fungible. However, you cannot exchange an NFT for anything else. It is unique and irreplaceable. Thus it is non-fungible.
NFTs are a new class of assets that are cryptographically unique. You can mint the entire range of media, including text, GIFs, video, games, photos, and music, and turn them into NFT art. Besides, they carry metadata that lets you insert information into them, like images, names, and descriptions. The blockchain acts as the medium where its unique code stands and registers any transfer of ownership.
These tokens cannot be copied or replicated. Plus, since blockchain records are public, anyone can view their history and origins. Here are some of the significant reasons why NFTs will become mainstream soon:
Authenticity of artwork
As mentioned above, NFTs are safe on a blockchain. Their public records ensure you can always trace their origins and check whether they are authentic or fake. Each NFT contract has a token ID and an address that links it to the owner. You cannot tamper with or change them unless you sell them to a new owner.
‘Fungible’ means interchangeable or replaceable. As the name suggests, NFTs are non-fungible. Each NFT is unique and one-of-a-kind. In contrast to Web 2, where millions of digital content exist without ownership, NFTs use blockchain to prove their ownership. For example, you can right-click over an image on the internet to save it and claim its ownership. But with NFTs, this is impossible. If you buy an NFT, you also gain its exclusive ownership rights. Your rights will be coded in smart contracts on the blockchain. And NFTs can have only one owner at a time which is the primary difference between NFTs and existing digital content. This is also the reason behind their value.
When you create an NFT, it becomes digitally unique and irreplaceable. You may be able to make copies of it, but there is only one original piece, which is the NFT. This scarcity can raise the value of an NFT as collectors find it more attractive. For instance, it feels more special to own an NFT with a single copy than an NFT with ten other copies. So, the scarcer the NFT, the higher its value.
In Web 2, artists had to depend on copyright to ascertain the ownership of their artwork. In contrast, Web3 and NFTs ensure that the original artists always get the credit for their creations. Plus, it provides that the ownership changes only when the owner decides to transfer it.
Earlier, third-party platforms used to earn lots of money by simply providing a marketplace for art sales. But with the arrival of NFTs, royalties come into being. In other words, artists who created the NFTs can earn from the initial and subsequent sales through automated royalties. This ensures a stable income stream for creators. Further, it ensured that they get rewarded if their earlier works increased in value.
Total freedom for artists
Today, there are multiple spaces and platforms to display your NFTs. Artists have complete freedom to choose where to display their NFTs. They can decide their prices and the royalty to go along with their NFTs.
Another notable change is the complete absence of tampering. With the high level of security that blockchains offer, artists and collectors have total security over their ownership documents.
Virtual assets as NFTs
NFTs are becoming the fundamental technology behind assets in the metaverse. Take the example of the project, the Sandbox. It uses NFTs to denote digital land, digital furniture, and digital decorations in virtual spaces. The project made over $144 million selling metaverse real estate through NFTs. Celebrities, including Snoop Dogg and Atari, were among the digital space buyers.
Coinfantasy is a fantasy gaming platform with NFTs integrated into it. Gamers have the option to pick crypto tokens of their choice. They get access to NFT gaming cards and stand a chance to win big rewards if they win contests.
NFTs and the gaming world
Gamers can rejoice because NFTs are becoming part and parcel of online gaming. Examples include holding crypto-collectibles in your wallet, player interactions, avatar purchases, and weapon trading. Moreover, play-to-earn gaming models will allow gamers to earn from NFT games. Today you can find multiple NFT games such as Coinfantasy and Crypto Kitties. If you want to know how to get started with NFT games, check out this article.
NFT is a young and ripe domain that is gaining traction day by day. Anyone with an internet connection can own NFTs. More and more artists are diving into this space, given the vast possibilities and opportunities. This is the first generation of NFT collectors. Once it is ready to pass on its valuables to posterity, we can expect a few NFT heirlooms among the lot.
You can also join the crypto gaming bandwagon with Coinfantasy. It is an innovative platform with a loss-less model. You can build a line-up of cryptocurrencies you believe in and participate in contests to earn rewards. Check out CoinFantasy to learn all about it.