by admin - 7 Apr 2022

NFT is a transformational paradigm shift to all digital transactions!  

Would you believe it if I said that a new form of digital transactions is making it big in the cryptocurrency market, and is spreading like wildfire, allowing transactions of digital products based on their emotional value, rather than its price?  

If not, be prepared to be amazed as you read further.  

What, in the name of God, is an NFT?  

In simple hillbilly terms, NFT is a part of Ethereum blockchain, a cryptocurrency like dogecoin or bitcoin, but it differs in one aspect from the rest — “Ethereum supports NFTs”.  

Well, it doesn’t sound that simple, does it? Leonardo Da Vinci’s daughter in the painting of ‘Monalisa’ would ‘so’ agree with me. Well, who knows, she is so mysterious and complex too?  

However simple the definition or explanation may be, it still doesn’t really help us get any closer to understanding what NFT really is.  

This means we must dig deeper. Well, not as deep as Mariana Trench. Duh?!  

NFT stands for Non-fungible Token. But what’s “fungible” in the first place? Fungible means something that can be replaced. For example, a bitcoin or dogecoin can be replaced with the other, as any currency would! 

So, Non-fungible means something that can’t be replaced. But what does that really entail?  

Ask Jack Dorsey, the CEO of Twitter, who sent out an autographed tweet, following which the tweet was sold for a whopping $3 million.  

Can you believe that?  

Heck, if you don’t believe that, I’ll give you more crazy over-the-top examples to rest my case.  

A digital rendition of the Nyan Cat meme was sold for US$590,000 in an online auction recently. Not just that, we even have examples of people paying with clipart of work in exchange for house money or any other kind of payment. Another interesting example would be the $3,600 Gucci Ghost. And the list of examples literally goes on.  

If you are starting to realize the quirkiness of this new transaction system, welcome to the digital matrix we now know as NFT!  

NFT works in a remarkably different fashion, unlike other cryptocurrencies. For now, it is limited to digital products; especially buying digital works of art. That doesn’t mean it won’t reach the real-physical-tangible world soon!  

There have been several attempts at connecting NFTs to real-world products, as a verification method. Nike patented a method to verify sneakers’ authenticity using an NFT, and they are calling it ‘CryptoKicks’. There is a plethora of such mind-blowing examples.  

But how do you know which one is authentic? There can be so many copies of digital artwork, right? 

Let me explain to you a bit more about this.  

Any digital product like artwork, illustration, painting, music, even video clips, or your brain installed in an AI, can be sold in the market using NFT.  

If you have three digital illustrations or artwork that are the exact replicas, then how do you know which one is real or original, and has actual value?  

If one of the illustrations, for example, is signed by Banksy, or an artist of such stature like Picasso or Dali and the like, or any such incidents or people have added value to the product, it will have emotional value and can be sold using NFT for sure. There is a specific value of NFT attached to the said product. So even if it has multiple copies, the product you buy using will have authentic value.  

Any digital product or object can be traded or bought using NFT, given it has some emotional or additional value attached.  

So, NFT items don’t have a value of their own. Rather, its value depends solely on the value of these digital products (artwork, music video, or so). Recent purchases of NFL video clips using NFT have been making quite a buzz on the internet! Ever since, the NFT transactions have been frequenting at a blazing speed!  

So, now we know that even music or videos can be sold using NFTs. Its NFT value solely depends on the value attached to the music or video.  

The NFT system helps in protecting duplication of original and authentic artworks. Even if 5 people own a digital copy of one piece of digital artwork, only one will own the original copy. At present, NFTs are used more for digital artworks, although their usage is not just limited to just that. 

We aren’t sure how much time it will take for NFTs to touch base with real life objects, but they are off to an amazing start at the moment.  

There are more examples of digital products being sold on the internet at the moment. Each story is as unique and fascinating as the other.  

Although, on the contrary, the naysayers aren’t sure how long it will last, some experts are claiming the mantle, and further emphasizing NFTs being the next big thing!