Non-Fungible Tokens or NFTs first appeared in 2017 with their now popular Cryptopinks and Cryptokitties. They are pieces of digit media that can never be replaced or interchanged. The digital ledger of each transaction is distributed across networks of computer systems on the blockchain.
What is a blockchain?
In the simplest terms, a public blockchain is a distributed ledger, similar to a database, which has different key attributes.
- the ledger is distibuted across the network maintained my hundres of thousands of miners
- the network is decentralized and not owned by any one single entity
- the transactions are encrypted and difficult to temper
- one a data is added to the ledger, it can no longer be altered
Types of NFTs
NFTs are digital assets that link to internet collectibles and art, music, games, videos, and text created with a unique, authentic certificate on blockchain technology. Most NFTs are housed on the Ethereum blockchain. Because NFTs hold a value set by market and demand, they can be bought and sold as if they were physical types of art. Because of blockchain technology, the data makes it easy to verify and validate ownership of NFTs and the transfer of tokens between owners. Even though NFTs have been around since 2017, the concept is still very new to most people. With NFT technology, the types of NFTs that can and have been created seem limitless.
NFT vs. Cryptocurrency
NFTs are built on the same technology as cryptocurrencies, but they are only similar in that way. Physical money and cryptocurrency are fungible, meaning they can be traded or exchanged between each other and are always equal in value. NFTs are non-fungible, which means each one has one unique digital signature that makes it one of a kind. NFTs cannot be exchanged between one another as they are all different.
Uses of NFT
NFTs are for people who love to invest and trade in cryptocurrency and appreciate and collect artwork. NFTs provide an opportunity for artists and digital content creators to no longer have to sell their creations through galleries or auction houses. Instead, with NFTs, they can sell their creations directly to consumers allowing them to keep more of their profits. Creators can use blockchain coding to embed code to distribute a certain percentage of royalties every time their art is resold.
NFTs Are Redefining The World Of Visual Art
Beeple sold an NFT for $69 million Through the first-of-its-kind auction at Christie’s, NBA Top Shot generated $136M a month from NFT sales, and Mcdonalds made a McRib NFT. The art world is embracing NFT’s because the blockchains can guarantee authenticity in a manner that even the most prestigious art guarantors can’t. Additionally, NFT auctions can include royalties for artists baked into the tokens, allowing the artist to capture royalties if the works are resold at a greater price in the future.
NFT gaming is truly the killer app for long-tail crypto adoption and a gateway to Defi. (decentralized finance).
NFT Games Are Breaking Major Records
- Mythical Games raises $75M to build an NFT game engine
- NFT Game maker Sky Mavis raises $152 Million
- Ethereum NFT Metaverse Game The Sandbox Raises $93 Million
These headlines are becoming more and more commonplace as NFT adoption begins to spread across every industry in the crypto world. With Axie Infinity (AXS) breaking the $1 billion dollar mark in sales and hundreds of other games beginning to capture the $300b a year gaming market, NFT gaming is truly the killer app for long-tail crypto adoption and a gateway to Defi for most (decentralized finance).
How To Buy An NFT?
The NFT market is highly speculative and volatile. Some digital collectibles appreciate millions in value while most NFTs are absolutely worthless. Our advice? Experiment with NFT with the money you are you don’t mind losing. As of writing today, Ethereum gas fees are insanely high until ETH2.0 arrives. Purchasing a Codex NFT at 0.01ETH might cost you up to 0.02ETH in network transaction fees (gas fees).
Nevertheless, that hasn’t stopped many NFT collectors like us. If you are interested in exploring the crazy and exciting world of NFT. Check out this simple guide to get started: The Best and Easiest Way to Buy an NFT
The Future Of NFTs
While the current NFT world is a volatile marketplace that continues to self-correct, an interesting application of NFT continues to emerge.
Exodus Orbitals Inc., a satellite virtualization solution company has announced its partnership with the Lady Rocket Foundation to put in satellite technology and non-fungible token (NFT) to protect African wildlife against plunder and climate change. More info
Copernic Space and Lunar Outpost are set to launch a public sale for tokenized payload space in a lunar lander headed for the moon in Q4 2022. Corporate and retail buyers will be able to buy, fractionalize and resell payload space on Lunar Outpost’s M1 MAPP rover. More info
While crypto analysts debate wetherNFTs are the future or simply another fad, the amount of money being exchanged for NFT art has artists, financiers and, technologists paying attention. The current NFT movement is driving the broader adoption of crypto wallets and serves as a great learning tool for first-time crypto users. If we look at NFTs as one pillar of the Metaverse, the other part is Defi which is where NFT leads. We will explore more about this topic in another post.
Codex is a collection of 9,168 digital art pieces — the first-of-its-kind NFT that can affect its physical environment in Glitch, an NFT escape room set in a futuristic Silicon fabrication facility. Codex lives on the Ethereum blockchain, which can not be replicated, tempered, or destroyed. Own the future and discover the secrets within. Learn more here: https://www.tryreason.com/NFT