The most recent tech trend has been blowing up across the internet but has left many wondering ‘What really are NFTs?’
With celebrities left right and centre diving into the mysterious waters that are “NFTs“, we wanted to help to demystify the phenomenon.
To put it simply, NFT stands for Non-fungible token, referring to something which is unique and can’t be replaced. An example of something fungible would be a deck of playing cards – this is something which has been reproduced millions of times, and is able to be reproduced again. Contrastingly, something that is non-fungible is a one-of-a-kind trading card that can’t be reproduced.
NFTs are part of the Ethereum blockchain, which is a cryptocurrency much like Bitcoin and Dogecoin: both popular cryptocurrencies.
NFTs can be anything digital, including music and games. However, the majority of the attention surrounding NFTs has been focused on users selling digital art.
When you buy an NFT, you are given the original art file from the creator, which only you will own. Others may copy it, but the important part is that you own the original piece – much like physical art. The Mona Lisa for example, has been reproduced in a number of forms, millions of times, but the original art piece belongs to one entity. A large interest within the NFT community is placed on amassing collections of fine art, much like in the traditional art world.
NFTs have actually been around for longer than you might have thought, starting with CryptoKitties: a digital trading game on Ethereum, which allowed people to buy and sell virtual NFT cats.
NFTs really gained traction after the first ever NFT artwork (a collage of images by digital artist Beeple) sold for $69.3 million.[Image Creds: Mic]
Here are some of our favourite recent NFT related stories:
Quentin Tarantino was shown in a clip last year – having NFTs explained to him – responding, like many others, with confusion. Despite this, the film maker seemed to come around to the idea.
Tarantino launched his project dubbed ‘Tarantino NFTs’ on January 10th. This included one of a kind digital assets from the original handwritten screenplay of Pulp fiction.
Following this announcement Mirimax, the film studio that produced Pulp fiction announced that they hold intellectual property rights, and have filed a lawsuit against Tarantino.
Internationally renowned K-pop band BTS have also decided to enter the NFT game. Meanwhile, entertainment company Hybe announced a partnership with South Korean crypto exchange Danamu, claiming the carbon footprint associated with NFTs was “almost negligible.”
Fans have since critiqued BTS, who have traditionally been very passionate about lowering their carbon footprint. Despite this controversy, the project will still be going ahead and the NFTs available for sale soon.[Image Creds: Mashable]
Lastly, rapper Eminem is the latest celebrity to join BAYC, after he purchased an NFT ape for $460k. This collection (Bored Ape Yacht Club) has become one of the most famous collections of NFTs recently, and celebs are keen to get involved. The purchase was made on OpenSea’s NFT marketplace.[Image Creds: Reuters]
NFTs are still something relatively new and, despite their instant fame, it is still unclear whether this type of art will rival traditional physical art or become a passing fad.
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