We tell you why you should buy NFT tokens and how to make money on them.
long documents that we never finish reading until we click “I accept.”
According to Instagram’s terms and conditions cyprus mobile phone numbers database at the time of publication of a post, the right to dispose of the content belongs to Meta Inc. Meta Inc., in turn, as the owner of the copyright, can delete, sell or transfer it to third parties at any time, even without informing users.
In this way, even though you own hundreds of intangible objects on the internet, you actually own nothing. NFT tokens solve this very problem by giving an individual ownership of digital assets.
According to Entrepreneur, the NFT market has grown by 18,000% in a year, and according to Dune Analytics, users around the world transact over $150 million in non-fungible tokens in a single month.
We talk about what NFT is and why everyone is crazy about them in our article.
What is NFT?
NFT is one of the newest technologies that comes from the blockchain world. Let’s go through the key terminology:
- Blockchain (literally – English: chain of blocks) is a database that records all transactions of buying and selling currency, bitcoins or tokens between users. Each transaction is recorded in the database – but unlike conventional databases, you can not delete or edit data from the blockchain – only create new ones. Thanks becoming so popular to this, you can precisely trace the entire chain of transfer of a specific asset from hand to hand.
- A token is any digital asset – an image, a song, a text, a digital copy of an item from the offline world. A token is not a cryptocurrency or money in the traditional sense – its properties are more like those of a unique commodity.
- NFT (non-fungible token) is a special type of token / asset, a record in the blockchain, with which you can digitize a product or object – a picture, a song or even a meme. It is a kind of digital certificate that confirms the unique and exclusive right of ownership to a digital asset.
The difference between Bitcoin and a token is best seen in the following example: while all Bitcoins are practically identical and have the same value, NFT tokens are unique and cannot be replaced by
equivalents because they have their own specific value.
If you borrow 10 zlotys from a friend and give him back the same amount but in a different banknote – such assets are interchangeable. And if children’s day – remember 5 campaigns that are true classics! on the other hand, you take a ball from a friend signed by his favorite footballer and give back a similar ball with a different signature, the value of these assets will be different – and the friend will probably not be happy.
Financier Donna Redel calls the rise of NFTs on the blockchain a new environment and a turning point for the creative industry, comparing the transformation to the transition from analog cameras to digital. Regardless of how it ends, it will be a milestone in art history, the professor notes.
One of the advantages of tokenization in NFTs is that such digital objects cannot be stolen, counterfeited, or deleted. For example, in the case of video games, players buy the ability to use a weapon, but the creators or copyright holders can take it away at any time without explanation or compensation. Example: Counter-Strike and Valve Software’s weapons.
NFT can also be used as a way to confirm identity, authenticity of documents or objects. A special Bridge protocol has also been creat. Thanks to becoming so popular which the user has secure access not only to entertainment, but also to the identification service, receiving and sending personal data and documents.
The Most Famous becoming so popular NFT Transactions
The first experiments with non-fungible tokens appeared in the 2010s guinea lists but the first real success was a performance with a Banksy painting in March 2021. The artist transformed his work Morons (White) into an NFT and sold it at auction for $380,000. Before the auction began. The real painting was destroyed. And the buyer was left with only its digital token – the only version of this work in the world.
Another high-profile example was the sale of the Nyan Cat gif. The gif creator specifically refined the original meme, added details, and styled it as pixel art. The file was sold for over $500,000. In this way, the creator of the image, artist Chris Torres, celebrated the 10th anniversary of the meme. Interestingly, according to the terms of the agreement. Torres did not transfer the intellectual property rights. So the recipient cannot prohibit further distribution of Nyan Cat on the web. The ownership of a specific meme simply passes to the buyer – without financial gain and with the obligation to use it for non-commercial purposes.
Nyan Cat Meme
Twitter founder Jack Dorsey created and sold an NFT of his first tweet. Which was also the first tweet in the history of the social network. The digital copy of the message “Just setting up my Twitter.” Which he posted on March 21, 2006, was paid $2.9 million by Sina Estvi. CEO of Malaysian startup Bridge Oracle. Dorsey donated the money to the Coronavirus Foundation in Africa.