What are NFT’s?

 

The world is still trying to comprehend cryptos, and now there is a new abbreviation keeping big banks on their toes. What are NFT’s, and why is millionaire entrepreneur Gary Vee saying that this is the world’s future? 

 

NFT stands for Non-Fungible Token, a unique blockchain technology that cannot be replicated. It is an innovative digital contract on the blockchain that can be assigned to many digital formats. These include art, photography, videos and even memes. The contract stores extra information that differentiates it from currencies. Just like a painting or a vintage action figure, but instead of buying a physical item, you’re paying for a file and proof that you own the original copy. 

 

So how do they work? The unique identity and ownership of an NFT are verifiable via the blockchain ledger. They were first launched on the Ethereum blockchain, and many other coins have joined the party since. The NFT that identifies its ownership can be bought and sold. Like physical art, the price is primarily set by market demand. 

 

For example, if you walked into a gift shop of an art gallery, you’d find several replicated prints of famous masterpieces, but it is not the original. Well, NFTs act the same way. There may be many versions of an NFT, but they wouldn’t hold the same value as the original. Blockchain technology does not allow for fraudulent activities and is very transparent. 

 

Different industries have taken many steps into the NFT world. The International Cricket Council has released NFT’s of the most iconic moments from other international world cups. Players such as Dale Steyn is also selling his most famous moments as a player and is allowing fans to own a piece of these memories. Twitter co-founder and Ex-CEO Jack Dorsey sold the first-ever tweet (sent by him to announce he was setting up his account) for a staggering $2,915,835.47. That’s unfathomable! 

 

With that being said, the creation of blockchain assets uses an exorbitant amount of computing power and a tremendous amount of energy. Some are worried about the genuine impact the craze could have on the environment. Cryptoart.wtf, a site set up to calculate the carbon footprint of NFTs, estimated that a piece of NFT art named 

 

‘Coronavirus’ consumed an incredible 192 kWh in its creation. That’s equivalent to one European Union resident’s total energy consumption for two weeks. 

 

If you are thinking of purchasing an NFT, it may be cheaper than creating one or ‘minting’ it as the fees (gas fees) are incredibly high, and there is no guarantee that someone will purchase your NFT. If you choose to mint an NFT, there are many features, such as adding a commission each time the NFT is bought. 

 

NFTs are the future, in my opinion, and just as QR codes and replaced event tickets and cryptos will most likely replace currencies. What are your thoughts on NFTs and Cryptos? 

 

Click here to see how Messi’s PSG contract incorporated Cryptos.

 

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