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What Is NFT Digital Art And Other Business Models

What Is NFT Digital Art And Other Business Models

NFT or non-fungible tokens has been one of the most popular terms in the year 2021, along with others like “Metaverse” or “crypto”, according to the Collins Dictionary. It is possible that if you are interested in digital trends, you have searched for what NFT is. Currently, you will find news like that the NBA has raised 62 million dollars with the sale of NFT or that the first Twitter tweet has been sold for 2.9 million dollars. This phenomenon is revolutionizing the value of digital content.

What is NFT (Non-Fungible Token)?

NFT stands for Non-Fungible Token or non-fungible token. To know what NFT is, we must consider what passes are. A permit is a cryptographically based unit of value issued by a private entity on a ‘blockchain’. For example, cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH) are tokens. We will tell you more in detail, and we will also remember what expendable and non-expendable goods are.

Expendable goods can be exchanged, having a value based on their characteristics, and non-expendable goods cannot be substituted. For example, a painting or a sculpture would be a non-expendable good since another image cannot replace it because one work of art is not equivalent to another.

These digital assets can be any digital content and allow anyone to own a “digital good” for sale, be it an image, graphic, text, video, song, or even a tweet. As we mentioned at the beginning, the founder of Twitter, Jack Dorsey, celebrated the 15th anniversary of the social network with the auction of his first tweet from 2006.

And where do you keep this non-fungible token that you have bought? Just like cryptocurrencies on a blockchain. Ethereum is currently the leading blockchain service for issuing NFTs, so most transactions are done with ether, the Ethereum cryptocurrency. This means that to buy NFTs, you must first accept the cryptocurrency.

It is important not to confuse the functionality of NFTs with that of cryptocurrencies since they are opposite goods even though they use identical blockchains. A cryptocurrency is a fungible good and an NFT a non-fungible one, as the value of cryptocurrencies rises or falls with supply and demand and non-fungible tokens do not.

The New Revolution In Digital Art.

Thanks to NFTs, the authenticity of digital art is protected, and the copyright of digital works. In this way, it is not so easy to duplicate digital files since, thanks to blockchain technology, it is possible to verify the originality and ownership of the work.

The most popular NFT transactions are in the form of “crypto art”, a new way of collecting digital works of art. The first work sold that started the NFT phenomenon was the JPG file “The First 5,000 Days’ ‘, created by the artist Beeple. It was sold for 69.3 million dollars on March 11, 2021, so on this date, we celebrate the first anniversary of NFTs.

Collecting has been the first market added to the NFT, and it is that buying a work of art or collectible object entails a privilege, which is to own a piece that has been declared unique. Nobody else can have it, and now, for the first time, blockchain technology allows this.

NFT And Video Games.

In defining what an NFT is, it isn’t easy to cover all the types of digital assets. The number of non-fungible tokens out there is incalculable as it is continually increasing. We have mentioned NFTs for digital art and collecting, but an NFT can also be a unique contract between an employee and the company, known as “smart contracts”.

Another relationship with NFTs in the metaverse is now being talked about so much in the media since Mark Zuckerberg’s company name changed to “Meta.” NFTs and the metaverse are interconnected, especially in crypto games. NFT or “play-to-earn” video games are games in which some of their parts are NFT. Non-fungible game tokens can be a character, weapons, housing, vehicles, etc.

The exciting thing is that the purchase of NFTs within the game is made through the game’s cryptocurrency, so the more popular the video game is, the more users will play it and buy NFTs, so the value of the currency will rise. In this way, you can also earn money with NFT games. By overcoming specific missions, defeating enemies or fulfilling requirements, you can make the game’s cryptocurrencies, which you can exchange for real money.

Also Read: Facebook And Instagram About To Create A Marketplace For NFTs

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