NFTs 101: What are NFTs?
What are NFTs?
NFT stands for Non Fungible Token. This means that this item or token is unique and cannot be replaced. NFTs are digital assets that represent goods such as art, music, and items in video games. NFTs are bought and sold online using cryptocurrencies since NFTs are encoded with the same software as many of these cryptos. This software is referred to as “blockchain technology”.
NFTs are digital files which their ownership and identity can be verified on something called a “blockchain”. Blockchain technology is simply an un-hackable system that records the authenticity of a digital file. This file can never be duplicated or tampered with. In addition, blockchain technology keeps track of where that file is stored, therefore this helps identify who owns which NFTs.
NFT technology applied to digital art
In the past years there has been an increase in popularity of NFTs. Platforms such as Ethereum allow for digital art to be “tokenized” and for its ownership to be safely stored in a blockchain on the internet. Applying this technology to the art market allows for sellers and buyers to interact directly without the need of third parties. This becomes highly beneficial for the artists since they can sell their work without a third party such as an art gallery or an auction house.
Since NFTs are digital goods, many people wonder what the benefits of owning NFT art are if someone can simply screenshot an image or download a video and have access to it. Well, think about it this way…. There are multiple copies of famous panting such as the Mona Lisa. You can find replicas on Ikea, the image of the Mona Lisa printed on T-shirts and even socks. This image can be found everywhere, however that doesn’t mean that if you own an Ikea painting of the Mona Lisa you have ownership of the real painting made by Da Vinci.
The same logic applies to NFTs. People create NFTs of famous memes, pieces of art, music and even tweets. Even if everyone has access to that them, that doesn’t mean that they own that item. Only the person that has the NFT of that image, song or tweet will own it.
Ownership and NFTs
The concept of NFTs and ownership can be difficult to understand since it challenges the way we traditionally view ownership and the internet. When we think of the internet and the digital world, we don’t necessarily think of it as something that can be owned. On the contrary, we believe it to be a free space where everyone has access to it.
However, nowadays with the widespread use of the internet, the creation of digital goods (such as digital art, music, and in-game items) and the adoption of cryptocurrencies it is natural to think about ownership of digital assets just like in the real world. The Digital Era is forcing new generations to pour over the concept of ownership to the digital space. The digital space is becoming more and more intertwined with the real world, and it is becoming hard to blur the lines between them.
In addition, NFTs can solve many current issues in the art world such as forgery and art market cartels. NFT Art markets are opening the door for many artists to be recognized and valued without the approval of a renowned art gallery. NFTs can democratize art and change the way the art world operates. Therefore, I believe in the future of NFT Art and everyone who partakes is shaping it.
NFTs are not limited to art only. NFTs can also be useful to prove ownership in real estate, intellectual property, legal documents, degrees, diplomas and content rights. In the future I can see NFTs being for counterfeit protection, for tickets and passes, memberships for digital access, medical records, voting rights and ultimatly to create digital identities for users.
