In early March, a technology company bought a piece of art worth $ 95,000. Then the authorities set it on fire. At the end of the show, which was shared live online, the group presented a copy of the art, this time in digital form. The creation, by the invisible British artist Banksy, was called “Morons (White).”
In terms of digital format, it has more hype than painting and combined temperature. It is a growing type of technology called incorruptible token, or NFT. Think of NFT as a unique proof of ownership of something you can’t handle with your own hand – a piece of digital art, a digital coupon, perhaps a video clip. Like digital art itself, you can’t hold NFT in your hand, either – a piece of single-coded code, stored and protected from shared social exchanges.
However, some NFTs collect millions of dollars. Investors, futures and financial journalists are shy, and companies large and small present the NFTs for profit, information, or both.
In line with the firmness created by Injective Protocol and its Banksy, there is the NBA, which recently launched Top Shot, an online marketplace that sells video clips of the game’s highlights. Those clips – think of the classic Bron James dunk – command of various prices depending on availability, and they all come in NFT format. Consumers collect, and sometimes resell, thousands of dollars, in the form of digital trading cards.
The pizza shop in Los Angeles has released NFT, owned by one lucky owner, which translates to free pie for life. And an artist named Krista Kim recently sold a virtual house, called Mars House and built in the NFT format, for about $ 500,000.
The ballyhoo NFT’s surroundings may seem similar to another highly hyped event known as bitcoin. People who are interested in one thing tend to be interested in another, and that’s because technology is related. If you are thinking of buying NFTs, or if you want to sound smart when you talk about them, here is what you need to know.
Wait, what else?
Now what is NFT? Understanding them, it helps to know the basics of digital finance.
In a simple way, digital money is a form of money. With a variety that includes bitcoin, ethereum and dogecoin, it is a cryptocurrency; it can be stored in an online account, on a USB drive, or in a digital wallet application on your computer or phone.
Digital currency values go up and down in online exchanges like Coinbase. Such a change in the wild price is bad news for people looking for a low-risk investment option.
But there is good news about digital finance too: It’s almost impossible to cheat. Bitcoin, for example, relies on a shared public platform called blockchain, which uses sophisticated cryptography to verify the authenticity of the currency. Blockchain makes hacking very difficult because everything that is done is recorded on a large, low-level ledger network; the invaders will have to control its large piece to do any damage.
The hype of digital currency has skyrocketed over the past several years, apart from its value at any given time. Tesla recently announced that it would accept bitcoin as a car payment.
Digital art with a twist
By March 2021, the annual value of bitcoin was rising. One bitcoin can fetch north of $ 50,000. It was clear that cryptocurrency technology could be useful in the right hands.
At present, almost all of us have some knowledge of material possessions. Think video games, digital art, logos, photos, photos, music and video clips. Data, including spreadsheets, is classified as such assets, and – anything in digital form that comes with the legal right to use that asset. Even coupons receive digital treatment these days.
Of course, it would be very easy to rob such digital objects. Taking a screenshot with a copyrighted image is as easy as pressing two or three keyboard keys at the same time. Copyrighted music is frequently used for illegal music videos. Artists can, and do, claim harm if someone uses a copyrighted work without permission, but the process can be time consuming and costly.
Enter NFT, or NFT token. The basic concept of indestructible token: Marry the world of digital goods with digital security for money. It is a digital asset and a certificate of authenticity and legal rights all linked together. Purchasing NFT means purchasing anti-ignorance, public perception of certain digital assets.
Can anyone hardly copy that digital asset? Certainly. But they can’t easily rob it of its coming, and that, in theory, is what gives NFT its value.
This is not money, but it can be expensive
Like bitcoin, intangible tokens rely on the widespread power of blockchain technology to ensure their authenticity. But unlike bitcoin, they do not change. You can’t exchange any old NFTs for a car or pizza, because each NFT is attached to a specific digital asset – a coupon, a piece of art, a set of trading cards.
All bitcoin has the same value at the same time. Not so with NFTs. In short, think of NFT as a unique, digital version of a certificate of authenticity, publicly stamped with blockchain.
Some investors bet heavily on NFT markets and NFT art, hoping that their value will increase. Others buy NFTs by seeking information, bragging rights, or just joining a new community. Some supporters of the NBA Top Shot agree that most of the outstanding videos they sell can be viewed at any time, by anyone, on YouTube. But they like to belong to the Top Shot online community, or they like the opportunity for investment that can go up in price.
What is NFT? Blockchain fashion technology is defined
By Leslie Gornstein
March 26, 2021 / 10:49 AM / CBS News
In early March, a technology company bought a piece of art worth $ 95,000. Then the authorities set it on fire. At the end of the show, live live o