Crypto art: what is an NFT (non-fungible token)?
July 23, 2021
Blockchain and non-fungible token
Have you ever seen or heard the acronym NFT? This means “non-fungible token”. And if that doesn’t tell you more, here’s some information on it that should enlighten you.
What is NFT (Non-Fungible Token)?
To understand the definition of “NFT” it is better to speak a little English, because “non-fungible token” is actually a feature of the “blockchain” … In other words, a blockchain is a blockchain. or even “technology for storage and transmission [qui] offers high standards of transparency and safety as it operates without a central regulatory body. ” Blockchain is used in particular in the banking sector and is “designed to support transactions involving cryptocurrencies / cryptoassets,” even if its use is not limited to the latter. A token or token is a “digital asset issued by the blockchain”. It can be fungible (like bitcoins), that is, it can be personalized. It can also be non-fungible. In this case, the token cannot be individualized. Thus, each digital asset has its own characteristics and cannot be exchanged for another asset.
If about NFT and talked about recently, then they did not just see the light. Their first appearance dates back to 2015, when the Etheria project offered to buy a plot of the virtual world. The characteristics of these graphs were stored on the Ethereum blockchain. Thus, the latter was used for: registration of property rights to unreal (virtual) objects; transfer of property between people. In 2017, the projects Cryptopunks and CryptoKitties (studio Dapper Labs) were born. With CryptoKitties, you can collect virtual kitties. A kitten corresponds to an NFT, namely a token with its own characteristics. The success is such that it is necessary to develop a new blockchain dedicated to the project. The birth of a new token standard – ERC-721.
NFTs are growing, and for good reason they can make a lot of money. For example, in the art world, we can sell digital works. The owner has an NFT attesting that he is the official owner of the work in question. Take the example of Mike Winkelmann, who sold his work for almost $ 70 million in cryptocurrency. Since then, specialized platforms have emerged: virtual work costs NFT. Other industries besides the arts have also opted to bet on NFT. If a dematerialized version of video games has been around for a while, then NFTs allow blockchain use and replace the publisher.
In the field of sports, NFTs are also starting to impose themselves, the proof of this is the NBA or the FFF (French Football Federation). The latter signed a partnership agreement with Sorare. Attention, although NFT is virtual, it can be stolen and resold … In addition, the environmental impact of NFT is regularly raised as this technology requires a lot of power.
Bourseorama / MCP, via mediacongo.net