Computers have revolutionized the way we operate. Our means of communication have become digital, we watch videos on the Internet, we work online... In short, our daily lives are very different from those of our elders. One thing seemed to have escaped this digitalization phenomenon: the art market. But this is no longer the case with the advent of NFTs which allow collect digital works !
We will try to explain this new phenomenon to you and what it will change in our lives!
What is an NFT?
Short answer: An NFT is a Non-Fungible Token or JNF (non-fungible token). Rest assured, I doubt that the French translation will ever be necessary. So we will stay on NFT!
I grant you, we are not very advanced. So let's push the explanation a little further.
Non consumable
The term non-fungible means that each token is unique and therefore cannot be replaced by another token. For example, a €1 coin is fungible. If you exchange it for another €1 coin, you have exactly the same thing. Conversely, if you try to exchange a painting for another painting, you will get something completely different. This is what explains the non-fungible nature of NFTs.
Uniqueness is key here. So a non-fungible item is something that is unique and authentic. Something that has value for its authenticity.
Token or Token
OK, we explained the non-fungible part… what's this this token story?
A token is a string of 40 characters (numbers, letters, etc.). It contains information about the original artist who created the masterpiece, the owner (there can only be one), and the current price of the item. This information storage is made possible by the blockchain technology which cannot be altered by any means due to its decentralized system.
Non-Fungible Tokens (NFT)
Finally, when you put these two concepts together, you get an NFT. A NFT is an unforgeable token that contains information about the ownership of a unique and authentic object. The NFT is actually a certificate of ownership or authenticity.
NFTs, digital art and collectors
Applied to the world of digital art, an NFT allows for proof of ownership of digital assets. Concretely, NFTs transform the works of art digital and other collectibles into unique, verifiable assets that are easy to trade on the blockchain.
NFTs are usually unique, but sometimes they are offered as limited editions like numbered artworks. Each print then has its own unique identification code.
Until NFTs came along, digital art didn’t have the same value as a Picasso or Van Gogh masterpiece. This is simply because digital can be easily duplicated with a single click. With a digital work, it’s almost impossible to distinguish the copy from the original.
For example, a simple right-click allows me to save a copy of the Nyan Cat meme that sold for over $500 via an NFT. However, I do not own it and cannot claim it as such.
Although they have been around since 2014, NFTs are gaining notoriety as they become an increasingly popular way to buy and sell digital artwork.
NFT allows digital creators to put their work in the domain public without having to worry about proving ownership or authenticity. Digital artists can generate an NFT for their original artwork and auction it to someone else while retaining information about the original creator, current owner, and current value. But the interesting thing about NFT is that every time the digital artwork is sold to someone else, a share of the value will be transferred to the original creator. This makes NFT an interesting solution for digital artists who want to make money from their artwork.
NFT technology allows the recognition of digital artists!
What is the connection between Blockchain and NFTs?
Blockchain technology is the foundation on which NFT technology is built. This ultra-powerful technology in terms of authentication and traceability has enabled the rise of cryptomonnaies.
So, every transaction made by NFT is recorded in a public ledger, which means that the whole system is very transparent. Another aspect of this technology is that it creates a chain, which means that everything is traceable back to the initial creator.
Moreover, regarding the same ecosystem, it is currently only possible to buy NFTs with cryptocurrencies and in particular Ethereum which was a pioneer in the field.
Why buy NFTs?
As we saw a little above, the existence of an NFT on a digital work does not make the work disappear. Everyone can still access copies of the work… so why spend a fortune to become the owner of such a thing?
Just like with physical artworks that are reproduced on the internet or in books, acquiring an NFT allows the buyer to “own” the original artwork. Authentication built into the NFT and validated through a blockchain protocol serves as proof of ownership.
NFTs therefore make it possible to collect monuments of digital culture.
In this respect, NFTs also become an investment in digital art since the title of ownership makes these works transferable. So there is now a market for digital art… And yeah!
Some examples of digital works sold as NFTs
Nyan cat
This cat, one of the most famous on the Internet, was sold in February 2021 for the modest sum of 300 ETH (ethereums), or around $500 at the time of the transaction.
Jack Dorsey's First Tweet
Jack Dorsey, co-founder and former CEO of Twitter, sold his first tweet for $2.9 million. Gulp…
Disaster Girl
Sold for $500, Disaster Girl is a meme that has made the rounds on the Internet several times since it first appeared on the web in 000.
The first SMS in history
In December 2021, the first SMS in history was auctioned as an NFT. However, the amount obtained seems almost disappointing compared to the rest… It was sold for only €107.
Bored ape
Bored Ape is a collection of 10 profile pictures intended to be sold as NFTs. These unique images all depict monkeys in disguise and are intended to be used as avatars on social media.
While the most ordinary ones sell for around $500, the most original ones can fetch several million dollars.
Celebrities have already joined the monkey-owning club, including Omar Sy, Jimmy Fallon and Shaquille O'Neal.
NFT and after?
If the early craze for NFT seems to have created a monster with transactions for unbelievable amounts, it seems rational to think that this bubble is tending to deflate.
After the initial madness, it is likely that the increase in transactions and the growth in the supply of NFTs will help stabilize the market.
Beyond these price drifts, NFT technology is a real breakthrough for digital art. Its ability to identify the owners of a work and determine its authenticity will allow a new market to emerge. This is why NFTs are a revolution!
What do you think about NFTs? Share your thoughts in the comments below.
