Cryptocurrencies: NFTs — that Make the Market Go High!
Do you know what NFTs can do today? Do you know what these NFTs are? To understand the true potential of non-fungible tokens or NFT, you need to jump into this market. We need to understand how the digital market is evolving in 2022 and how the concept of ownership and investment is evolving. A digital asset, which thus does not physically exist, can have a very high market value.
There are many digital artworks or NFTs that are much more expensive. Artist Pak’s The Merge on Nifty Gateway Platform, for example, was auctioned off for $91,800. Digital buying and selling is very complex and follows different processes from what we are used to knowing.
The merger was purchased by about 30,000 people: this meant that everyone bought a “piece” of work and received a “certificate of ownership”. But NFT is not only digital work … we find audio files, GIFs, videos, memes but also objects inside video games.
Starting with the non-fungible token name, let’s start analyzing what “non-fungible” means. Making it simply means an NFT is unique and cannot be replaced with anything else. For example, a bitcoin is fungible because it can be exchanged with other bitcoins to get exactly the same results.
An NFT is not fungible because if you exchange it with others you will get something completely different. NFT mainly attracts collectors or investors who are only concerned with buying for resale.
The second part is “token” and it means it can be exchanged. Such as cryptocurrency, other NFT exchanges, etc. By definition of a token:
“A set of digital information within a blockchain that entitles a particular subject. Tokenization is the conversion of an asset into a digital token registered in a blockchain.”
Most NFTs are part of the Ethereum blockchain. Ethereum is a cryptocurrency whose blockchain supports NFT. Blockchain stores extra information that makes NFT work differently from cryptocurrencies, in this case, ETH.
There are also different blockchains that can implement their own version of NFT. Even if the functionality of the NFT is not only reliable for the blockchain! There are other aspects that impact it, such as the digital signature that appears through the hashing function.
“The term hash is used to identify a very important cryptographic function in the computer world. These functions are used to verify data authentication, securely store passwords, and sign electronic documents. “
At first, it is hard to imagine that a digital work could have authenticity. Because so far we are accustomed to considering virtual as a copy of a copy. The concept of ownership and authenticity was born precisely with blockchain technology.
The value of an NFT, and consequently its value, increases depending on a variety of factors, including uniqueness. This feature is extremely important. For blockchain technology, this feature is based on the relationship of trust between the seller and the buyer.
Other features that determine its value are obviously aesthetics, NFT’s previous sales in a given context (video games, artists, etc.), and the popularity that manifests itself among buyers and sellers. Next, whether they are collectors or actual investors, the dynamics are almost the same.
Some experts reveal two great secrets that lead to investing in the NFT world. We recommend reading this article to deepen their perspective. What’s certain is that prices are determined by buyers ‘interests and both buyers and their investments revolve around episodic sales vs. collection or gamified experiences.
In fact, NFT can only be bought with cryptocurrency, and this market is even more special if we talk about big statistics. And it is defeated by gamers and big investors who can be artists, actors, or great entrepreneurs.
When we talk about buying an NFT, we are not talking about buying NFT per SEO. But the fact that the buyer can show that he has full rights to the work, including a digital certificate of ownership that can be created thanks to the hashing process.
The person who creates the hash and so the digital certificate guarantees that there is an asset to the digital work. And so it can be sold or exchanged, for example with cryptocurrencies. The certificate of ownership is registered in the blockchain which marks the relationship between the buyer and the work.
In the fintech ranking, you can find the top 10 of the most expensive NFTs that have been sold so far. The last in the ranking in order of price is a Cryptopunk that has been sold for more than 1.5 million dollars. This already gives us a hint of what range of figures we are considering.
First, is the work of Pak, a well-known digital artist who was able to collect about 92 92 million in cryptocurrency from one work.
As a second we find again a digital work of art, this time by the artist Beeple which was sold for the sum of more than 69 million dollars. Third in the ranking are the famous Cryptopunks, known to be the first NFTs of the Ethereum blockchain.
Of course, the first three sectors that rotate around the market own art. And by that we mean the digital works of more or less famous artists who can make a living from their art nowadays if not before.
When a buyer actually buys an NFT of the digital work of the industry, he will not have the right to own the “digital file” of his work. But, he will be entitled to a certificate of ownership, usually without acquiring the commercial right to work
In the NFT industry, billions of euros are collected between collectors and net investors. One of the revolutions in the NFT industry is their identity and the impossibility (theoretically) of creating a mesh, which often occurs with physical exertion.
Also in this video game sector, NFTs are doing great work, we are talking about 9 Zero figures. The purchase and sale of NFTs in video games is the purchase of non-fungible tokens made available to players. And these can be really different from each other.
For example, in the Metaverse of Sandbox. There is an original gallery of digital works of art that can be purchased. While at Axie Infinity, video game players can present animals for the battle to reproduce and resell, somewhat older Pokemon style.
A portion of the video game market is NFT based. It surpassed 2 percent of the total revenue of several companies investing in cryptocurrencies last year and so in blockchain and NFT.
On the premises built so far, we have reached the third-largest block of NFT that promotes the market. Since digital can verify the authenticity and ownership of virtually anything, videos, photos, concerts, shows, or live events, GIFs, memes and more can be included in NFT.
Jack Dorsey sold ownership of one of his tweets as NFT, becoming the first tweet worth 2.5 million. An animated GIF of a flying cat has sold for over $ 500,000, and a collection of digital images at auction has brought in $70 million!
Another million dollars for a photo in the .jpg file, including a meme about the vagina of supermodel Cara Delevingne and a video and a painting by artist Beepel, which sold for $69.3 million. These are all unique and certified pieces.
Originally published at https://blockchain101.famecoin.ai.