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If You Haven’t Heard of NFTs You’re Living Under a Rock!
You might have turned your head from the internet for a bit and have returned to find a brand-new obsession in the metaverse that’s gotten the internet folk in a frenzy. NFTs and crypto art have been on almost everyone’s minds as of late. So if you haven’t heard of them, buckle up and prepare to be stunned, because this new trend is one you can’t miss!
In a Nutshell: Non-Fungible Tokens
Non-fungible tokens (NFTs) are cryptographic hashes that exist on a blockchain. And if you’ve never heard of a blockchain before, it’s a public ledger of transactions that stores data related to all the transactions that occur on its network. It’s the same technology that powers cryptocurrency, so there are correlations between the three. The most important thing you need to know about blockchains is that they’re highly secure, and all data is traceable from inception.
Some blockchains can allow anyone to mint new tokens, such as cryptocurrency and NFTs––but how are these two different?
Cryptocurrencies are fungible tokens, which mean that there can be more than one of the same kind in existence. For instance, you can have 1 Bitcoin, and your friend can also have 1 Bitcoin. If you exchange your Bitcoins with each other, you’ll end up with the same thing.
In contrast, there cannot be two of the same non-fungible tokens in existence because each of them has a unique hash code––a property that makes them different from one another. This uniqueness is perfect for claiming ownership in the virtual space because there would be no question about who owns what.
But What’s The Value of NFTs?
Think of NFTs as tags that correspond to a piece of digital content, whether it be a photo, gif, a 10-second clip, or even a tweet. They allow anyone to claim ownership over their work, essentially turning it into a one-of-a-kind, limited collectible. As there has never been a way to “officially” own things in the metaverse, the internet is extremely excited about NFTs, quickly turning the trend into a collectible mania and a quest for the most coveted artworks and memes.
The most explosive phenomenon to come out of this newfound love for virtual asset ownership is Beeple’s $69 million digital collage titled ‘The First 500 Days,’ which sold at an auction hosted by––you would never have guessed––Christie’s. If there’s anything you need to know about Christie’s, it’s that they’re one of the most prominent auction houses that have only dealt with fine arts and antiques in their lifetime (until now, that is). For them to team up with Beeple for this massive, history-making event signifies that the fine arts world is in on this, too. And that’s mind-blowing!
The Prequel to a Virtual World
The meteoric rise of NFTs is bringing in conversations about the virtual economy. While cryptocurrency has always advocated for digital peer-to-peer technology, the end goal was to simply create a new financial system where goods and services could be traded with digital currency. NFTs, bring a unique take to the table by offering actual goods that can be sold and purchased––that only exist in the virtual world!
The concept of spending “money” in the virtual space isn’t new. Video games have always adopted this monetization model, where players could use real-life money to pay for in-game items. Even if there was no sense of permanence, some openly spend thousands on a single title, a behavior no different from the NFT fad sweeping over the internet.
At the moment, NFTs take the form of one-of-a-kind artwork and other digital content and are being treated as collectible trading cards. But there’s a huge opportunity for the scope of NFTs to expand, especially as more new blockchains hope to innovate the industry. It won’t be long before brands also start thinking of ways to sell digital products to enhance virtual living.
Big names like Funko have already announced their involvement in NFTs. And there’s no way that the fashion industry will overlook the profit they can make out of digital goods. While some are afraid that the NFT trend is merely a bubble that’s about to burst, its existence is enough fuel for big ideas to invade the metaverse.
How to Get Started With NFTs
First and foremost, it’s important to understand that while NFTs have provided massive leverage to struggling artists all over the globe, finding success amid this frenzy involves a stroke of luck and dedication. Beeple’s $69 million jackpot wasn’t a result of being an overnight sensation. He created renders every day for 13 years and amassed a following for this unique style.
If you intend to join the wave as an artist, it’s important to build a social media following first before entering the marketplace. That’s the only hard part––the rest of the process isn’t as difficult as it sounds! Your marketplace of choice will handle the entire NFT minting process. They’ll do the work for you.
When it comes to marketplaces, there are platforms like OpenSea, Rarible, SuperRare, and DIGITALAX, among others––all of which specialize in a different type of NFT. Regardless of whether you’re buying or selling, choosing the right marketplace will make it easier to find the best curation. On that note, all transactions are done with cryptocurrency, usually Ether (ETH), because most NFTs are created on the Ethereum blockchain. It helps to know about hidden fees to help the transaction process go as smoothly as possible.
That’s what you need to know about NFTs, but it helps to learn more about these tokens before diving deep into the industry, so you know what you’re getting into. While NFTs are speculative assets at best, there’s an opportunity for them to grow in the near future, especially as they’re essential in building the virtual economy. Investors and early adopters are holding onto the hype and keeping it going––are you going to do the same?
References
https://www.theverge.com/2021/3/11/22325054/beeple-christies-nft-sale-cost-everydays-69-million
https://medium.com/evg-virtual/why-do-people-spend-billions-on-virtual-clothes-504ec1601521
https://www.ledgerinsights.com/creator-of-microsoft-nft-games-enjin-new-blockchain/
https://www.coindesk.com/these-black-artists-say-nfts-help-them-monetize-their-work
https://digitalax.xyz/homepage
https://www.businessinsider.com/nft-investing-crypto-art-what-is-a-gas-fee-explained-2021-3
https://www.lofficielusa.com/fashion/nfts-impact-fashion-industry-crypto-currency
Kenneth is a proud native of sydney, born and raised there. However, he pursued his education abroad and studied in Australia. Kenneth has worked as a journalist for almost a decade, making valuable contributions to prominent publications such as Yahoo News and The Verge. Currently, he serves as a journalist for The Hear Up, where he focuses on covering climate and science news. You can reach Kenneth at bloggerjohnsmith12@gmail.com.