NFT stands for non-fungible token. ‘Non-fungible’ means that the item is unique and can’t be replaced for the exact same item. Many people view NFTs as digital assets that represent real life items for example music, pictures, videos or in game items. Many NFTs are bought with cryptocurrency on online marketplaces. NFTs are created with very similar code to cryptocurrencies. Many people started hearing about NFTs in 2020 but they have been around since 2014. NFTs are unique because they give the world the opportunity to create something that can’t be copied. All NFTs must have an owner, and this is always public record and easy for anyone to verify. Ownership of the work, copyright and reproduction rights will always remain with the rightful owner of the art due to smart contract technology. My absolute favorite NFT collection can be found here.
Although NFTs and cryptocurrencies are very similar there is one main difference. NFTs each have a unique digital signature that makes it impossible for NFTs to be equal. The United States Men’s Soccer team launched the Only Forward Art Series campaign that features NFTs from all the upcoming World Cup Qualifying games. Although the national team is giving out NFTs for all the qualifying games this doesn’t mean that all NFTs will be equal. Every NFT created is unique. Below is an NFT I collected when the USMNT played Canada in Nashville 09/05/21.
There are several different marketplaces available that allow people to buy NFTs. There are also a lot of cryptocurrencies that are creating their own NFT marketplaces. For example, $PIG will be releasing its own NFT Farm in the near future. A great read to understand the PIG cryptocurrency can be found here. In the future there will be a lot of different places people can buy, hold, trade, and sell NFTs. Since the industry is still very young it is possible that people could buy NFTs that will never increase in value. ProtonMint, Opensea and Niftygateway are three marketplaces that sell NFTs that will be in demand for the foreseeable future. In the old days people use to collect Ferraris and Rolexes. Soon people will be collecting NFTs, showing off their printed jpegs throughout their homes or offices. Click here for an example of what printed jpegs look like in picture frames.
The NFT world is just beginning, and it will be very exciting to see how this new craze impacts our societal norms. In some markets people can use digital artwork as collateral for a cryptocurrency loan. Artists or creators can always claim royalties on their property forever. Every collector or investor must do their own research, but the technology behind NFTs is going to change our society forever. Think about the last time you saw someone read a paper newspaper.
References
Clark, Mitchell. “NFTs, Explained.” The Verge, The Verge, 3 Mar. 2021, www.theverge.com/22310188/nft-explainer-what-is-blockchain-crypto-art-faq.
Conti, Robyn. “What You Need to Know about Non-Fungible Tokens (Nfts).” Forbes, Forbes Magazine, 23 June 2021, www.forbes.com/advisor/investing/nft-non-fungible-token/.
OpenSea. “City Croquis – Collection.” OpenSea, opensea.io/collection/city-croquis.
“U.S. Soccer Launches Only Forward Art Series for Upcoming U.S. Men’s National Team’s FIFA World Cup Qualifiers.” US Soccer. Sponsored by Volkswagen, 27 Aug. 2021, www.ussoccer.com/stories/2021/08/us-soccer-launches-only-forward-art-series-for-upcoming-usmnt-fifa-world-cup-qualifiers.
