Have you ever thought about storing unique art in the form of digital assets, NFT’s is the word you are looking for!
From ancient times humans have always engaged themselves in gaining social currency be it from animal skins to artistic objects for their aesthetic, economic, and emotional value. Ancient riches have acquired the works of artists such as Picasso, Van Gogh, Caravaggio, or Banksy at astronomical prices. Their market value is very high because they are unique original pieces in the world. Exclusivity has prompted a sale that has spread to other artistic branches such as music, cinema, or video games. To digitalize these exclusives there is a creation of NFT which stores a unique art in blockchain technology.
In the digital world, a token is a unit of reference. While the shares of a company all have the same value, a non-fungible token associates a certain value with a unique, rare, and indivisible digital object. In NFT’s rather than assigning the value to some physical artwork at some auction, it assigns it to an intangible digital art.
Before Bitcoin, the cost of replicating something in the digital world was close to zero. The emergence of blockchain technology has made storing the value of digital art in a unique way possible.
Non-fungible tokens (NFTs), which we also call crypto-collectibles, comes into the frame here, which expands this idea. Each non-fungible token is unique and limited in quantity which makes it more collectible among the people to gain social currency among peers. The major difference lies in the supply and uniqueness of NFT’s. Celebrities such as Eminem, Amitabh Bachchan, and more have all jumped in on the act.
NFTs are essentially virtual assets that have no tangible form but can be sold like any other piece of property.
They are a form of unique cryptographic tokens on a blockchain like Ethereum or Binance Smart Chain. In some sense, we can consider them as crypto-collectibles.
How NFT’s are changing digital artwork?
There are a number of debates out there criticizing the nft’s and digital art, which mostly consists of the people who fail to understand the value of digital art. The major argument which comes to light is that there is no point in investing money in some digital art that people can copy or download for free.
People have invested and are investing in a unique artwork even though an exact replica can be made. Why? For the ownership of the original. Likewise, anyone can copy a digital artwork, but only one person can own the original.
The question is one of value: what makes art valuable, and do the same rules apply to the digital as to the physical?
NFTs are best understood as computer files combined with proof of ownership and authenticity, like a deed. Like cryptocurrencies such as Bitcoin, they exist on a blockchain—a tamper-resistant digital public ledger. But like dollars, cryptocurrencies are “fungible,” meaning one bitcoin is always worth the same as any other bitcoin.
To help artists create financial value for their work, NFTs add the crucial ingredient of scarcity. For some collectors, if they know the original version of something exists, they’re more likely to crave the “authentic” piece. Scarcity explains why baseball-card collectors are willing to pay millions for cardboard with a picture of Honus Wagner. But cards, sneakers, and that all exist in the physical space, so it’s easier to understand why they’re worth something. It can be harder to understand why digital art, or any other digital file, has value.
But now as we are living in the virtual world with the possibility of gaining a lot of social currency from all around the globe. It makes sense to spend money on virtual stuff.
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