NFT – what is it anyway?
In order to understand what the meaning of NFT is, a little help is needed. Blockchain is a chain of blocks with encrypted information that is built in such a way that it cannot be hacked or something inside can be fixed. Parts of the blockchain, in addition to the already known cryptocurrencies, are tokens. There are several varieties of them, we are interested in exactly the one that is non-fungible, that is, unique – NFT (non-fungible token). Tokens can be compared to timesheets or tokens, in which authorship and affiliation are spelled out.
Blockchain is a fundamentally decentralized system: there is no central office for some giant corporation in California that runs everything. Therefore, for many people, including artists, working with this system is attractive in its idea and is associated with the revision of many established economic, cultural and political models. More info: https://whimsygames.co/services/nft/
How to get started and is it worth it?
To become a member of the NFT market, you first need to create an Ethereum wallet and replenish it, and then tokenize your work on a marketplace that sells crypto art, for example, OpenSea or Rarible. But given the number of artists who have discovered a new venue, there is a huge risk of debuting unnoticed. Therefore, you need to lay in the time and funds for promotional campaigns, that is, seek informational support from the illustrator community. It is even better if you already have a formed circle of admirers who will support the first projects. It is absolutely not difficult to tokenize the work itself, it is more of a technical task, but you have to work hard with sales, they largely depend on your popularity, so in this respect the work is no easier than in the traditional market.
During the existence of the project, more than 11,000 tokens with the right to art objects were sold, and now there are about 19,000 on sale. However, artists and designers receive far from all income from the sale of their creations, but it is distributed as follows:
- 61% goes to the creators of the work;
- 24% goes to the site;
- 15% is transferred to KnownOrigin partners using smart contracts.
What’s next for NFT
Small businesses interested in NFT can find other uses for it besides investing and selling. NFT holders can offer their digital assets as collateral for a loan, or lend them to other users on marketplaces like NFTfi. Tokens can also be tied to privileges or club membership. A group of 10 music venues, including the Troubadour in Los Angeles and the 9:30 Club in Washington, are participating in a crypto art auction. Each is tied to a specific institution and entitles the owner to receive a VIP pass or other privileges. NFTs may replace tickets for concerts and other events. Mark Cuban is exploring the possibility of using NFTs as tickets for the Dallas Mavericks games, which will allow the club to earn royalties from ticket resale.
Blockchain makes unique and secure
People may be familiar with the term “blockchain”, which is actually a ledger of transactions.
For bitcoins and other digital currencies, the blockchain tracks token sales. This helps maintain order in digital currencies as the transaction log confirms the number of tokens used and potentially provides proof of ownership to specific owners.
Due to the cryptographic nature of blockchains, any attempts to change one block will be detected. This ultimately ensures the security of the blockchain.
In case the NFT is linked to a blockchain, this may allow the parties to verify the validity of the game development services – Whimsy Games. This is usually built on top of one of the existing blockchains like Etherium.
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Source: Plato Data Intelligence
