What’s an NFT you ask?
Well, it a token. But not just any token. Here’s a condensed explanation.
Many people know of Bitcoin, the first mainstream crypto that is based on blockchain (digital ledger) technology. Bitcoin, and almost all cryptos are fungible coins / tokens.
- Fungible = divisible. You can purchase 1 BTC or .0000025 BTC.
- Non-fungible = not divisible. You can purchase 1 bored ape but cannot buy .000025 of an ape.
So, an NFT is a digital token that is not divisible. you buy 1, you own 1.
This lack of fungibility is what is great for the tokenization of things like art. You are now able to own unique 1 off, or one of a finite number in a series of art in the digital realm. You can carry your art with you, having access from any computer worldwide. Legacy art and its access is limited by its physicality. If you travel a lot (like I do) will you continue to ship your Roger Dean of Warhol painting? A simple answer is no, you would not.
NFT in art is game changing, much like mp3’s were to the music industry in the ’90’s. The issues with the mp3 format was there was no way to track ownership. You could (and I did) download music off of things like napster and you got the files for free. There was no to royalties to the artists, no way to track who really owned the file(s) and no way to resell them, but you had portability (much more than vinyl and cassettes).
NFT’s fix this.
Now, when you purchase a tokenized art piece as an NFT, your purchase is recorded on blockchains like Ethereum, Matic, Tezos and Wax. When and if you decide to sell, the sale will update the blockchain, showing the price paid and updating the ownership records. If the smart contract has a royalty written in for the artist (commission), then when the sale has been finalized all appropriate parties will get their payments, automatically.
So, the magic of NFT’s are the following;
- Portability of tokenized asset (art).
- Ownership traceability.
- Sales record.
- Perpetual commissions upon future sales.
- Ability to put up for sale across multiple sites.
- Ability for YOU to enjoy your art anywhere you are, on any device you have access to.
Hope this explains what an NFT is, in a very basic form and how it will change the world we live in.
Here one of cryptohodlers.io generative NFT works, for your viewing pleasure;