Have you ever heard of NFTs?
Can you believe that digital art NFT sold for a whopping $69.3 million recently on Blockchain?
Yes, recently, a collage of pictures by digital artist, Beeple sold his work to Vignesh Sundaresan for $69.3 million dollars and he said he was ready to pay even more. Vignesh Sundaresan is an Indian who bought this digital piece of art, but he has built many startups throughout his career and started mining cryptos in early 2013. So, does it mean anything to you to buy an NFT that is a digital collage for $69.3 million?
First, what is NFT? And what does it mean?
NFT is abbreviated as Non-Fungible Tokens in the Blockchain landscape. For the uninitiated to understand, Fungible Tokens can be compared to Fiat currencies, where you really don’t mind if people are paying ₹500 in 100’s or as one single ₹500 note. Same way, all the cryptocurrencies are fungible tokens, you can replace one bitcoin with another bitcoin, the value doesn’t change.
On the other hand, Non-Fungibility can be compared with unique and collectibles items. You can’t really exchange your collectibles for any other collectibles. For example, a particular gem would be different and unique and cannot be replaced with some ordinary gem. No two NFT’s are the same.
In the simplest form, NFTs are the digital verifiable certificates that represent your collectibles and unique assets that can be easily traded on the blockchain network. Same as how people are willing to buy a unique hand art that they’ve kept in the museum, but here in digital format.
These NFT’s are actually not new. In the Ethereum blockchain, CryptoKitties, a digital trading game on the network is allowing people to buy, raise and sell unique virtual cats on the platform.
Each CryptoKitties has a unique 256-bit DNA sequence which gives them their own appearance which sold for thousands and thousands of dollars.
Even a Twitter CEO, Jack Dorsey’s first tweet sold for nearly $3 million in the blockchain network.
So, is it too hyped, or what's the matter with it? The above cat is cute but would you pay that much amount of money as a collectible? It depends.
“The piece is going to take on a life of its own, that’s what makes NFTs really interesting,” Vignesh Sundaresan said. “It may not just be a piece of art, it can become thousands of other things. But I won’t be selling it anytime soon.”
He feels that there’s going to be more in the future for collecting valuable assets virtually on the network and so do the others who bought the NFTs. After reading this: Click here to know more about his views.
I personally feel NFT’s are a really good concept and one good innovation in the crypto landscape, where soon there is going to be an economy around it. Because it has a very good use case where people can register their valuable assets or collectibles in the blockchain network and can sell it when there’s more demand. That will happen without any intermediary.
But I wouldn’t spend this large amount of money to buy this cute virtual cat or 15 years old tweet. I mean, all these things can be still viewed by anyone, you can still go and see Jack Dorsey's first tweet or the above virtual cat and keep it to yourself.
But, the only thing is you can’t own it.
Was it interesting? Let me know by hitting 👏 and if you’re really fascinated about collecting valuable assets, virtually or physically, do let me know here. I would like to know.
I have tried my best to pen down the NFT concept in the blockchain network. Blockchain is a tad more complex landscape. Even, if it is little that you learned from this article, then the purpose of my writing is done.