The NFTs have been the most relevant topic during 2021. Its prospects for this 2022 as one of the technological tools under the digital coins platform with the most significant impact worldwide, not only among traditional users but also by investors and large corporations.
What do NFTs refer to?
Its acronyms can be confusing since we are not involved in the Cryptocurrency market, so we are not familiar with many of the terms and their definitions. Still, NFTs could define as non-fungible tokens, which in a nutshell are the set of assets based on works of art made through technological channels that use Blockchain and can be sold or auctioned at unimaginable values.
Use of NFTs
Tokens are the value representation of digital assets, so NFTs are tokens. They allow us to confirm the virtual ownership of some asset, not fungibles, because they are all unique creations, utterly different from each other.
They do even register in a decentralized database, thus somehow avoiding hacking.
This type of token allows verifying the virtual property of some digital asset or asset through the blockchain platform. That verification procedure is entirely decentralized and secure.
The NFTs can even program through smart contracts, where their beneficiary can obtain a percentage of the dividends generated by futures automatically, even having direct contact with users interested in the NFT available for sale and several benefits that arise over time.
Although it looks like science fiction or some virtual reality movie, it is not a lie, much less a hoax. The NFTs came to position themselves and provided a new opportunity for all those whose tastes for art are of the utmost importance and can generate income through such a sophisticated and secure platform.
A little bit of history of the First NFT.
The first NFT was created in 2017 through the Ethereum network, created by two young Canadians called CryptoPunks; this creation, in turn, promoted the cyberpunk movement.
Of this original version, there are already around 10,000 original cyberpunk projects, which generated a wave of operations and transactions based on these projects, achieving a global amount of transactions of 865,000 dollars in three years, not bad for having been the first NFT.
Although this is only the beginning, the popularity of NFTs began in 2020 due to the global crisis due to the COVID-19 pandemic and the need for many creative to generate income from home.
Still, they never imagined that this tool could achieve such high profits.
Such is the case of the work of art created by Mike Winkelmann, a creative American artist who created “The first 5000 days”, an NFT project that managed to sell his work for the modest sum of 69 million dollars.
How do we value an NFT?
Although, for many, it is easy to create an NFT, the fact of adding value to a digital work is not at all easy.
Consequently, part of its value comes from the position of the person who designs it and its digital assets or tokens in the blockchain platform that makes its property unalterable and easy to prove.
Verifying the user who creates the NFTs is one of the main factors of the valuation of digital works of art.
The younger generations are increasingly interacting with this Metaverse that, in a few years, will take possession of virtual reality, where digital identities will be the heyday of the moment.
That is why this type of technological tools, such as NFTs, could allow anyone to create and generate income through their social interconnection platform without the intervention of the most used media at the moment, such as Facebook, Instagram, or Twitter.
This type of digital asset has set the standard in all social spheres; more and more people, artists, musicians, plastic artists, and designers have ventured into this new digital environment.
At the moment, it is not easy at all to enter this virtual world as an investor consequently, it requires a certain level of knowledge and information that can make access to these platforms much more pleasant and accessible over time, so that adaptation does not be a traumatic process for the user but rather satisfying when seeing the desired profits generated.