WHAT IS AN NFT?
I believe you’ve probably heard of NFT(s) somewhere or read it on the web or social media. But what exactly is an NFT?
The acronym NFT in the crypto world stands for Non-Fungible Token. A Non-Fungible Token is a unique digital identifier of an artwork item such as a graphic/photo, a video, an audio or other digital files such as a game certifying to whom the ownership rights of the item belongs to? Something that is Non-Fungible means that it can’t be plagiarized, interchanged, substituted or replaced with something else.
The NFTs data is stored and processed on the Ethereum blockchain where buyers of NFT items can verify the authenticity before committing to a transaction. The main goal of using NFTs is to curb publication and distribution of artist work without their prior-permission. As a result artists who’ve tokenized their work on the blockchain can realize the full monetary gain of their artwork which was being illegally diverted to quarks and greedy middlemen in the industry.
- In the Sports Industry: Players or athletes can tokenize digital highlights of their best moments (images or video clips) for their fans to buy. For example on 8th April 2021, The World Marathon record holder Eliud Kipchoge auctioned his career highlights of the Berlin Marathon in 2018 and the INEOS 1:59 Challenge in Vienna as NFTs for 17.9837 ETH an equivalent of about Ksh.4 Million at that time.
- In the Memes industry: Artists and creators of internet memescan convert their best work into NFTs enabling them to auction them for a price. For example the iconic Doge meme an image associated with Doge Coin sold at an auction for a whooping 1696.9 ETH an equivalent of about $4 million in June 2021.
- In the Music Industry: Similarly musical art can be tokenized into non-fungible-tokens making it possible to be sold on the blockchain.
- In the Movies and Film industry: moving images popularly known as movies can be converted and published by producers on the blockchain as NFTs and then auctioned on exchanges. For example the Warner Bros blockbuster movie Dune was tokenized as an NFT in September 2021.
- In the Gaming Industry: game assets and artifacts can as well be converted by game developers into NFTs and sold to willing players or customers of a game to own them.
- In Events Ticketing: tickets for whatever kind of event you may think of are now being proposed to be tokenized into NFTs and sold to prospective attendees by the event promoters.
- In the Virtual World | ‘The Metaverse’: perhaps you’ve read my article on the metaverse. Now in virtual worlds such as Sandbox, Decentraland, Star Atlas, CryptoVoxels and Somnium Space, users can buy objects such as virtual pieces of land! among other things. For example a piece of virtual land of about 16 acres on Decentraland was sold for a whooping 1,295,000 MANA which was about $913,228.20 in June 2021.MANA is the currency (cryptocurrency) used in Decentraland.
i hope you found this article informative. For more insights tune in on our next articles.