PASSION . PURPOSE . PROGRESS .

What Are NFT’s And Why Are They Now Being Seen As A Game Changer For Creatives?



Non-fungible tokens, or NFTs, have exploded onto the digital art scene over the past year. Proponents for the tokens, say they are a way to make digital assets scarce, and therefore more valuable.  


A non-fungible token (NFT) is a unit of data stored on a digital ledger, called a blockchain, that certifies a digital asset to be unique and therefore not interchangeable.[1] NFTs can be used to represent items such as photos, videos, audio and other types of digital files. Access to any copy of the original file, however, is not restricted to the buyer of the NFT. While copies of these digital items are available for anyone to obtain, NFTs are tracked on blockchains to provide the owner with a proof of ownership that is separate from copyright.

In 2021 there has been increased interest in using NFTs. Blockchains like Ethereum, Flow, and Tezos have their own standards when it comes to supporting NFTs but each works to ensure that the digital item represented is authentically one-of-a-kind. NFTs are now being used to commodify digital assets in art, music, sports, and other popular entertainment. Most NFTs are part of the Ethereum blockchain, however other blockchains can implement their own versions of NFTs. [2]

The NFT market value tripled in 2020, reaching more than $250 million.[3] The rise of NFT transactions has also led to increased environmental criticism. The computation-heavy processes associated with proof-of-work blockchains, the type primarily used for NFTs, require high energy inputs that are contributing to global warming. The carbon emissions produced by the energy needed to maintain these blockchains has forced some in the NFT market to rethink their carbon footprint.

SOURCE: WIKIPEDIA

WSJ explains how they work, and why skeptics question whether they’re built to last.




SOURCE: WALL STREET JOURNAL


Investors have been spending millions of dollars on digital collectibles known as NFTs, or non-fungible tokens. But why are these crypto-based assets work and why they’ve become so popular.






SOURCE: CNBC International


PHOTO CRED:

Mick Haupt
Timon Klauser

Leave a comment

Related Posts

Uber’s $200 helicopter taxi: Manhattan to JFK airport in 8 minutes flat
Uber’s $200 helicopter taxi: Manhattan to JFK airport in 8 minutes flat
Need to get to the airport fast? In case you missed it, Uber now offers a helicopter service from downtown Manhattan to
Read More
DOCUMENTARY TO WATCH: The REACH Project
DOCUMENTARY TO WATCH: The REACH Project
The Regional Entrepreneurial Asset Commercialisation Hub (REACH) project commenced on March 5th, 2015 with grant funding
Read More
Russian Fashion Company 99 Recycle Turns Mountains Of Garbage Into Fashionable Accessories
Russian Fashion Company 99 Recycle Turns Mountains Of Garbage Into Fashionable Accessories
Russian fashion brand 99 Recycle is trying to tackle St. Petersburg’s mountains of garbage by creating an entire trendy
Read More