NFTs are unique digital assets that use blockchain technology to certify their ownership and authenticity. Unlike cryptocurrencies like Bitcoin or Ethereum, which are fungible (that is, interchangeable with each other), NFTs are unique and non-substitutable.
This makes them ideal for representing works of art, collectibles, or even virtual assets in video games.
How do NFTs work?
NFTs are based on blockchain technology, specifically smart contracts that recorded ownership and transactions. Most NFTs are based on the Ethereum blockchain, although other blockchains may also support them. Each NFT is attached to a unique address on the blockchain, which ensures that no one can change its details or falsify its ownership.
NFT and Numerical PropertiesNFTs allow you to own digital goods such as images, videos, music or objects in virtual worlds. These assets, although they can be copied, have only one real owner registered on the blockchain.
This adds a new dimension to digital goods by allowing creators to better control their distribution and collect royalties on resales.
Applications of NFTs in art
One of the most well-known areas for NFT use is digital art. Platforms like OpenSea or Rarible allow artists to sell their creations as NFT, guaranteeing their authenticity and rarity.
This has allowed works to sell at exorbitant prices, such as the work of artist Beeple, which was sold for over $69 million.
The NFTs in the video game world
NFTs are also becoming more popular in the video game world, allowing players to own unique items or characters in online games.
These digital assets can be traded or sold on dedicated markets. NFT-based games, like Axie Infinity, allow players to earn crypto rewards and exchange their NFTs for real currency.
Criticism and controversies around NFTs
Despite their growing popularity, NFTs are controversial. The environmental impact of blockchains, especially that of Ethereum, is often criticized because of the amount of energy required to validate transactions.
Some also question the sustainability of the NFT business model, arguing that it could be a speculative bubble.
The future of NFT
The future of NFT looks bright, with applications constantly expanding, from works of art to music, real estate contracts and event tickets.
While many challenges remain, including environmental and regulatory, it is undeniable that NFTs are transforming the way we perceive and interact with digital property.