NFT — the not-so-new kid on the block in the world of cryptos
The buzz around NFT has once again gained significant momentum along with the recent explosion of interest in all things Cryptos. To refresh our familiarity with the subject, NFT is acronym for Non-Fungible Tokens, based on the ERC721 protocol , or unique blockchain-based tokens built to represent assets.
NFTs have been around the block for a few years now, with the most notable example being CryptoKitties, where users can collect, breed and trade for values (in Ethereum).
One of the key differentiation between NFTs and the all-too-familiar cryptocurrencies like BitCoins is that NFTs are Indivisible units of crypto assets that represent a piece of property as a whole, while you can divide a bitcoin potentially up to the 8th decimal place.
An NFT can be understood as digital representations associated with physical Collectible items, such as baseball cards or artwork. So when an artist puts up a painting for sale on an NFT blockchain marketplace, the buyer would purchase a unique token that represents the asset (the artwork) and can then prove authenticity and ownership of the digital art through blockchain.
Beeple (a.k.a., Mike Winkelmann), a well-known graphic designer from Charleston, SC, who produces digital artwork using NFTs, now has a celebrity following including the likes of Justin Bieber, Eminem, Katy Perry, and many more, as well as an Instagram account with 1.8 million followers, and a repertoire of digital art that regularly sells for north of $100,000 apiece. Artists like Beeple, who not only innovate through art , but also embrace cutting edge technology to deliver their work are the ones that get world class investors like Mark Cuban and Chamath Palihapitiya bullish and making significant investment in the space.
There are now regular Clubhouse sessions held around the subject, where most of the interest is generated around how NFTs can disrupt the sports cards collectibles industry, the gaming industry, as well as providing a new method of valuation for independent artists, musicians and many more.