Guys, You must have heard the words NFT or Blockchain recently. That is, Jack Dorsey is selling his first tweet, a lot of people are selling digital art paintings. These are being sold through NFTs. Here, I'm talking about the NFT, not NEFT that is used in banking transactions. Because NFT has emerged as an important word in the realm of technology. It is quite unique but still not many people know about this. So, let's dive deep into the NFT or the Non Fungible Tokens. And if you enjoy reading this article then do share it with others.
You might feel odd to talk about NFT, but if you look at Blockchain implementation of which was Cryptocurrency or Bitcoin, just like that NFT is it's second implementation. And the profit of this implementation is you can sell unique, expensive, valuable, rare and one of a kind things.
What's the meaning of one of a kind? Its pretty simple, there's only one piece of a certain thing existing in the world. It means, the value of a hundred bucks is a hundred bucks, and if I bring to notes of 50 bucks each, they also value a hundred bucks. But, there is only one Taj Mahal, in the whole world. There is only one the Mona Lisa painting made by Leonardo da Vinci. Although you can create a duplicate of that painting, click its photograph, but there will be only one Mona Lisa. Just like there will be only one Taj Mahal. You can only see one India Gate, and one Gateway of India. There is only one piece of these things existing. To collect such materials and decide their ownership, NFT was made. That is, Non Fungible Tokens. That means, we took a piece of art that is unique and then I assigned a token to that piece. That makes the token a certificate of ownership. Which means, whoever holds that tokens, is the rightful owner of that property. That 'property' could be anything. It can be a song, it can be a painting someone made in MS Paint, or literally anything. And yes, this token is being stored in Blockchain. This is the best thing. What did they do? They took one thing and assigned a digital token to it. And then stored that token number digitally in Blockchain ledger. Basically, it is being stored just like Ethereum. They took a ledger just like Ethereum. But thing is the way the Blockchain works, decides way the ownership. I'll try to explain it in easy language. Imagine somebody took a painting, and assigned a token number to it, and stored it in the Blockchain's ledger. And the way Blockchain technology functions is decentralized. Its multiple copies can be seen on multiple computers all around the world. Which helps in defining that this particular artefact is assigned to this particular token. That is the basic concept.
And its benefit is you can make peer-to-peer transactions. That means you can transfer the ownership certificate from one person to the other. So, basically it's game is a lot like cryptocurrency, in short the way bitcoin or other cryptocurrency works, where it is only mentioned in the ledger which account has how much cryptocurrency, its the same case here. Here, it would be mentioned that who is the owner of this particular token and the person associated to the token is the rightful owner of the artefact to which the token was assigned. That is the basic concept. It was developed because you had to go to a server in order to make a trade but now that middlemen server is no longer prevailing. And the people can trade with each other directly. That was the basic concept.
As of now it is a part of Ethereum blockchain, but there is a specific blockchain for NFT in works and will be available soon, possibly. But the most interesting thing is, that the people are taking it very seriously. People are buying different paintings, digital work, digital art, or digital painting although you can see their photographs in market but the owner of the real photograph will be decided by the token. Jack Dorsey, the founder of Twitter, sold the ownership of his first tweet. In these terms, a lot of people are selling their artworks to other people. There can be some issues regarding it in future or maybe not. Neither I would recommend anyone to buy an NFT. Because this is a very different and strange concept, and a completely different thing.
NFT was originally made to get rid of the 'middleman' and help people trade things directly with each other. Basically, it's a lot like the barter system I made something which I want to sell it to you, and you will get all the rights to it, this is how NFT correlates with the Barter system. But its impact on the environment that is something we have to notice.
For instance, like we talked about Ethereum, its negative impact on the climate, especially carbon emission is something that shouldn't be ignored. Because we are all aware, that the way cryptocurrency is mined in Ethereum consume huge amounts of energy. This increases carbon emission and it has a huge carbon footprint. And impacts negatively on nature and climate. So, it is a very big question whether or not is it safe for the environment.
Other than that, the reason why it was made was to save time and energy to make a transaction. But Right now its under Ethereum and its electricity usage is too much. It is very interesting to note that NFT has a lot of positive but also a whole lot of negative impacts. Another thing to note is how much people are investing in NFTs. An artist named Beeple Crap got his digital art sold for $69 million about 1 year ago. That is a pretty big number. All that is still okay. But someone bought an old cat meme from 2011 for 5 million dollar. People are doing very different kinds of things with NFTs there are a lot of different concepts running in Non Fungible Token. So, it brought a different thing in the market, and now we have to wait and see how things turn up in the future. Even though people are interested in it now, but will it stay the same in future? And can you really provide the certificate of ownership through this? As we have seen a company gets their artefacts patented or copyrighted and they hold it in some scenarios but not all. So does it works in a standard way, and what about it's legal issues in future? All this will make itself known in the future.
And it was something old, but it came into trend recently. But it is an interesting concept, and we are also seeing an interesting implementation of Blockchain. But we have to remember that it has a huge carbon footprint. And its negative impact on nature and climate it also very huge.
And what do you guys think about NFTs do let me know in the comments.
Comments
Post a Comment