Blockchain Technology: We Need to Talk About NFTs

Non-Fungible Tokens or NFT are popular in the crypto world. The term non-fungible means one-of-a-kind or non-replaceable. To understand the concept of NFT, it is essential to know how blockchain works. A blockchain is a software that works as a ledge. The distribution of the ledger takes place through different communication networks.

Blockchain is different from other trading platforms as it trades digital assets from peer to peer. This indicates that no one can manipulate or undo the transactions. The only way to modify is by gaining approval from the majority of the networks. This is a huge benefit over the internet. Through blockchain art, people can deal in non-fungible digital commodities such as drawings or music.

That is the reason why the Ethereum blockchain stores the NFTs. Ethereum blockchain is a digital ledger that offers certification and ownership of a digital asset. Using this verification mechanism, you can purchase a digital commodity registering it as NFT.

Why NFTs are Widespread?

Since the coronavirus pandemic, people working from home increased their internet usage. Furthermore, they saved a lot of amount on traveling because of the global lockdown situation. This resulted in the rise of traders betting on GameStop and other unloved stocks. Along the road, there was a time when the value of Bitcoin Ether, and other cryptocurrencies, dramatically increases.

So much so that the value of Bitcoin topped over $1trillion in market value. In an interview with CNBC, Whale Shark, an NFT collector, highlighted that people around the world are spending 50% of their time browsing on the internet and a huge amount of time on their computers. All these changes after the pandemic resulted in the boom of NFTs. According to a study by L’Atelier, a firm for NonFungible and BNP Paribas-related researchers found that the total worth of NFT transactions reached $250 million.

People Love Making NFTs

The reason why people started to love NFTs is that it facilitates artists to sell their unique masterpiece on different platforms. From the start, until now people have bought NFTs worth millions of dollars. Another thing that keeps NFT’s interesting for artists is that they also receive commissions on every work they sell out. This benefit is also applicable on resale.

For instance, Grimes sold digital artworks as NFT with a worth of around $6 million. The entire hype of NFTs is about the fact that any artist can now sell their masterpiece and earns the money they deserve. Furthermore, they can also achieve participation in the market and invest in Ether, which is a blockchain currency generated by the Ethereum blockchain.

Conclusion

Currently, it is hard to predict if the NFT art market will survive in the future, but today, artists deserve more than the hype surrounding tech-world opportunism and million-dollar sales. The market should be convenient because the attention economy related to NFT is not enough for hard-working artists. NFT should focus on promoting crypto-art landscape making in an inclusive place for the recognition of the artists. This is possible when the artists can honestly and transparently display their information on their work pieces.