Recently, with the sales developing in the art world, a concept "NFT" has become the center of our lives. As Profiks, we wanted to share with you the answers of 10 questions asked about NFT with a content. As I said before, what can be done with NFT is about the limits of our imagination… I wish you a pleasant reading.
What is NFT?
NFT, or Non-Fungible Token, can be defined as a unique digital asset that contains evidence of a picture, audio file, video or digital equivalent of a physical asset. NFTs, whose foundations were laid in Ethereum in 2017, have become one of the most popular topics in the cryptocurrency world in 2021. While NFTs are widely used today for digital artworks, they also have different uses such as interactive game items and sports collectible cards.
How is NFT different from other crypto currencies?
Non-Fungible Token means a token that cannot be divided and cannot be reproduced from the same. Unlike cryptocurrencies such as Bitcoin and Ether, which are fungible, NFTs are unique digital assets. To explain with an example, today you can buy and buy a Bitcoin or Ether by dividing it into pieces and exchange the same cryptocurrency in its own currency. However, it cannot be exchanged for another token, as it is not similar to NFT, which is a private digital asset. Its intrinsic value is determined by its producer or investor.
image: Reuters
How are NFTs produced?
NFTs are produced according to the ERC-721 token standard prepared by Ethereum developers. There are platforms that enable the transaction to be carried out easily so that users do not get bogged down in the technical world of blockchain. The only thing you need to generate NFT is a digital cryptocurrency wallet. After uploading the file you want to produce as NFT to the IPFS system via these platforms, you must specify the parameters of NFT that cannot be changed. After determining the features such as how many NFTs will be produced, the price, how much share will be paid to you in the next sale, NFTs will be produced by paying the transaction fee of the blockchain network. Upon completion of the transaction, NFTs are transferred to your wallet and recorded on the entire blockchain where the production is carried out.
How do I get NFT?
There are also platforms where NFTs are exhibited and purchased. You can have the NFTs you like on these platforms, as determined by the manufacturer, with auction or direct purchase options. When the purchase is complete, NFT will be transferred from the manufacturer's wallet to your wallet. If you want, you can resell the purchased NFTs through marketplace applications. You register on the blockchain to an NFT Marketplace such as Rarible, OpenSea or Mintable to sell your NFT.
Is NFT an investment tool?
NFTs are different from other cryptocurrencies due to their design and their value is determined by the person or investor who produces the work rather than the command board. If we interpret the subject of investment through digital artwork, it is not much different from investing in physical art. Similarly, the value of an asset that you purchase as a collection item is determined by parameters such as how rare that asset is, its age, and its cosmetics.
What effect will NFTs have?
If we consider the current usage areas of NFTs, we can say that they first solve the intellectual property problems. While it is very easy to copy a work in digital environment, NFT solves this problem by revealing who owns the rights of the work. Since they are a programmable digital asset, the shares that the artists will buy from the next sale can also be encoded into the NFT. Thus, in the event of the sale, the relevant amount is automatically transferred to the artist's wallet. The digital nature of the works allows all types of users from all over the world to buy them. As the customer base expands thanks to digitalization, the number of people who can access and invest in the work increases and the demand increases, and the price increases as the demand increases. As the demand increases, so does the supply. Both more works and works at different price levels are coming to the market. This increases accessibility for investors and art lovers and enables more works to be sold. The ecosystem is expanding.
How can I be sure of the authenticity of NFTs?
In the cryptocurrency ecosystem, the reputation of people is highly important. Artists who produce NFT and want to put it on sale go through the verified profile stream used by NFT marketplace apps to prove that their work is original. If you have the wallet address of the relevant artist, which are shared publicly for payment purposes, you will have a chance to confirm the authenticity of the work. In addition, you can be sure of the originality of both the artist and his works by following the NFT's movements from the blockchain monitoring application.
Where are the files in NFTs stored?
NFTs contain evidence of many file formats such as picture, sound, short video and document. Because these files are difficult and costly to be stored on the blockchain, they are stored on a distributed file storage protocol called IPFS. Uploaded files are encrypted and divided into small pieces and shared among IPFS addresses. Proof that the relevant file has been uploaded to IPFS is saved on the blockchain with NFT.
What are the sound NFT sales?
If we talk about the most interesting sales of the last period; US artist Beeple (Mike Winkelmann) sold a collage of his works for $ 69.4 million at auction organized by the auction house Christie. Lebron James' dunk video NFT, sold through the NBA Top Shot app, found buyers for $ 77,000. Twitter CEO Jack Dorsey's tweet was bought by a Turkish-born person for $ 2.9 million, while Elon Musk put his tweet, which included GIF and music, to auction as NFT. sold.
What are the NFT usage areas of the future?
As the experience with NFTs increases, we see that creative new business models are also being set up. First, the digitization of physical assets, ie tokenization, can be adapted to a wide range of sectors. For example, a house designed in the 3D virtual world in America was sold for $ 500,000 last week. In addition, we know that in some games, land sales are also made as NFT. Another area where NFTs will have an impact will be social media. Metrics such as the number of followers, views and views that content producers turn into money will become unmanageable by central social media companies thanks to NFTs. Digitization of physical assets, on the other hand, seems to cause us to redesign many of the processes we are accustomed to. In the future use areas of NFTs, we can think of a scenario where states produce their bonds as NFT and can trade them globally. Frankly, we can say that the business models in the NFT world are limited by your imagination.
By the way, the first of my symbolic work series ( NFT's), which I recorded in memory of being the first, is still on sale.
https://mintable.app/art/item/Whos-Looking-at-Whom--Whos-Looking-at-Whom--is-a-digitally-produced-nude-painting-Digi-collage/30uiigsSUtGpO-l
https://mintable.app/art/item/A-Mans-Scream-Both-Digital-NFT-and-Original-Oil-Painting-A-Mans-Scream-Both-Digital-NFT-and-Original-Oil-Painting/yFvXf9c-sOyqgn2
I am selling my oil painting "A Man's Scream" as NFT. I will also send the original of the painting by cargo to the buyer who purchases it as NFT.
Sales revenue of this oil painting artwork will be spent for the education of refugee children who fled to Turkey from their own country because of the war.
Features of my table:
Oil painting on canvas,
No frame,
Black and metallic copper two-color stain work,
Dimensions: 70 x 51 cm.
https://mintable.app/art/item/Pink-Tourmaline-Digital-Gemstone-Pink-Tourmaline-Digital-Gemstone/icog7aIM8t7v2OB
Donation
Bitcoin: 17LLfvG3NZjDjMQ5riiEGhnx74ndJPKK7v
Ethereum: 0xE83EcB9A57bBae543D1d41bC45F54Cac9587585F
MetaMask : 0xb6ba437144C6a417b67645bE4513F06bD81Fb60E
