Before considering the nature of NFTs, it is worth talking about the blockchain. Blockchain is a system consisting of blocks of information combined into one chain. Each block contains information about all previous transactions within the chain. Transaction data is stored on servers. Blockchain gained popularity along with the development of cryptocurrency.
Token – an element of the blockchain, a digital coin, corresponds to a specific entry in the system. Tokens can be exchanged for identical ones, but this will not work in the case of NFTs.
Non Fungible Token (NFT) is a cryptocurrency technology based on non-fungible tokens. These are unique coins that, using blockchain technology, are tied to a specific object: songs, paintings, videos, 3d animations, and even tweets. After the purchase, the NFT token actually becomes a certificate of ownership of the object, but the owner of the token does not receive copyright.
NFT-the boom occurred in February 2021. The technology is actively used in the field of arts, and it is not necessarily something elitist. For example, the owner of the Nyan Cat gif-meme popular in the early 2010s sold an NFT token tied to a new version of the meme for $580,000.
Its buyer became the owner of a unique entry in the blockchain with this meme. A non-unique gif is still circulating on the Internet, where everyone can download it. This is an important point:
An NFT token does not confer copyright, but it secures ownership of the original work. Even simpler: when you buy NFT, you get a digitally signed work by the author.
In March, a painting by artist Mike Winkelman (alias Beeple) and an NFT token with it were sold at Christie’s for $69,000,000. The painting is a huge collage of 5,000 digital pictures that Beeple has been drawing every day for 13 years. He retained the copyright to the painting and, in fact, can produce copies of it.
Recently, NFT has gained popularity in the music industry. Electronic musician 3LAU’s 33-track album with a token for each sold for $11.6 million. Despite the fact that the album was released in 2018 and is available on digital platforms.
The Weeknd received $2 million for the NFT release of his released track in a single copy.
Kings of Leon became the first band to sell their album as NFT.
Grimes sold her paintings for $6,000,000.
There are many such examples, and a logical question arises – why, in fact, who does this at all, while others spend big money?
For authors, the logic is simple: NFT is a new and understandable way to monetize their work. Especially for those who do not have a large fan base, but have loyal fans. It is much easier for such an artist to sell their NFT release on a specialized platform than to wait for streaming payouts, which are unlikely to be significant.
For NFT buyers – an opportunity to support their idol and get a unique bonus from him. The previously mentioned 3LAU sold 33 tokens of its album, the most expensive of which granted the buyer the opportunity to order a track from the musician.
NFT is also a story about collecting. The purchased token is worth keeping, especially if it is tied to an object sold in a single copy. When exactly the time will come for its profitable sale.
During its existence, HDSHOT has gained vast experience and many connections with partner NFT trading platforms.
By contacting us, you will get maximum efficiency, as well as save a lot of time when creating | sale of the token.