Day by day, NFT craziness is unstoppable growing thanks to the Ethereum blockchain. From gaming companies to content creators, even artists have started to utilize non-fungible tokens in their businesses or whatsoever. But what are NFTs and Crypto Art, and how do they work?
In 2017, non-fungible token made its first move to headlines after Dapper Lab has accounted for 95% of Ethereum network usage at its peak in its game CryptoKitties. paying $170,000 for a digital cat was considered weird back then, and now NFT is just blowing up all the headlines as its industry also keeps growing over days. So, we are here to tell you more about this ascribing provenance to uniquely distinguishable assets.
What are NFTs aka Non-fungible tokens?
NFTs are a special type of cryptographic token representing something unique in return. And because of their uniqueness, they are not mutually interchangeable, although it is possible to mint any number of NFTs representing the same object as well. And this actually shows the opposite of cryptocurrencies like bitcoin, and many networks or utility tokens, which are fungible in nature. So we can say that non-fungible tokens are creating a new side of crypto adoption.
So, no one’s NFT is the same comparing others as they are characterized by their unique qualities, as well as authenticity. You may think of them as a type of collector’s item which cannot be duplicated. For example, Pokémon cards might be the physical and known example as an alternative asset class in real life that we actually have met earlier. And now, NFTs are showing us this universe in a digital and online one. So it wouldn’t be wrong to see it also as collectible mania.
How Crypto-themed Artworks
There is still not an agreed definition for non-fungible tokens. But one of the interpretations is seen as crypto-themed artworks. They focus on the culture, politics, economics, or philosophy surrounding blockchain and cryptocurrency technology. And the other one is digital artwork, which is more popular lately. It is a direct blockchain form of a non-fungible token that is able to be transferred and soled of artwork in a cryptographically secure and verifiable manner by the ownership.
But there is still some confusion as well about attempting to formally define crypto art because of its gray areas and nuance. It has also been used to differentiate publicly register and authenticate preexisting physical artworks from forgeries in order to verify their ownership via physical trackers or labels. So, this still remains unknown to be classified as crypto art whether or not.
On the other hand, even graphic and 3D designers are now seeking new platforms to showcase their work. And also investors are looking for new places to fund while Bitcoin and Ethereum reaching their all-time high price as crypto art has given power back to the creatives. For example, Clarian North has entered the NFT auction representing a full album, Whale Shark on March 4, 2021, while also Kings of Leon had been planned to be the first musical album sold with non-fungible tokens, When You See Yourself on March 5, 2021.
It’s undeniable that most of the buyers are trying to speculate as collectors arrange their digital art using companies. What happens in the NFT industry these days is actually a paradigm of cryptocurrencies‘ growing sector. So these up-and-down signals of the non-fungible tokens take attention as well, while they are also making everyone remember the crash of the market many years ago, on the other hand.
But howsoever, the NFT market seems growing much stronger with the big and old companies participations and here to stay. So, make up your mind without forgetting digital content does have value and missing all the paradigms, while also crypto collectors along with big companies, investors, and also artists are invading to create their unique collections for the future. That means you wouldn’t want to be late for the party if this is what you are going to do.