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Confirming that a digital asset is unique and therefore not interchangeable, here are all the details about how it works, how it came about, and why it is too popular.

 

Table of Contents

What is NFT?

How did NFT come about?

How did NFTs become popular so quickly?

How does NFT work?

How is NFT Created and How Is It Related to Copyright?

Conclusion 

 

Recently, the rise of blockchain and cryptocurrencies has been followed by NFT technology. Today, when technology is intertwined with daily life, our lives are spent in front of screens. Many of us spend hours on social media platforms. Every day, we share not only content that belongs to us, but also content that does not belong to us, such as videos, photos, texts, on social networks. Well, do you ever wonder who is the creator or source of the content you share? The most important trend of recent days, NFT, actually gives us the answer to this question.

 

We can say that NFT is an “Immutable token”. It confirms that any digital file is unique. And it is a unit of data stored in a digital ledger called a “blockchain”. An NFT is similar to cryptocurrencies in terms of functionality. But unlike cryptocurrencies, they are not mutually interchangeable. So, in other words, it cannot be changed.

 

How did NFT become popular so fast? Why would someone pay $70 million for a work that can be easily downloaded from the Internet? Could NFT be a turning point for the art world? How can a laugh be sold as NFT? There may be a lot of things about NFT that are not clear to many of us. In this article, which we wrote to eliminate this confusion, first of all, "Where did NFT come from, how did it enter our lives?" Let's answer questions like:

 

What is NFT?

 

NFT stands for a non-fungible token, and its Turkish equivalent is an immutable money chip. You can think of NFTs, which are part of the Ethereum blockchain, as a kind of certificate for owning digital artifacts. NFT transactions are recorded through blockchain technology. These blockchains are encrypted in such a way that the data inside them cannot be changed. These digital assets cannot be deleted, copied, or synced with a similar asset because each NFT asset is unique in its own right.

 

The most important advantage of the NFT certificate is that you can also track the ownership and market value of the relevant artwork or digital asset. This is actually great news for digital artists. Because when an artist sells a work via NFT, he will be able to receive his commission on that sale in case the work changes hands. Moreover, with the NFT, the intermediaries between the buyer and the artist disappear.

 

How did NFT come about?

 

There is some controversy regarding the first appearance of NFTs. The colored coins on the blockchain are speculated to be the first NFTs to exist. Entrepreneur Yoni Assia states in a 2012 article that colored coins are laying the groundwork for NFTs. However, industry-accepted source information is that the story began in 2017 when American Studio Larva Lab released the first NFT product on Ethereum called Crypto Punks. The company, managed by two entrepreneurs named John Watkinson and Matt Hall, published another project called Crypto Kitties, which will go viral in a short time. It is also known that this project received an investment of 12.5 million dollars.

 

 

How did NFTs become popular so quickly?

 

Some features of NFTs, generally known as Ethereum tokens based on ERC-721 today, respond to the interest it has received in a short time. All NFT-related data is securely stored on the blockchain, which means that tokens can never be removed, destroyed or copied no matter what. While NFT developers can generate an infinite number of tokens, they deliberately limit production to maintain their value. NFTs are completely indivisible, which means they cannot be divided into smaller values ​​like bitcoin. With the capabilities of the blockchain, ownership of NFTs can be easily traced back to their original owners, forever eliminating the need for third-party verification.

The highest value NFT sale to date was "Everyday: The First 5,000 Days," which crypto artist Beeple has auctioned at Christie's. Sold for $69.4 million (approximately 523 million Turkish lira), the piece is a compilation of 5,000 pieces of Beeple. However, the demand of popular names from both the technology industry and the world of celebrities made NFT a trend in a short time. With developments such as the sale of Jack Dorsey's first tweet as NFT for $ 2.9 million and the sale of the song shared by Elon Musk on social media as NFT, the subject entered the radar of the mainstream media.

 

How does NFT work?

 

Anyone can create an NFT. You don't need to have extensive knowledge of the crypto industry for this. Before you begin, you will need to decide on which blockchain you want to publish your NFTs. Ethereum is currently the leading blockchain service for this business. Each blockchain has its own standard, compatible wallet services, and marketplaces. For example, if you create NFTs on Binance Smart Chain, you can only sell them on platforms that support Binance Smart Chain assets. This means you cannot sell the same artifact on OpenSea, an Ethereum-based NFT marketplace.

 

After choosing the marketplace, log in and upload the relevant file to the system. At this point, it is questioned whether the digital asset you uploaded is a copy or whether it belongs to a collection. After you follow the relevant steps and convert your work to NFT, you need to explain and price it. The process is that simple.

 

How to get NFT?

 

Before you rush to buy NFT, there are some key things to consider: the platform you want to buy from, a wallet specific to that platform, which cryptocurrency you will fund the wallet with to complete the sale. The platform you choose to make a purchase actually depends on what you want to buy. OpenSea, SuperRare, VIV3, Rarible are popular platforms recently. On the other hand, many NFT works are usually released due to high demand. This causes buyers who want to buy quickly to create demand. If you are a buyer, it is useful to fill your wallet in advance.

 

Why Is NFT Getting So Much Interest?

 

In fact, when answering this question, it is necessary to look from two sides. First of all, for artists, NFT offers a new market where they can present their products. NFT works are a great opportunity, especially for digital artists who have difficulties in bringing their works to customers. Artists can get the values ​​they desire for their works; we're talking about hundreds of thousands here. Also, as with physical art, the artist may retain copyright and reproduction rights. What's more, NFTs have a feature that will pay you a certain percentage each time the item is sold or changed hands. This allows the artist to make a profit if the work is very popular and its value suddenly rises. For this reason, more and more artists are eager to produce NFT works.

 

For a buyer or a collector, the biggest advantage of NFT artifacts today is that their value is indexed to cryptocurrencies. You can sell an NFT artifact you buy in an unimaginable amount later on. In addition, why humanity has been interested in art for years, why is it buying and selling art, you can buy NFT work and create your own digital work collection.

 

Can Everything Be an NFT Product?

 

So yes, digitally everything can be NFT, just as everything physically can be art. But what matters and is valued by collectors is the uniqueness of an NFT product. The more unique a product is, the more attention it receives. Finding millions of dollars in NFT works is no longer newsworthy. You can copy Beeple's picture, which sold for $69 million, as many times as you want, share it anywhere, or even put it in an article about NFT on a blog. You still can't get the value of the original work. The artist uploads another piece of information to his work that cannot be copied. At this point, we can actually consider NFT works as a step towards the digitalization of art. While what makes Starry Night unique is its canvas and the artist's signature, what makes Everyday: The First 5000 Days unique is the 'block-chain' information.

 

How is NFT Created and How Is It Related to Copyright?

 

NFTs can be generated in accordance with previous records on the associated blockchain of a set of character cryptographic hashes that verify that a dataset is unique. This cryptographic transaction process provides a unique digital signature used to track NFT ownership. It also provides authentication of each digital file. However, data links pointing to where the digital artifact is stored with NFT may disappear over time. Also, ownership of an NFT does not entail ownership of any copyright in the digital asset it represents. A person can sell an NFT that represents their work. When ownership of NFT changes, the buyer does not have copyright privileges. Therefore, the original owner is allowed to create more NFTs from the same work. In this sense, an NFT is a commodified value as proof of ownership separate from copyright.

 

For What Kinds of Works and In Which Media Has NTF Been Used So Far?

 

We can compare NFTs of artworks to signed works. The unique identity and ownership of an NFT can be verified with the blockchain ledger. For this reason, it has started to be used at an increasing speed and variety, especially for digital works. Let's put together several examples.

 

Digital Art

 

Digital art has become a natural habitat for NFTs. Because the flexibility and capabilities of blockchain technology have secured ownership of NFTs. And digital artists formed the most widely used and accepted community.

 

Mike Winkelmann's digital artwork "Everyday - The First 5000 Days", also known as Beeple, sold for $69.3 million in 2021. Another Beeple piece called “Crossroad” sold for $6.6 million on Nifty Gateway. The work is a 10-second video showing moving pedestrians passing in front of a Donald Trump figure. Also, Nifty Gateway is an online cryptocurrency marketplace for digital art.

 

NFT collection series

 

Collection Series

 

NFTs can represent artifacts such as card collections in a digital format. For example, in February 2021, the NFT of a LeBron James dunk card on the NBA Top Shot platform sold for $208,000.

 

Games

 

NFTs can also be used to represent in-game assets in any part of a game. This provides a unique opportunity to sell and market in-game assets. In user-controlled parts, of course. Because NFTs allow in-game assets to be traded in third-party markets without the consent of the game developer and the need for bureaucracy. Axie Infinity, for example, made a sale of $1.5 million “for title deeds to its digital land” in a single sale in February 2021.

 

Music

 

On March 3, 2021, rock band Kings of Leon announced plans to release the debut album as an NFT. At the same time, rapper Lil Pump has partnered with NFT platform Sweet to release his exclusive NFT collection.

 

Cinema

 

The movie industry has technical challenges in storing blockchain technology. These technologies are designed for smaller file sizes. It is adopting NFT much more slowly than digital art or music. On March 13, 2021, Adam Benzine's Oscar-nominated documentary Claude Lanzmann: Spectres of the Shoahi was auctioned as NFT on the Rarible platform.

 

Sports

 

Athletes are also starting to benefit from this NFT boom in various ways. NBA player Spencer Dinwiddie tokenized his contract representing his career, royalties, and income. Thus, it paved the way for others to invest as well. In other words, we can say that it has positioned itself as a company and offered its assets to the public. In addition, Dapper Labs is a blockchain technology-based company. He collaborated with the NBA to create NBA Top Shot, a marketplace for his digital clips.

 

Conclusion 

 

In today's article, we tried to give answers to all the questions about NFts. We hope that this blog post will be beneficial for you. We will continue to create useful works in order to get inspired by everyone. We are sure that we will achieve splendid things altogether. Keep on following Finage for the best and more.  


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