Nobody knew just a year ago .. an emerging digital asset that carries risks and hopes to get rich quick | head

A year ago, digital documents using NFT (NFT) technology were almost completely unknown, and this technology is an irreplaceable token encryption method that allows the issuance of a blockchain-based certificate that proves the authenticity of any digital product.

These digital documents documented with NFT technology have become a major driver of art auctions in recent months and their auction price reaches millions of dollars, since the record price achieved by American artist Pebble for a digital work with this technology, i which totaled $ 69.3 million, during an auction by Christie’s last March.

Emerging NFT technology for digital documentation has profoundly changed the arts and culture market and has become a major driver in the world of auctions, but its use remains complex for beginners and entrepreneurs in the field.

Few people had heard of “NFT”, a method of irreplaceable code encryption that allows a certificate of authenticity of any digital product, whether it be a photo, emoji, video, music song, press release, etc.

And here comes a tour of these “digital properties”, after it was recently sold – at a French auction – the first SMS in history, in the form of “NFT”.

What is NFT technology?

NFT is an acronym for “Non-Fungible Token”, meaning “non-interchangeable token” and stands for the inability to exchange any currency for an equivalent (example: exchanging a $ 5 banknote for a banknote of the same category ).

NFTs can be defined as traceable “digital properties”. Specifically, it is a contract, the terms of which are determined by an information code for a virtual or real good.

These rules may limit the number of copies available for sale, allow “reprinting” or regulate a revenue distribution system that allows the original employer to receive revenue for each transaction.

NFTs can be defined as traceable “digital properties”. Specifically, it is a contract, the terms of which are determined by an information code for a virtual or real good.

“NFT” has become a new type of digital asset, similar to cryptocurrencies like “Bitcoin” that uses blockchain technology (Blockchain), ie a document reference shared by a large number of individuals without a central authority.

How is it used?

As with cryptocurrencies, it is possible to buy and sell NFTs on specialized platforms.

During the process, the buyer does not necessarily receive the specified part, but is only given a Certificate of Authenticity registered in Blockchain to change ownership.

To maintain the rights in this certificate, a digital wallet is required, whether it is a program in the form of an extension in a web browser, or a secure connection in the form of a USB bus.

Prior to purchase, payment must be made in cryptocurrency, but it is also possible to “create” an NFT portion yourself, relying on some IT skills.

What are the risks?

Buying, selling and using NFT is still technical and sometimes misunderstood, which can put small and start-up investors at risk.

For any interaction with Blockchain, the need arises to pay costs for those who take care of the verification of transactions.

A recent report published by the specialized platform “Chain Analysis” showed that the purchase of a newly created “NFT” by a host group is a very competitive process, as thousands of users hope to buy it at the same time.

In this case, many transactions fail, but the fees are still unpaid and sometimes high depending on the price of the cryptocurrencies often used to pay them.

But some buyers are determined to succeed and can use bot (powerful ordering software), making the transaction more obscure for a novice investor.

The study concluded that in 2021, “a very small group of experienced investors captured most of the NFT Groups’ profits.”

Who buys it?

Buyers are especially collectors or speculators who hope to make a profit by reselling them later at a higher price.

“NFT” was the focus of many auctions that caused a global uproar, including, for example, the sale of Twitter founder Jack Dorsey’s first tweet for $ 2.9 million.

They are also used in video games, movies and music, and have also been the focus of unusual initiatives, including, for example, buying virtual land or raising virtual racing horses.

A very small group of experienced investors captured most of the profits from NFT Groups.

While recent auctions aim to attract traditional collectors to the NFT world, the priority is also to attract the new net worth, or Geeks, who have made millions of fortunes thanks to the high value of cryptocurrencies.

This market, which is directly linked to the world of cryptocurrencies like Bitcoin, includes private exchange platforms like Nifty Gateway and OpenSea, which were created at the ends of the art world.

Celebrities are turning to digital documents

This month, former U.S. First Lady Melania Trump launched her Immutable Signs Platform (NFT), the latest public figure to enter the field.

“I am proud to announce my new endeavor in NFT technology that embodies my passion for the arts and will support my continued commitment to children through the Beast initiative,” Melania said in a statement.

“Through this new technology-based platform, we will equip children with computer science skills, including programming and software development, in order to thrive after being outside the care community,” she said.

The first work with NFT technology will be a watercolor by French artist Marc Antoine Colon, entitled “Melanes Vision”, which will be available for purchase by the end of the year at a price of 1 sol, cryptocurrency blockchain “Solana”. protocol (about $ 150).

She will run Melania Trump’s NTF platform in Solana and accept payments on Sol cryptocurrency and credit cards, noting that this is Melania Trump’s first public project since she left office a year ago.

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