In this piece, we’ll try to pull the strings on the buzzword that is trending at the moment NFT.
NFTs were born as a natural evolution of blockchain a few years back. In the last few months, NFTs have experienced growth both in the marketplace and in the media.
Many things have been said about this technology both in a positive and critical manner, and often not too objectively. We will today attempt to understand the true role of NFTs in our everyday lives, and especially in the near future. Before we get into the long-term discussions regarding the reasons behind NFTs in their beginning and future outlook, let’s look at the beginning.
What exactly is an NFT?
It’s an acronym for “Non-Fungible Token”. What exactly does it mean? Concerning fungible items, such as banknotes (which can be exchanged for different banknotes of the same value), non-expendable goods indicate that the goods aren’t replicable and replaceable, because they are distinct in.
A digital signature with a certificate of authenticity is used to give the uniqueness. Blockchain technology is utilized to issue this certification. NFTs are thus associated with digital content, which guarantees the characteristics of authenticity and exclusivity, and gives the owner a document confirming the authenticity of the digital item of interest and owned by the NFT. Every NFT thanks to the blockchain, is a unique piece of art and is therefore transferable or non-transferable. In essence, this is an NFT.
Are there any limitations to the creation of NFT? There is nothing special about it: anything that is stored on a digital media can be converted into NFTs, provided that you own the rights to use (if your intention is to sell it).
What are the NFT’s doing today?
Today NFTs are an investment trend that is moving millions and billions of dollars. This fashion is likely to continue for a long period, but with potentially more implications than the currently speculated.
A lot of people screamed out at the scandal after the figures were released, and many responded by in defense of NFT technology. Matt McNally, an NFT investor, reminded people that the majority of products of today are similar to NFTs. McNally stated that while it is possible to say that purchasing certificates that claim to have a easily copied image is absurd, it’s possible to claim the same about 99 percent of all other products.
NFTs can be speculation however there are certain things that aren’t. I may have thrown away thousands of dollars on NFTs, but you could be throwing away thousands of dollars in the market for stocks, buying lottery tickets, or buying items you don’t really need”
A market that is attracting such a large amount of money has one meaning. It indicates that there are still requirements to be satisfied. In this situation the NFTs can help.
And what are these needs? First, to give meaning to something that didn’t exist prior to the advent of digital art and rights to creators. The second reason is the requirement to ensure “recognition” (social, economic) of people also within digital space (and thanks to digital assets), currently not satisfied.
NFT sales have risen to $10.7 billion at the end of the third quarter 2021. COVID-19 also played a role in the growth. It allowed a large number of people to live their lives digitally. Many artists, musicians, and performers – – who were the most affected by the disease -were able to transform themselves by using the NFTs that have enabled them to earn profits.
One thing that cannot be stated regarding NFTs is that they were created without any goal. However, a question remains what is the purpose achieved? It is all dependent on the field. One example of the limitations of NFTs is that many people are asking, “What is their practical value? What can I do to make the most of it?” It is a query that can only be partly answered with the statement that they are financial investments.
But this situation is changing thanks to the advent of metaverses, in which users are able to utilize and display their NFTs. Facebook’s announcement of its intention to launch its metaverse is an indication that the road to virtual realms where users can use its NFTs has been paved.
What exactly is a metaverse you ask? The canonical definition is: A three-dimensional space in which human beings can travel, share information and interact using avatars of their own. While there’s no definitive definition, it indicates that you can connect with other people and share your thoughts or create your avatar and generally gain access to a virtual space that allows you to meet other people and feel like you are.
In the present, there are around a dozen (depending on which metaverse definition you want to use). Let’s see some examples.
Roblox is one illustration of a metaverse. Roblox can be modified by users using certain NFTs.
One illustration of an NFT initiative is developed by Gucci that has sought to connect with new buyers in the metaverse by launching an exclusive “Gucci Collection” made up of NFT that includes glasses, bags, and hats which can be utilized by avatars of users in the game.
Decentraland is a different well-established metaverse. A good example of a project with NFT within this virtual realm is that of Coca-Cola which has recently launched virtual clothing branded as NFT even holding the Rooftop Party on the platform to commemorate the launch.
NFTs have many advantages They are also very profitable to create them and sell them!
NFTs can be a blessing for both brands and creators.
A new billionaire market born from the air in recent times: the possibilities of profit are practically unlimited and the cost for individuals and businesses are minimal.
There are a variety of applications. It is possible to sell anything as NFT. All you have to create digital copies. You can also tokenize products or digital works of art or build collections of thousands of objects.
In addition, NFTs incorporate the advantages of blockchains, such as decentralization, disintermediation, registry immutability, traceability and verifiability of its content, movement and transfers.
Additionally, you can earn from the third, fourth, and five sales. You get paid every when your NFTs are sold to other people. Blockchain allows an audit trail of each ownership transfer. An ongoing stream of revenue, and unlimitable in time.
Limits of NFTs
We will now discuss the issues that could threaten the viability of NFTs. Let’s begin by discussing the issue of rights of use and sale.
Quentin Tarantino, the famous film director, recently announced his participation in NFT art. He has created seven digital copies of his handwritten scripts , accompanied by audio commentary, and then the scanned the scripts digitally. The issue is this instance – that the production company for film, Miramax, decided to send a warning letter to the director stating they own the script the rights to the script and they do not wish to give rights to film materials, when in fact the script belongs to the director.
Let’s look at another example: Emily Ratajkowski, a model and actress, sold an NFT several months ago. The work was a composite image which showed a photograph of her standing in front the print of an artist. The print contained an image of her taken (presumably) somewhere else. A nice fuss, but basically the objective of this artwork is to examine copyright in the realm of digital art.
NFTs permit artists to obtain the rights to their work as they provide royalties for any future sale of the same product. However, NFTs are links that are linked to different URLs and may be any kind of. They could be a script, or a photo, or even a 3D model, or a song, and the list goes on. The medium is distinct however the result is distinct. NFTs aren’t the solution to the copyright issue.
A step forward is therefore necessary at the legislative level that takes into consideration tools like NFTs and, finally, finds an effective way to protect digital artwork.
Fashion that isn’t focused on quality
Another “problem” associated with the industry, and which is at risk of affecting its success is the rise of low-quality NFTs: since anyone can make an NFT even with a minimal amount of technical expertise, the rapid growth of the market has resulted in a general inferior quality of the items for sale that however – and it must be admitted – are typically bought equally.
As you can well understand, such an operation does not have any interest in the NFT as such, but in the financial investment behind it. The cryptocurrency is what interests and is a factor, as well as the fact that there’s something “attached” – that is, the NFT – no matter, is one more.
If that is the case then purchasing NFT is equivalent to purchasing cryptocurrencies.
We believe this behaviour is only exhibited during the initial stage in which this technology is identified: people who are not experienced can easily get hold of the technology and make poor investment decisions. As time passes, the quality of investment will improve towards parameters closer to a mature market.
Two words that don’t go together: immortality and digital
NFT must be considered in relation to structural technical issues, which are specific to blockchains. We saw this in the first chapter NFTs are smart contracts placed on a blockchain and refer to the digital asset that you have.
But what happens when the blockchain reference ceases to function as an actual blockchain, or ceases to exist? What happens if the smart contract hyperlinks to the content cease to function?
The NFT Hic et Nunc Marketplace, which had more than $50,000,000 in sales and was shut down few weeks ago. The customers were not provided with any explanation for the decision. Nothing serious, also because no one was hurt and no one has seen their NFTs disappear (since the marketplace’s only task of intermediating) But what has happened must sound an alarm bell to fans.
As new technologies enter the market, shaky new firms attempt to ride the wave of success without having the right tools, putting at risk innocent investors and users. Believing in the major players on the market is the best way to avoid danger. In this instance it’s OpenSea or Ethereum.
NFTs consume a lot of energy (?)
A couple of months back Jason Citron, CEO of Discord – one of the most-loved messaging apps in the world was able to make an announcement that was certain to blow up the fans away: he posted an image of the application that shows how Discord would soon be integrated with MetaMask and WalletConnect which are the most popular payment systems for NFTs and cryptocurrency. Unfortunately for him, users did not take it very well.
In a tweet that reflected the sentiments of many, one user responded to the tweet “I can’t wait to tell my acquaintances that Discord encourages pyramid schemes at great environmental cost. Thanks for the warning!” Citron has since retracted his comments and stated that Discord will not incorporate NFTs or cryptocurrencies at the present time.
Looking for NFTs? Head on over to apenft marketplace…
This shows us that NFTs can trigger a range of reactions from people conscious of environmental concerns. We are all aware of the negative environmental impacts associated with blockchain technology. To track and store transaction data is a huge amount of energy.
NFTs don’t cause harm to the earth. They are actually a small proportion of the energy consumed by blockchain. Non-profit organizations often make use of NFTs to recover funds to aid in protecting the planet. For example the WWF also sells its NFTs to safeguard endangered species…remember, however, that it’s always best to reduce the impact on the environment of your operation whether it is using green or renewable energy to mine, or setting as your goal to recover funds to finance energy transformation as well as the conservation of the planet to enhance your brand’s reputation.
Intermediaries wield too much power
There is a limit to NFTs that intermediaries can also be employed. In reality, a brand or a creator who wants to create and sell their NFTs will have to turn to two third parties: the blockchain, that allows them to devalue their token and a marketplace where they can place it on sale. NFT-Commerce is a commerce platform that specializes in NFTs.
How does it work? It’s easy: our system will allow you to create an online link between your application or website with the blockchain reference. It can be done by using a specific wallet or through an online payment processor using credit card. The NFTs you purchase can be bought by the user directly via their cryptocurrency, or by credit card payments.
This software lets you save the commissions charged by third-party retailers and also to control the shopping experienceand retrieve customer information.
We’ll provide a free test if you’d like to learn more!
Conclusions: why selling NFT makes you money
NFTs are the future of finance, it’s obvious. They address demands that have been ignored by organizations and other institutions. Beginning to investigate this field immediately can yield huge benefits and give you an advantage over other companies.
When considering NFTs, it is important to look at the advantages and possible challenges associated with a brand new technology. It is also important not to get caught up in superficiality. For this reason, it is crucial to seek for support from people who have lived and work within the field of blockchain. Since when a new market develops, having the support of the people who have succeeded in creating expertise is essential.