NFT: What is it?

Written by Anna Komashko
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NFT: what is it

NFT is an art that came from the future. In short, these are non-fungible tokens, that is, some protocols created on the blockchain network that cannot be replaced with another protocol. Thus, the NFT format can be destroyed but not replaced.

It all started with problems. The problem for the digital artist was that his work on the Internet is essentially not protected by law. So, for example, he posts some gif, and anyone can download it for themselves or send it to another. That is, you give the work for free. It turned out that there were a huge number of these gifs, but there was no market or monetization.

The idea of NFT came up to try to take into account three points

  1. To ensure that each file has a certain uniqueness, the artist could keep the right for his work: leave the author’s digital signature.
  2. To ensure that the file has a specific origin. You can copy it many times, but there will be some original ones owned by the artist who created it.
  3. To raise the significance of the work.

For all this, a platform was needed to see the original work and its author and then build a certain mechanism. This is how NFT was born.

The current generation of collectors doesn’t want to do analog art. After all, you need to ensure the painting, pay for a delivery, think about where to hang it, then dust it off and hide it from the sun. And if there are thousands of such works? It’s another matter when everything is on the phone. You can sell or exchange anytime. But there are still additional costs since the virtual world has its own commissions. Nowadays, not just individual collectors come to this market, but foundations and famous museums. So it became clear that the digital collection also carries weight.

Anonymity is also important. An art market is a dark place; 50% of it is in the shade. You see the cost of an image, but you don’t know who owns it. So far, a person can be traced only if he enters the data of his card when buying a painting.

This is a completely new world, incredible and with a huge economy. The NFT market tripled last year compared to 2019. It is growing and will continue to do so.

NFT – what is it and how can I earn with its help?

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