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Non-Fungible Tokens- Future of Fine Art Collection

Non- Fungible Token

The evolution of fine art collection.

The block chain technology that is used to make various crypto coins has introduced the most powerful ownership tool. The underlying technology of Non-Fungible tokens is revolutionary. If we look back at history the concept of ownership never existed. Our hunting-gathering ancestors didn’t need to own things.

Non-fungible tokens have indivisible unique value. They are digital assets, publicly verifiable and authenticated on a block chain.With NFT’s people can own anything and store it on the block chain network making it impossible to steal or destroy. Being in possession of an original piece of art is intriguing to humans. NFT’s first came out in 2014 but is gaining a lot hype now. It is now the trendiest way to buy and sell digital art and other real world objects via cryptocurrency. Within the past 4 years $174 millions has been spent on NFT’s.

How do Non-Fungible Tokens work ?

NFT’s exist on a block chain. A block chains job is similar to that of a bank. Maintaing a public ledger and recording every transaction. The tons of people on this block chain network validate the sale and purchase of these NFT’s. They are physical collective items but instead of getting the actual art you receive a digital file. It can be anything digital from music to paintings to meme’s or gif’s.

Why are Non-Fungible Tokens hyped ?

NFT’s not only give you the chance to sell and buy art. An artist no longer has to rely on auctions and galleries to sell their work. They can directly deal with the buyers. With an added royalty feature they can receive a certain percentage whenever the NFT’s are sold or switch buyers. And for a buyer its like any other speculative asset, whose value might someday go up.

NFT’s are exciting for crypto-investors, collectors and artists alike.

Why buy when you can get it for free?

Now one might wonder why waste money on something you can simply get off the internet. It’s basically a digital file anyone can copy multiple times. The answer to this is, NFT’s bestow on you something that can never be copied, OWNERSHIP of the Work. Only one person can own an NFT at a time. You might ask why MetaKovan bought Beeple’s digital art for $69 millions. Why would someone buy Jack Dorsey’s tweet or why would anyone buy a clip of LeBron James’s game top shot? These in some form have already been floating on the internet and are not exactly masterpieces like Mona Lisa or painted by Monet. Yet, many believe it is the future of fine art collection. NFT’s create a digital scarcity due its non-replaceable nature. One thing to always keep in mind, while an image can be replicated the token can’t.

To invest in Non-Fungible Tokens or cryptocurrency?

There are many places where you can buy and/or sell NFT’s, namely OpenSea, Rarible, Grimes choice, Nifty Gateway, Foundation along with others. A lot of these market spaces accept ethereum but an NFT can be sold in any currency.

Similar programming is used to generate NFT’s and cryptocurrencies but they are quite different. Cryptocurrencies are fungible. To further simplify, they can be traded or exchanged for one another. Crypto becomes a trusted means of investment and exchange due to its fungibility. Whereas, with NFT’s have a digital signature making it impossible to be exchanged or equal to another.

Just like cryptocurrency, NFT’s are termed as risky by many. The prices are volatile and future is uncertain. Thus, investing in it is a choice that may vary from one individual to the next. Its value depends on what the buyer deems its worth and may resale for a higher or lower price later. And again just like cryptocurrency, NFT’s  should be seen as an investment baring in mind the profits or losses it may incur.

 

 

 

 

 

 

 

 

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