NFT this word has been a buzzword among all socials in the recent few days. On the first go, it gave an impression that a cliché technical thing related to token and all. Yup, that's true it’s not something related to technology but it's a wholesome technical thing.
On that being said lets me first tell on what tech it is based on. This tech is behind the thing of which there were rumours of the Indian government to ban it, and it's a personal favourite of the Founder of Tesla, Elon Musk. Yes, Yes you guessed it well the thing is Doge-Coin and the tech behind that is Blockchain.
For some non-tech people, I would like to give a short description of Blockchain.
Let's assume a hypothetical situation where two people(who are each other’s competitors) are managing their accounts with the help of a merchant, he deals with all the kinds of financial things. Now, this is an example of a centralised system. Both are dependent on him. There are vulnerabilities in this system like the merchant can be bribed by either of one of the persons, if the merchant is doing something wrongs with the accounts.
When in this situation decentralization happens then there will be no merchant involved in the process. There will be an online chain of unknown people, where each user will have a particular user Id where one has received acknowledgement by all the users in the chain and then only something can be added or retrieved from the system. This is way better than the orthodox one.
When we see this thing as a little bit technical wise. Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. In this, there is a chain of computers/servers all along with the world. These people are called miners. In this, an element in the chain has three blocks namely Previous hash, Data integrated, Hash of current data integrated. Hash is basically a type of ID No generated when any data is integrated. When someone maliciously tries to enter data in the chain a different Hash number will be generated. That won’t be accepted by the chain as the previous hash was in the next block. To want to know more about blockchain working visually tap on https://www.youtube.com/watch?v=SSo_EIwHSd4&ab_channel=SimplyExplained
After having some pinch of information on Blockchain, let's move to our Blog Topic.
So in simple words, Fungible resembles replaceable things/assets that can be exchanged with corresponding assets, just like a barter system. So here the Word starts with Non-Fungible the thing that can’t be exchanged with the corresponding one cause of its uniqueness.NFT basically is more famous in the art domain.
Two make it more understandable an example of the stock market whose fundamental lies on the company that want more money to expand their assets and the investor wants profits over his saved income this is a win-win situation for both of them. Now let's relate this to NFTS, they are just the stock market thing just replaced by the art form. Now many questions must be bombarding your mind like is it ROI worthy? Why would someone prioritize buying this over any other asset? Will this go like any share of the company? IS IT any overrated Bubble Or true assets thing.
Why will I invest in the art form that can be downloaded with just a right-click? Should people ride this NFT Wave?
We will thoroughly go through all of this, Have patience… 🤞🤞🤞🤞🤞🤞.
Before starting this let me tell you that many famous celebrities decided to come up with their NFTS like AMITABH BACHAN, SALMAN KHAN, RAVI KISHAN.
Twitter CEO, JACK DORSEY sold his first tweet for $2.9millon dollars cause this was the first and last tweet like this.No other thing can be like that, so it makes the NFT concept unique.
Let's understand it by a simple story
When Neil Armstrong was going to the moon that no company was willing to give him insurance, so what he did was he signed many signatures that at a later stage became autographs. He assured his family security by doing this. Now his signature value is around 4.5Lakh.
So basically people are investing in NFT cause prime their vision goes like that this will become very rare in future. Assume a random situation you bought a celebrity NFT and after some decades that celebrity died. Now many people can use the opportunity to sell the NFT to his die-hard fans. This type of psychology is very common in India many such things are always open heartily welcomed like We can say MS DHONI,2011 bat was auctioned at the mouth-watering price of 83 lakh.
Now same is like with the aspect of NFT, may you make 1000 of a copy of anything original like china does with every OG product, the credible person will be the owner of the art form, in turn, this will manyfold the value of Original product. In this blockchain form NFT whosesoever will sell this NFT will be the digitally certified owner of the art form via a Token(ID NO), to add the cherry on the top this gives the feeling of ownership, credibility.
Also now talk from the artist perspective. This definitely a blessing for the artist as he getting paid a hefty amount without any physical hassle and also he gets 10% commission on every sell of his NFT by the first owner, this is pretty good for the creators economy. Also, it gives a somewhat much easier process than getting the artwork’s patent also it many prerequisites and restrictions. And it involves many physical formalities like report application.
Currently One can purchase NFT via a cryptocurrency known as Ethereum. One can buy sell create NFT via this site https://rarible.com
This field also has many darks sides like Art theft, plagiarism. Wanna know more https://www.nftsstreet.com/the-dark-side-of-nfts-and-crypto-art/
Now I guess it will be very early to ride this wave as it is just an emerging trendy topic that can be deprecated or banned due to its environmental consequences as it requires an ample amount of computational power its leads to carbon emission that further lead to global warming. And it's basically too early to ride this NFT wave, lets wait for the market’s reaction and some more remarks on its sustainability.
Thank you for reading!!!!🤞🤞
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