What is NFT?
1. What is NFT? Can we make money on it?
2. Profit certificate of authenticity
3. NFT cause the formation of conservative circles
4. How do we create NFT?
What is NFT? Can we make money on it?
NFT is an acronym for the English phrase non-fungible token. We translate it as “non-exchangeable token”. We have already written a bit about what a token and tokenization is. In the article where we discussed this process, we also mentioned NFT. So what is a “non-fungible token”? In this case, we understand the slogan “non-exchangeable” as “one that does not find a substitute in other goods or currencies”. Based on this explanation, we can conclude that NFT tokens do not have a specific value. We can evaluate each of them individually. NFT, therefore, is digital content that we connect to the blockchain. Blockchain in this case means a database. This is what we base cryptocurrencies on. What is the difference between cryptocurrencies and NFTs? Cryptocurrencies can be successfully exchanged like money, so we assign each bitcoin the same value as another bitcoin. The equivalent of bitcoins means that we can freely exchange them. What is NFT and what can it offer us?
Profit certificate of authenticity
In practice, NFT means that we have something unique that can become the property of another person only as a result of sale, voluntary donation or theft. As an example, let’s mention here: the original Mona Lisa painting, unique animations, Tweeter entries or 3D models of human body parts or even emotions! NFT gained popularity when people saw the potential in the digital art they owned. We have no problem with transferring photos, two-dimensional graphics to the material version. Animations, music videos, 3D models and any other multimedia are a bit more difficult for us. Transferring the above forms into material versions is sometimes impossible. We save NFT in the blockchain, which is a unique certificate thanks to which we can buy and sell works in a digital edition.
NFT cause the formation of conservative circles
It is worth noting that NFT became the genesis of orthodox and closed social groups. In the virtual world, we meet with tokens that are supposedly admission tickets. Their possession determines belonging to the aforementioned elite. Their members recognize each other by specific pictures – symbols they put on their social media profile pictures. This is to encourage other users to this affiliation. We will pay for such NFTs from several dozen to even millions of zlotys! We can buy them on dedicated exchanges. Before we make a purchase, we must consider:
• the market from which we plan to acquire NFTs;
• the type of digital wallet in which we will store the NFT;
• the type of cryptocurrency we will use for the purchase.
At the moment, we can buy the most NFT on the Ethereum (ETH) exchange. The process of investing in NFT is quite difficult, it requires experience and familiarity with cryptocurrencies. First of all, the desire for such investments requires us to set up several accounts and install a digital wallet application and the exchange we choose. Next, we need to link the accounts and transfer the necessary monetary value to them. All this so that we can buy part of the selected cryptocurrency, for which we will buy a token.
Let us note that some exchanges enforce the so-called gas fee. Its task is to compensate for the greenhouse gases emitted into the atmosphere, which are emitted during each stock exchange operation. The costs we have to incur can reach up to several hundred zlotys. If we want to sell NFT, we perform these operations analogously to its purchase, i.e. also on a specific exchange. The way the sales process will proceed depends on the choice of our platform. The sale of NFTs also takes place on the respective exchanges. The whole process can be very different depending on which platform we choose. We also need to provide your content and information so that we can turn it into NFT form. In addition, we will also usually be required to provide a description of the digital work, as well as a potential price.
How do we create NFT?
The entire process of creating NFT can be found on the exchange’s website. There, our digital works are transformed into tokens. The information is stored in the blockchain. For this process to take place at all, we need to create an account in the above-mentioned digital wallet and on a specific platform. Also, the right amount of cryptocurrency is necessary for this, so that we can finalize the whole process. The form of NFT is not defined, and the possibilities are many: from the more logical ones to the abstract ones. As far as ownership rights are concerned, this is a case-by-case issue for NFTs. You should also read the contracts carefully. Sometimes, with the purchase of a token, we have all the rights, including commercial ones, and we can use them in various ways.
We can, for example, print the image we bought on a T-shirt, sell it or use it in personal clips. We are likely to acquire rights to only one copy of a particular digital work. Only this element can be considered our property, while others are not. To illustrate this issue, let’s refer, for example, to buying a book or a movie on Blu-ray. We have the opportunity to sell, rent and fully use the purchased goods. However, we have no right to publish, for example, such a film on the web or sell it anywhere, or use its scenes or soundtrack for our own use. The exception is a quote and a footnote, which is legally allowed. To sum up, when it comes to NFT, we acquire basic ownership rights when the author of the original being a substitute in NFT transfers the copyright to the holder of NFT. Otherwise, such a purchase of NFT can be compared to the purchase of a numbered collector’s variant. Then we also have rights only to the given object, and not to the specific content contained in it.
