Note: NFTs are more than just digital art

Unprecedented tokens, called “NFTs” for short, have attracted a lot of attention in the last few months. Many brands are entering the world of NFT, from Givenchy, a French luxury goods company to the National Basketball Association (NBA). Their adoption this year was so widespread that even Collins’ Dictionary chose the term as “Word of 2021.”

Following is a note from Mitch Liu, CEO of Theta Labs and founder of Theta Network, one of the most successful digital currency projects in recent years. In this note, Liu examines criticisms of the nature of NFT and tries to explain the applications of digital property to an audience unfamiliar with the field.

In the last 30 days, nine of the top 10 sales in the NFT market belonged to Bored Ape Yacht Club and Cryptopunks, which shows that the huge NFT market has not yet attracted public attention. As a result, the mere fact that many have turned their attention to NFT does not mean that people have fully embraced it.

If you’ve heard of NFTs in the news, they’ve probably been linked to the ipat Club or Cryptopunks board Suite. Last year, 101 NFT kits for the ipat Club sold for $ 24 million and a cryptocurrency sold for just over $ 12 million at Sotheby’s. Despite the countless NFT projects launched daily, there are still some old, well-established tokens on the market that add value over time.

Many media outlets refer to the NFT as an asset to make the rich richer, and as digital spells that encourage celebrities such as Jimmy Fallon, Post Malone, and Eminem to pursue the field. In other words, when a certain form of asset is introduced to the market, these people rely solely on this forecast to predict that their prices will rise in the future and therefore invest in them. This may be a disadvantage for NFT, but there are other reasons for opposition. Many people see no reason to pay attention to incomparable tokens and believe that using these tokens is essentially pointless. Of course, this theory is completely wrong and can be rejected.

It is not difficult to understand why people outside of digital currencies continue to have difficulty understanding the concept of ‘incomparable’ digital assets. Many people who have ever right-clicked to download a photo or video and used the “Save As” option find this form of digital ownership strange.

Thus, the coverage of NFT news in non-digital currency media often discredits them; But this is not necessarily true. The technology behind NFT is innovative and has huge potential for use in many areas. NFT allows gamers to own and resell assets in video games, allows individuals to register full or partial ownership of physical assets, and distribute remuneration more equitably for works of art, such as music; But there are other applications to this emerging concept of digital property.

The idea that code can capture the uniqueness, originality and origins of a home, virtual character or piece of music in a decentralized, open and secure way is a great idea. Innovators will certainly use this potential for long periods of time. Many companies go beyond this and use it in the real world, adding new features to unmatched tokens. They use unmatched tokens in providing membership fees for various collections, which provide current value to the owners of a particular NFT.

Advanced technologies usually do not require high value tokens. TheDDrop NFT, for example, is working with celebrities such as Samsung, Katy Perry and Dionne Warwick to make their NFT more valuable. The purpose of these collaborations is to enable unique tokens to be useful in the real world or, as members of the digital currency community call them, as a “practical” token.

Also read: a lesson on building NFT; How to sell our unique tokens?

Contrary to some critics, this does not mean that idolatrous symbols that do not have this use are useless. The value of a work of art should not be underestimated, because it has nothing but an artistic theme or a different community in which these works appear. The value of NFT for projects like Cryptopunx that users buy to put on their social media accounts should not be underestimated. Just like the currencies we use every day, many people agree that NFTs are valuable; This is how they become valuable. If a community of collectors and enthusiasts wants to support an NFT project because of its visual appeal and shared values, this support is considered rewarding.

Widespread adoption of NFT faces challenges, one of which is climate change. However, one of the encouraging developments is the increase in the scope and number of projects that not only produce carbon pollution but also reduce carbon emissions. Proof of Stake protocols, such as Theta, use less than 1% of the energy required for such a transaction in Proof of Work protocols, which reduces most environmental concerns about NFT. NFT manufacturers and customers are aware of the concerns and this is a good thing.

People sometimes ignore the news, and in some cases this is due to a lack of proper understanding of technology. If so, the digital currency community deserves some blame. Activists in the digital currency community are often too isolated and reluctant to explain events in this area to people outside space. Sometimes this is for personal gain, and in some cases it is simply because it is often very difficult to explain. Many reporters outside of the digital currency space can also do better by explaining more clearly the potential of this technology.

Probably NFT will become so common one day that the term itself (proverbial sign) may no longer be as relevant as it is today. Instead, we will talk about the property and technology behind it.

Publication Note: NFTs are more than just digital art, they first appeared in Digital Currency.

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