Non-Fungible Token — a new way of controlling copyrights
Maxim Sotnikov
The world of cryptocurrency is multifaceted and full of mysteries. In one of our articles, we learned about digital coins, blockchain systems, ICO, tokens, and even Non-Fungible Token. Now let's dive deeper into the NFT topic: what is i, and what is it like inside out?
Non-Fungible Token a.k.a. NFT is a non-interchangeable token, which can be considered unique and one of a kind.
Using Non-Fungible Token in the field of art is one of the most recent topics on the agenda of the modern world. NFT has become a new form of securing copyrights of the work of art using blockchain technology, which allows you to establish unambiguous control over copyright and proprietary rights.
Each Non-Fungible Token is unique and not divisible. NFT is used to prove ownership of an object and cannot be replaced without the consent of the owner. Non-Fungible Tokens are converted into works of art such as books, magazines, paintings, music, films, as well as digital objects: games, characters, programs, applications, online publications, posts, tweets, domain names, financial instruments, loyalty cards.
In other words, any cryptocurrency, all digital coins and tokens are fungible, except for NFT! For example, one ETH can be exchanged for another Ethereum — and nothing will change. At the same time, one NFT cannot be replaced with another NFT, because each Non-Fungible Token is completely different and individual! For example, if one NFT represents the song of the Depeche Mode rock band, and the second Non-Fungible Token is assigned to the music track of Armin van Buuren, then obviously that these tokens are completely different and aren't identical in any way. Since each musical composition has its own special value.
In addition, the Non-Fungible Token cannot be counterfeited. This is why NFTs are so popular. Because nothing in the world secures the rights to unique works of art and digital objects in the way as the Non-Fungible Token does.
The first developments and pilot NFT projects began back in 2013 when it became possible to tokenize assets using the blockchain. Four years later, in 2017, it became popular to use Non-Fungible Token on the basis of Ethereum smart contracts. Analytical service Nonfungible stated that over the entire period of its existence, NFT has sold 5.35M tokens. Currently, Non-Fungible Token works in the Ethereum, NEO, EOS, Tron, Flow, Cosmos, WAX networks, on the basis of second-level solutions and sidechains. (Sidechain is an actively developing technology that allows tokens and other digital assets of one blockchain to be safely used in another blockchain, and then (if needed) they can be returned to the original blockchain — Startup Jedi).
Aggregators that are responsible for buying and selling NFT.
Unique protocols that provide production of Non-Fungible Tokens.
Specifically made marketplaces or eminent of the art works. Slowly but surely appear NFT-blogs, like Mirror. Also, marketplaces in the music industry are emerging — EulerBeats as an example.
NFT turnover in the world
As we said before, Non-Fungible Token is used for various artworks and different digital directions. Specifically: paintings, photos and different types of pictures, music and podcasts, radio and TV programs, textual publications, instructions, 3D products, external and internal game assets, club cards, Augmented Reality assets, cinematography, streams, show videos, IP-addresses, domains.
In such a way, all artists and their agents and producers can easily tokenize their projects on various platforms like OpenSea, Rarible, Nifty Gteway and SuperRare. What is more, on these platforms you can buy tokens from your colleagues or authors from other industries.
Non-Fungible Token attracts the attention of both programmers and collectors. They can now convert a unique piece of art or the latest cutting-edge technology to NFT in a reliable and easy way.
It is important to mention that absolutely different artists and even politicians are interested in Non-Fungible Token! Including Lindsay Lohan, Bernie Sanders, the Senator of Vermont State, the creator of memes and Nyan Cat animations, as well as artists and museum workers.
Publications, posts, tweets and animations, portraits of presidents and musical albums which are converted in NFT, are instantly collecting millions of dollars at auctions. Only during February 22, 2021, users spent more than $64M on NFT, and this isn't taking into account the expensive CryptoPunks lots (CryptoPunks is a collection of 10 000 digital avatars in the form of people, monkeys, aliens and other creatures, created in the form of NFT. The most expensive token from the collection was previously sold for $7.6M — Startup Jedi), which were sold for 90–400ETH, and the rarest ones were sold for 4200ETH. In addition, from February 4 till March 4, 2021 the traded value of Non-Fungible Token on the 12 biggest platforms set the record point of $480M.
3LAU DJ is the first musician, who has successfully tokenized his album and sold his limited edition creation. Eventually, he earned $11.6M.
The singer Grimes (the mother of Elon Musk's child) and her brother created 4 paintings and converted them into the NFT. It needed only a few minutes to sell 400 Non-Fungible Tokens. They earned $5.8M.
Recently, Kings of Leon, an American rock band, planned to release the eighth studio album «When You See Yourself» in NFT. It was reported by Rolling Stone Magazine.
In addition, there are already record prices in the entire history of cryptocurrencies that have hit the world. On March 11, 2021, the British auction house Christie's sold the tokenized work of Mike Winkelmann, also known under the pseudonym Beeple, for $69.3M!
Jack Dorsey, the founder of Twitter, has sold his first tweet for $2.9M in NFT.
On March 26, 2021, the world's first Non-Fungible Token was sold by a humanoid robot with artificial intelligence. The non-fungible token, which is tied to the drawing of the humanoid robot Sophia, was auctioned for $688 000.
«The State Hermitage Museum» — The Museum of Fine and Decorative-Applied Arts, which is located in the city of Saint Petersburg, in March 2021, announced plans to hold the first in Russia exhibition of works performed in the NFT format. The event will be held within the framework of the "Hermitage 20/21" project. The department of contemporary art of the museum is working on the organization of the exhibition. The exact date of the exhibition has not yet been announced. Aksenov Family Foundation will be the strategic partner of the project.
The American weekly magazine Time has sold three of its covers as a Non-Fungible Token on SuperRare. The maximum bid per lot reached 22 Ethereum, which was equal to $36 900. Immediately after the opening of the auction, Time posted a vacancy on LinkedIn to find a new CFO. In addition to the standard duties for the position, the magazine included a point of "comfortable work with cryptocurrency".
And the most sensational news of the beginning of this year! For the first time in the world, Banksy's "Morons (White)" was converted to Non-Fungible Token and burned. Injective Protocol company acquired the artist's work from Taglialatella Gallery for $95 000. Turning a physical work of art into a virtual asset is a precedent!
In the second half of February 2021, the user base of the NBA TopShot NFT marketplace with basketball-themed cards increased dramatically, — more than 45 000 users visited the platform on February 16 and 22.
ПЛАШКА Future of NFT
As the film industry and photographers moved from film to digital, the same way now various services and valuable documentation, training and work, art and musical works are rapidly moving into digital. We have witnessed a new history, the development of the cryptocurrency market, which is gaining momentum more and more every year. NFT is already influencing art-creators and programmers, changing business models and rebuilding companies, as well as providing a comfortable and safe interaction with consumers.
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