Good day, guys hope you all are having a wonderful day? Today I was inspired to make a post about NFT to enlighten you guys about it. I know that most of you guys must have heard of it, but just a few of you people know what it is all about. So today I will be addressing the topic on NFT, hope you guys enjoy it.
First and foremost the abbreviation NFT stands for Non-Fungible Token. And here the word fungible means “irreplaceable”. You’re starting to get it right? Fungible items or assets can also be exchanged because their worth qualifies them rather than their special properties. For example, assets like Bitcoin, Ethereum, or dollars are fungible because each of them are exchangeable for another and are also completely the same. A typical example of a non-fungible token is a piece of art. There is nothing like an original bitcoin or ethereum because there are all the same but in terms of a non-fungible token like a piece of art, they are of course the same piece of digital art but amongst all one is unique and that is the original of them all.
HISTORY OF NFT’S
One can say that colored coins are the first NFT’s to exist. The first mention of colored coins appears to have originated from a blog post in the early year of 2012 by Yoni Assia, the post was titled “bitcoin 2. X (a.k.a Colored bitcoin)-initial specs”. Colored coins are made up of little denominations of a bitcoin, they can be used to represent a lot of assets and can have various use cases like:
• Used as an access token.
• Used as coupons.
• Owning your cryptocurrency
• Possession of a property.
• Digital collectibles.
The downside of colored coins was they could only indicate certain values if everyone agreed on their worth. However, on the bright side, the creation of colored coins led lots of people to realize the massive outcome of including assets onto blockchains. 2018 and 2019 have been the year at which there was a massive growth in the NFT ecosystem, there are now lots of projects at hand. The trading volumes are coming up and are also growing at a fast rate. NFT ecosystem is becoming easier and great as wallets like Metamask and others continue to improve. NFT standards are now widely used (mostly on ethereum)
NFT has the potential of revolutionizing the world because of the way people value things.
People just create value in what doesn’t have inherent value, it has been going on in the world where a piece of unique art is possessed by a person and is kept in a museum, gallery, or a special place in one’s house. The only difference now is that the act of owning a unique art collection and owning unique things can be done digitally. The first-ever tweet on Twitter made by Jack Dorsey was purchased with the sum of $2,915,835.47, insane right? Also, a single Jpeg sold for $69,346,250 titled EVERYDAYS: THE FIRST 5000 DAYS created by Mike Winklemann, known professionally as Beeple, NBA are also selling little moments of basketball games for thousands of dollars. I know that a lot of people out there including some of you guys reading this post are asking why one should purchase any of these when they can just have access to them. Well, the reason is unknown to all except the purchasers. What I can just say is that human beings are just possessive in nature. So just like cryptocurrencies, non-fungible tokens can be traded.NFT's has various uses like:
Ownership of domain name: Blockchain domain NFT's provides easy trading also with the attribute of a customizable domain name.
Real Estate: NFT's has various applications for selling digital real estate in the real and virtual world, virtual real estate NFT's can be changed on NFT marketplaces with transactions that are more systematic than the real world's transactions, an example of a virtual real estate is the digital "Mars House", it represents a house framed in glass and enclosed by neon lights.
Logistics: They are very suitable because of their steadiness and clearness which keeps data reliable and authentic.
Identification and documentation : As NFT's contain a code with a special set of information they can be used in the identification of owners and also in the documentation of properties.
Possession of art, brands, sports scenes, and other monuments.
Finally, on the flip side of NFT, the technology that is the backbone of this relies on physical computers performing micro calculations every night and day, most NFT’s are stored on a blockchain called ethereum and as of early April of this year the ethereum blockchain was making use of 33 TWH of electricity and that is the same amount of electricity as the country of Serbia. Just to know that generating electricity comes from burning fossil fuels that put carbon into the atmosphere, the energy consumption of the ethereum blockchain just keeps on increasing without any sign of slowing down thereby leading to harmful effects like depletion in the ozone layer, acidic rain, ice melting leading to the increased water level that causes flooding.
In summary, one can take advantage by creating a non-fungible token and then selling it for personal gain, but also to bear in mind that if the problem of electricity consumption is not resolved in time to come it will create a lot of problems in time to come
Thank you @seo-boss @dobartim @steemchiller for this wonderful opportunity to have my first post here.