What is NFT ?
Internet brought in the concept of sending a copy data from point A to B. Blockchain has bought the concept of sending only one set of unique value or item from point A to point B where there no different copy exists. We are moving from sending information to sending an asset in this transitive period.
NFTs are digital certificates that authenticate a claim of ownership to an asset, and allow it to be transferred or sold. The ownership and certificates are secured with blockchain technology similar to what constructs Bitcoin and other cryptocurrencies. A blockchain is a decentralized alternative to a central database.
Blockchains store an irrefutable encrypted transaction ledger which is replicated across a network of online machines that prevent tampering or disputing ownership. This makes them useful for vital record keeping.
The key difference between NFTs and cryptocurrencies is that cryptos allow ‘fungible trade’, i.e you can exchange 1 BTC with equal value of another 1 BTC but NFTs are by definition ‘non-fungible’ that they exist as one and solely one copy of itself on the ledger.
You can track an asset from its mint to its ownership to n number of owners among its journey.
Its an image copy or asset copy ?
You may ask this question why do buyers are paying millions for just a piece of an image anyone can copy it ? Ofcourse yes ? Don’t we have this same argument for physical art -
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Starry Night
Technology makes it easy to reproduce to perfection the most outstanding and beautiful works of art ever produced. To put this in perspective, AI can reproduce for you as an illustration of Van Gogh’s Irises painting to the right. What’s the value of that image on your screen right now? Not even a penny. What’s the value of the original hanging on the wall of an art gallery? (Approx $53.9 Million in 1987 – the last time it sold). There are billionaires ready to buy this for $1 Billion.
So that hanging on the wall part is nothing but displaying your ownership by inviting someone to your house may be the same is now digitally achievable and verifiable via blockchain. Just show the ownership on chain for the unique NFT piece created.
How Are NFTs Being Used Today?
Popular music producer 3LAU amassed $11.6 million on an NFT auction around his latest album. The top bidder received a custom song created by 3LAU, an NFT for each track on the album, unreleased music, and even a physical copy on vinyl.
‘NBA Top Shot’ sells NBA player highlights, trading cards, digital artwork, and more. Customers have generated the company over $330 million as of early 2021. With highlight reels of LeBron James going for nearly $200,000.
The famous crypto collectible game,CryptoKitties, Axie Infinity, allows users to buy unique digital cats/axies and breed them on the blockchain. One of the most expensive CryptoKitties ever sold [was worth approximately $170,000.] And recently one land on Axie was sold for $1.5 Million
Why I am saying all these is that we are bringing similar project call Beezu - NFT Battles on xDAI with a swarm of like minded developers, artists and contributors within 1hive community members and the project is ongoing and launching such new per NFT pets which will be breedable, playable and earn money by playing and staking soon. Join the Discord and keep your ears open in 1hive discords for kick start of project to mainnet soon.