The Rise of NFT’s (Non fungible tokens) by Kay Hare
The Rise of NFT’s
by Kay Hare
The Bitcoin industry is booming, and this usually brings on a domino effect as offshoots of crypto mining get noticed. One of the developments of this asset class is bringing the rise of NFT’s (non-fungible tokens). NFT’s have been first created with the internet and slowly morphed into their own identity. NFT’s are units of data stored on a blockchain that represents a unique digital item such as art.
I always draw my ideas first in pen and ink, and then somehow, this gets absorbed in the subconscious and turns itself into an oil painting. It’s a process not unlike Bitcoin, being a process in cyberspace. A space that we can’t see is creating digital tokens.
The rise of NFT’s in 2021 ©kayhare
Bitcoin is decentralized, meaning it has no controlling body, and therein lies the beauty of direct trading without any middle man. NFT’s are built and programmed on smart contracts, which are contracts for digital assets. Unlike Bitcoin, there are fees associated with creating an NFT as they are regulated from a centralized server. These fees are called gas.
NFT’s can be photographs, videos, art, or music and act as cyber-like copyright. Instead of owning a piece of art physically to hang on your wall, the art is owned digitally by you. Proof of ownership can be through an ethereum (ETH) purchase. NFT’s can be bought and sold at any time, and the highest bidder wins.
Buying NFT’s is an easy process once you hold ethereum, which someone can purchase from a myriad of exchanges, Coinbase being very easy to use and offer a wallet service. It is worth considering that some Bitcoin platforms will not sell ethereum, the primary payment method for NFT’s. Many platforms sell NFT’s for example, Opensea is very popular, as well as Rarible and MIntable.
Many photographers, in particular, find NFT’s a fantastic tool to sell their work as it is already in digital form. NFT’s allow a quick and straightforward transfer to take place, often saving money on bank transfers and cutting costs with marketing. It also allows the seller to enter into a transparent dialogue of previous sales and transactions, allowing, if necessary, for the resale of the artwork or and private exchange. As the NFT process is digital, everything is noted from the time of creation, the sale process, and no fear of damage to the product. The anonymity of the ownership is private, which allows for a direct conversation if necessary with the seller. The artist can also sell their works at a price that only considers the gas fees and perhaps the hosting platform’s fees. It offers artists a great deal of freedom from agents who demand hefty commissions and bypass art galleries that often have to consider their rental fees and marketing costs.
The rise of NFT’s is only starting to bloom, but many celebrities are buying works from artists, and well-known musicians such as Kings of Leon are creating album covers as NFT’s. The process is straightforward once you have the ethereum bought and a wallet, and day by day, the techniques and variety of platforms on offer are growing. The technology behind NFT’s is becoming more sophisticated as the market grows, and many artists are embracing the idea. The other reason to wake up to the NFT market is the digital rendition of the Nyan Cat meme 2011 artwork sold for $590.000.
The rise of nft’s ©kayhare
I like the idea of NFT’s as it is a greener way of purchasing art. There are no transport or expensive printing costs. The whole cryptocurrency of mining runs off electricity, but many companies such as Argo blockchain deliver cheap, green hydroelectric energy sources.
“Addressing climate change is a priority for Argo and partnering with DMG to create the first ‘green’ Bitcoin mining pool is an important step towards protecting our planet now and for generations to come. We are hopeful other companies within the Bitcoin mining industry follow in our footsteps to demonstrate broader climate consciousness.” CEO Peter Wall Argo.
The Bitcoin cryptocurrency community wants nothing more than to create a ‘greener’ way of mining, and it is only through the demand that new ideas for eco-energy will be sought. The combined need for a better, fairer currency and the many opportunities derived from this, such as NFT’s and new financial benefits, will accelerate a cleaner, greener way of producing electricity.