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The differences between Web 2.0 and Web 3.0
The future of the internet
Understanding the potential of Web 3.0
Non-fungible token (NFT)
- In economics, a fungible asset is like money - it is something with units that can be interchanged. With money, a $10 can be exchanged for two $5, and it still has the same value.
- If something is non-fungible, it has unique properties and cannot be interchanged with something else, such as a house, the Mona Lisa painting, etc. Non-fungible is a fancy word for unique
- NFTs are distinct assets in the digital world. They can be bought and sold like any other property, but they have no tangible form.
- The digital tokens are like certificates of ownership for virtual or physical assets.
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How NFTs work
Traditional art is valuable because they are unique. But digital files can be duplicated.
With NFTs, artwork can be "tokenised" - a digital certificate of ownership that can be bought and sold. A record of who owns what is stored on a shared ledger known as a blockchain.Â
NFTs are unique digital tokens cryptographically sealed on a blockchain, and valuable within its ecosystem.
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NFTs can be compared to autographed work
Nothing is stopping people from copying digital art. But the buyer of the NFT owns a "token" that proves they own the "original" work.
People are paying millions of dollars for tokens.
- On 19 February, an animated Gif of Nyan Cat sold for over $500,000.
- Weeks later, musician Grimes sold some of her digital art for over $6m.
- Twitter's founder promoted an NFT of the first-ever tweet. Bids are hitting $2.5m.
- Christie sold an NFT by digital artist Beeple for $69m.
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NTFs: Many are sceptical
Beeple (Mike Winkelmann) thinks there will be a bubble.
People selling the NFTs are "crypto-grifters", David Gerard, author of Attack of the 50-foot Blockchain, said. While some artists are doing great on this stuff, most people probably won't.
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CURATED BY
"Making money is art and working is art and good business is the best art." ~ Andy Warhol
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