NON-FUNGIBLE TOKENS (NFTs) – A NEW MARKET PLACE!
What would be the digital assets of the future and how easily the marketplace would operate very successfully without a third party has already started showing up in a big way. The assets can only be called bizarre from the traditional asset point of view and it would still take some time for the world to follow suit. The first movers as in any tech change have started making their windfall. So, to say non assets have become assets. The NFT marketplaces are already up and running and amongst the biggest ones are OpenSea, Rarible, CryptoSlam, SuperRare etc. Art is the clear leader but with it any digital collectable, a non-convertible one.
What you buy is a digital file; animations, images, text, tweets, audio etc. You can simply download and effectively have the same file as the ones sold for millions of dollars. What is NFT then? ”A non-fungible token is a unique and non-interchangeable datum stored on a digital ledger (blockchain).” This being the defining factor, what do the buyers of art actually buy? In a very simple language, they buy traceability, which leads to social prestige. Nearly the same logic applies to all the other collectables being sold or auctioned as NFT marketplaces.
The specialists determine the originality of physical assets, all the Sotheby’s credentials mapping is done, with the NFTs it is automatically done by smart contracts contained in the blockchain. These smart contracts mint a piece of media known as Non-Fungible Token, popularly known as NFTs. What is the ultimate deliverable and the journey? ”Digital media is thus reborn and begins its journey on a blockchain” – a decentralized ledger that is incorruptible, unfalsifiable, and indestructible. This is the solidity of the NFT revolution. NFT marketplaces in real tech understanding of things are just some of Ethereum’s dApps and they allow you to create, sell and buy NFTs.
Two recent examples would make real world use cases and scenarios very clear to you. Jack Dorsey’s first ever tweet was sold for $2.9 million. Closer home Amitabh Bachchan’s NFT collection hit highest ever bidding in India on day one of the auction. Day 1 bidding for Bachchan’s Madhushala NFT collection received a bidding of $4,20,000. The other group of collectables of autographed posters etc. was bid for $1,00,000. Blockchain transformed the internet of information to the internet of value, and is consistently changing the meaning of value in the digital world and the multifarious dimensions it can take. It may turn out to be more momentous than the internet itself. Digital asset as class has finally found its place in the sun.
A DIGITAL ASSET NEEDS NO PHYSICAL CREDIBILITY VERIFICATION, IT NOW STANDS ON ITS OWN FEET.