Understanding the NFT revolution

Over the past few months, the 3 letters you’ve heard the most if you’re a little interested in the world of cryptocurrencies, are NFTs.

These intangible digital works are revolutionizing the way you understand the deed of ownership. Who would have thought, just 1 year ago, that Crypto Punks, Bored Apes or Digital Comic Books would be able to sell several hundred thousand dollars as soon as they hit the market.

NFT stands for Non Fungible Token, non-fungible tokens for purists of the French language. Behind this somewhat barbaric acronym hides a world that is taking off, and that very soon will be essential. Regardless of whether we understand their interest or not, they are considered by many to be the new digital “Eldorado”. But how do NFTs work? What does it really offer? Will the trend surrounding these digital works and proliferating projects disrupt the dynamic? How to avoid making mistakes and investing in the right project? It is true that it is difficult to imagine that some people are ready to invest thousands of dollars in simple digital images. To fully understand, we need to go back to the functioning of the blockchain and the famous Smart Contracts, these famous Smart Contracts.

An NFT is a cryptocurrency that stores information on the blockchain. This information is:
– Transparent, anyone can look at it or access it
– Immutable, no one can change it
– Indisputable. Having validated the information entered, the Blockchain is irrefutable proof of its authenticity.
– Unique: there are no 2 identical NFTs, if only for their serial number.
– not replicable: it is not possible to copy an NFT. And taking a screenshot of your phone doesn’t count!
– Non-divisible: Although some works such as Gustav Klimt’s The Kiss were sold for 10,000 NFT, each NFT in this case represents a part of the original work.

The NFT is therefore a very useful element of the blockchain… but it is still necessary to derive something useful from it. Because for the moment it’s a bit of a rat race, and its use is going all over the place. Its use should not be limited to digital art. But the ease with which you can publish your NFT leaves too much room for smart kids to post photos or drawings far enough away from concept art or a real project.

One of the latest uploads is an NFT signed by McFly and Carlito, the well-known younger duo during a dice video with youtuber Squezzie. After the death of Hasheur, a cryptocurrency and blockchain specialist on Youtube and BFM Business, a very childish drawing was published and put up for sale on OpenSea, one of the largest NFT sales platforms. What saves this NFT entitled “West la Zone” is that it was put up for sale for the benefit of the Secours Populaire. But it shows that anyone can post an NFT, and with a buzz and an active social media community like Discord, it earns a lot of value, very quickly, without any real talent or purpose.

I’m not going to list the uninteresting projects that took on enormous value when they went online, but went even further on the other side, but there are plenty of them. As in any investment, and as I repeat in my training on www. potentialfinanza.com.

Bet on certain values

From my point of view, there are only projects that are based on safe values, which can last over time. The Veve platform got this right, since it only offers NFT on American and Japanese pop culture. Owning StarWars, Disney or even NFT of luxury brands like Givenchy gives more weight than a Pixelmon project, the latest failure of an (too?) Ambitious project. However, if used well, NFTs can, in the very short term, regulate and revolutionize the world of intellectual property and copyright. And I think the challenge lies here … and not in the random creation of digital art. The NFT allows you to manage the use of a work, and to remunerate its author (or its owner) for each of its uses. Revolutionary, right?

This is not the case today, but it can be fully integrated into the smart contract. As in any classic 2-party contract! The NFT therefore becomes more than a speculative tool, but an investment, which can make us earn money if used by others. The most frequent use of NFTs today is to join a very select club. Example: when you own a Bored Apes, you can get in exclusive contact with other owners. To remain in the artistic world, we will see the establishment of a business around derivative products in the coming months.

Thanks to the NFT it will be possible for artists, big events such as festivals or sporting events, to offer privileged accesses, bonuses … the singer Orelsan and the Belgian singer Angele, have recently offered 6 Golden Tickets, hidden in their albums for access to life all their concerts!

The resale market

It is quite feasible, thanks to NFTs, to do the same thing, digitally! It will also be possible thanks to NFTs to control the resale market. Event producers and organizers (again!), Are fighting against the resale of tickets for concerts or football matches at much higher prices. Thanks to NFTs, a percentage could be automatically redistributed to them or even give them the ability to control this resale, limiting the resale price, or even the number of times it is resold! Ditto for music or video games. Offer add-on song versions, exclusive bonuses, or even digital add-ons with NFT to extend product life. You understand, the options offered by NFTs are endless. Everything can be integrated into a smart contract.

But like any new market, derivatives and scams are devised to make money even faster. It is a pity, it poses even more reluctance and can delay its accession by the general public. According to a recent survey, just 8% of the French population has already invested in cryptocurrencies … the figure must be just 1% for NFTs. It is likely that the Metaverse projects initiated by the greats of the Silicone Valley will allow a rapid acceleration of their adoption. WAIT AND WATCH… but tomorrow’s (digital) world is already underway!

Arno Bitan

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