Non Fungible Tokens -How Art Finds Its Way onto the Blockchain

7 months ago

Non Fungible Tokens -How Art Finds Its Way onto the Blockchain

The latest craze are so-called NFTs. These are quite normal tokens that are predominantly issued on the Ethereum blockchain. The real special feature is that each of these tokens is unique. One can therefore speak of a digital unique specimen here. NFTs have created quite some controversy. After all, such a token may be unique, but what is associated with it is usually easy to duplicate. In today's article, let's venture into the world of NFTs and take a look at what the hype is all about.

Digital art becomes unique

When you buy an oil painting, the painting has very specific characteristics that make it a unique piece of art. You can try to copy such a piece, but ultimately the original has physical characteristics that cannot be copied. This includes the age of the paint, the canvas, and much more.

With a digital image, it's not quite so simple, because for the computer, it's a data set and it can be duplicated at will. This is where the NFTs come into play, because they are firmly associated with a very specific image. In this way, digital trading cards can also be assigned rarity value. In principle such a token could be associated with any object to certify its authenticity and identify the owner of the token as the owner of the object.

However, this method is best suited for digital goods, precisely because there is no other method that would be reliable.

Is it making sense?

The market for digital art and NFTs is flourishing. Small artists sell GIFs and 8-bit art for cryptocurrency and the buyer gets a copy and a token. Critics note that the image can be duplicated at will and that, accordingly, getting a one-time token to go with it is of no use at all.

The fact that NFTs are not directly linked to the ownership of an image stands in their way to some extent. Proponents of NFTs counter that argument, that there must be a way to make digital content unique and that NFTs are the expression of that uniqueness.

Apparently, this view is gaining traction because in an increasingly digitized world, any kind of content should also represent uniqueness. The fact that collectors are willing to spend hundreds of thousands of U.S. dollars to purchase a digital work of art with a token indicates that the trend has been established.

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