How NFTs are shaking up the way we purchase collectibles and valuables
Tech entrepreneur and Twitter CEO Jack Dorsey put his tweet-- the first-ever tweet to appear on Twitter--up for bidding. It stood at $2.5 million as of last week.
Socialite and entrepreneur Paris Hilton auctioned a drawing of her cat amounting to $17,000 without handing the 'actual' illustration to the winning bidder.
American artist Mike Winkelmann a.k.a. Beeple sold his artwork for $70 million with the buyer not having to carry or drag the prized creation out of the auction house.
All these examples share a common denominator. These items were auctioned off in digital format, meaning no actual objects switched hands during the transactions.
But how is that even possible?
Welcome to the ultra-modern (and perplexing) world of non-fungible token or NFT.
So, what is NFT or non-fungible token?
An NFT is a digital file whose unique identity and ownership are verified on a blockchain. A blockchain is a system of recording information that is secure and difficult to change, hack, or compromise the system.
NFTs are non-interchangeable and not currencies and are treated more like memorabilia yet in digital format.
Rising phenomenon
The NFT is the current rising star in the ever-evolving world of digital technology.
With more and more people spending and transacting online, NFTs and auctioning digital valuables have become a reality and a feasible tool for sellers, collectors, and philanthropists to do their trades.
In the case of Winkelmann, his digital artwork named "The First 5,000 Days" -- a collage composed of 5,000 individual images -- became the first NFT item to be carried by Christie's, the popular U.K. auction house that is one of the go-to venues for ardent art collectors from around the globe.
Now, even music artists are jumping on the NFT train by utilizing it to get new releases across to fans and more people.
The rock band Kings of Leon and DJ Steve Aoki have launched music in NFT format and have reportedly earned handsomely as a result.
Here in the Philippines, there are already individuals and groups engaging in NFT either as buyers, sellers, or mere spectators.
“NFTs are the single biggest reorientation of power and control back into the hands of the artist basically since the Renaissance and the printing press,” London-based artist Robert Alice told Forbes.
“It appeals to people who have built up their own audiences -- maybe on social media -- to go and sell work directly to their audience.”
Some, however, asked the public for restraint and not to join the craze, at least at the moment as most of us are still wrapping our heads around this new digital phenomenon.
There are, of course, questions of safety and how do you exactly gauge the true value of digital art or token in the first place?
“The important thing to understand about the NFT market is it's very new,” L'Atellier's Nadya Ivanova told Forbes.
“And we're still going through different cycles that are establishing what is the real value of something.”
