NFTs or the Non-Fungible Tokens came into the limelight after Jack Dorsey, the former CEO of Twitter, sold his first-ever tweet in the NFT marketplace for over $2.9 million. But, before that, very few people around the world were aware of these blockchain-based cryptographic assets.
However, to date, many people confuse these digital collectibles with cryptocurrencies. But it is to be noted that NFTs are not cryptocurrencies, as they can not be used as a medium for commercial transactions.
NFTs are the digitized form of any artwork, and the people interested in these artworks can buy them from NFT marketplaces.
“Quantum” First-Ever NFT Kevin McCoy, the first-rate digital artist, minted the very first NFT named “Quantum,” an octagon-shaped animation, on May 03, 2014. A few months ago, the artwork was sold for $7 million on Sotheby, an NFT marketplace.
Institutions and individuals, who are part of the NFT industry, currently, do not possess a proper resource to authenticate the originality of the digital collectibles. Both the creators as well as the buyers have to depend on traditional contract methods for the verification. But, this would end very soon.
REV3AL Technology is going to introduce a platform and solution that allows the creators, IP owners and collectors to integrate secure authentication into their work. This would be a first-of-its-kind Copyright Protection and Interactive Effects for NFTs and other Digital Assets.
Along with the time, several new NFTs were introduced into the market, but they never came into public awareness. In 2018, the crypto market experienced a downfall, which helped the NFTs slowly enter the mainstream market. Today, the global market for NFT has reached $22 billion.
After 2018, people started recognizing NFTs and are now trying to own them, but they are still skeptical, as there are some myths.
The biggest misconception among people is that NFTs are a kind of cryptocurrency, but this is not a fact. Both cryptocurrency and NFTs are developed on Blockchain, but the critical difference is FUNGIBILITY. Cryptos are fungible items, which means they only can be replaced by the same thing at the same value. In easy terms, ETH can only be exchanged with other ETH or another cryptocurrency with the same value. On the other hand, NFTs are non-fungible tokens; every item has its own unique value, therefore they can not be replaced by one another.
For quite a long time, it is believed that the introduction of NFTs is harmful to the environment because they use blockchain technology that utilizes Proof-of-Work (PoW) protocols. But the fact is, in today’s time, the NFTs are developed using blockchain technology which uses Proof-of-Stake (PoS) protocol. Moreover, compared to PoW, PoS is much more energy-efficient.
Another biggest misconception that people have regarding NFT is that it does not have any value. However, the NFTs offer a special power to their owner.
For instance, Gary Vee released his NFT collection in the market, and those who bought the collection got special offers like dinner with Vee, basketball games, or one-on-one calls with him. Every NFT has its power which its owner can only unlock.
As mentioned earlier, NFTs are built on Blockchain and each Blockchain has its NFT standards with compatible wallets and marketplace.
For instance, if an NFT is developed on the Ethereum blockchain, the developer could sell it on platforms that support Etheeum-based assets.
It is also being believed that anyone on the internet can take screenshots of NFT to sell it, but it is to be noted that no one can forge NFT.
The ownership of these items is recorded in a code set on the blockchain network, which makes it difficult for the people to go back to the network and later it.