NFT is a new phenomenon in the digital world. Part 2

Masterpieces not for a museum

We continue to talk about special tokens, their interaction with the outside world.

In art

Let’s talk about NFT technologies within the framework of “classic” art and digital art.
We have already said that with the help of NFT tokens, you can become the owner of digitized works of art. For example, to become a full-fledged owner or co-owner in the virtual space of a digitized version of a famous painting — say, the famous Malevich “Square”.

Upon completion of the transaction, the token will contain information about whether you acquired the right to own the painting, as well as the amount you paid. This information will be visible to all other users, thus this digital certificate will demonstrate that the right to own the work of art is assigned to you. In this way, you can purchase audio and video materials.

A prime example is the sale of a painting by Banksy — Morons (White). The canvas was bought by the Injective Protocol company, after which it was digitized, and the original was publicly burned. A token was attached to the digitized picture, which contained information about the owner (Injective Protocol), as well as the fact that the canvas now exists only in digital format, and only the company can dispose of it.

With the help of NFT, you can also support your favorite artist by purchasing the right to use his creation. You pay and you use, and the artist makes a profit.

Art does not stand still. Today we can observe the transition of art to Digital — the so-called NFT art or Crypto art, which exists only on the Internet and does not have its own physical form.

It is difficult to name the diverse offerings of the crypto art market so far. It is mainly represented by paintings, photographs. For example, a contemporary artist from Russia Pokras Lampas. The artist is engaged in the creation of his works in the “classic” version — on canvases and surfaces, but also in digital format. Alternatively, he translates ready-made works into an electronic version and sells them using NFT.

Little by little, representatives of the music industry are entering the market. Popular artist originally from Canada The Weeknd sold his unreleased song at an NFT auction for $ 2 million. Any fan of The Weeknd will envy the uniqueness of owning this disc — it will never be released on any digital platform, and the one-of-a-kind ownership right belongs to a happy buyer.

A new round, reasons for shopping

The development of NFT technology can certainly be called a new round of development in art. The rise in popularity in technology has allowed digital artists to monetize their work, rather than making rare orders for their artwork.

NFT makes it possible to digitize your unique virtual works by assigning your unique code to them. So now the original of any work will never be confused with hundreds of copies on the Internet.

Tokens cost a lot of money, especially if you buy a single digital product or want to be the sole owner of it.

Why is NFT in demand?

  1. technology provides an opportunity to become the sole owner of any object in digital form, as well as to claim ownership of it
  2. sponsorship of a new, growing industry. Be among the first to invest in an interesting modern concept
  3. NFTs have great potential not only for the field of art, but for any material-virtual model
  4. creation of new creative associations and communities

Virtual universes

Digital universes as a technological concept are a large virtual space, which is built on the basis of the reproduction of our universe, but with all kinds of additions. Meta universes create a sense of presence in real time, as well as the effect of social interaction: all kinds of events, galleries, festivals, parties, communication with people.

Virtual universes are the ecosystems of the future. The main difference from universes in games is that in games the creation of new elements, innovations and modernization is the work of the game developers, while the construction of the meta universe is concentrated in the hands of all participants and each individually. Users create events, add their virtual objects and digital products paid for with cryptocurrency.

The essence of such formations is to ensure economic and social interaction between all users. Today, such universes are actively developing, the economy is being integrated into them. For example, you can create an architectural object, tokenize it and put it up for sale on various cryptocurrency marketplaces.

Now NFT technologies of virtual universes are working to give reality to such worlds: an understandable and working economy, as well as a sense of all users’ belonging to one large virtual universe, a sense of owning real property.

The largest projects of virtual universes:
Decentraland is the most popular metaverse powered by smart contracts and assets. The universe has its own cryptocurrency MANA, which allows Decentraland to be a highly autonomous platform, as well as to carry out various financial transactions and initiatives.

Cryptovoxels is a virtual universe powered by the Ethereum blockchain aimed at art. Users can buy land, build architectural objects on it: from shops to their own galleries.

In Somnium Space, users can purchase land and dispose of it as they please: sell, build on it, etc. There are no restrictions for buildings, you can make any of your dreams come true: schools, shopping centers, art spaces, theaters and bars.

Collecting

You can collect anything on NFT: photographs, paintings, music, videos, memes, as well as objects from virtual universes. You can buy for yourself or for the subsequent sale of exhibits at a cost higher than they were purchased.

It should be noted that there are disadvantages for NFT collectors:

  1. complicated procedure for market expertise. In order to successfully and safely invest in NFT items, it is simply necessary to conduct expertise in the area of ​​collecting in which you are going to invest. It is important either to delve into this issue yourself and conduct analytics, or to attract appropriate experts.
  2. low liquidity of collectible items. For investments in general, the factor of liquidity of the object in which they are going to invest is important. All items presented in the NFT sphere are in demand only in narrow circles of connoisseurs or the same investors.
  3. sufficiently high threshold for entering the market. Collectibles and art objects from famous authors in the markets can reach tens and hundreds of thousands of dollars.

It can be concluded that investing in collectible NFT items and works of art can generate significant income today.

However, it is important to understand that in order to search for and make profitable investments without damage and losses in this direction, it is necessary either to attract professionals in this area, or to study this issue from all sides and be able to conduct analytics yourself.

NFT technologies allow you to digitize any product and make interaction with it more convenient — ownership, purchase, sale, confirmation of its originality. Tokenization adds exclusivity and value to the product.

It is impossible to deny the fact that this phenomenon has already revolutionized the art and world of games. In addition, NFTs can make a real reboot in the area of ​​copyright control.

Keep for updates.

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NFT is a new phenomenon in the digital world. Part 2 was originally published in DataDrivenInvestor on Medium, where people are continuing the conversation by highlighting and responding to this story.