NFT - Do you have anything non-fungible at home to sell?

Do you have anything nft at home to sell



In a very short time, NFT has become a trend expression. Whatever NFT stands, the market for them seems to live red hot and prices are rising rapidly. As usual, during such a boom, new players are entering the market at a high rate: artists, business leaders, and musicians.


But what exactly is an NFT, how do they work, and why in the world do people want them? Digital keet does its best to sort out the concept around a concept and a market that many do not understand.


Terminology

To explain what Non Fungible Tokens exist and how they work, it is best to start by explaining what the word Fungible lives and means. A product that is fungible is basically interchangeable with something else of a given value. This collection of goods includes, for example, coins and other standardized valuables that can stand exchanged at markets for some others. A twenty with Astrid Lindgren on is worth just 20 euros over and over again and you can, for example, exchange it for two tens, or the equivalent of a large chocolate cake.


Non-fungal goods symbols


 are goods that, on contrary, are so unique from any equivalent of the same kind. Let us exemplify: What is the Mona Lisa really worth and could you easily exchange it for another equivalent item? No, probably not. The Mona Lisa is unique and its price is simply determined by what someone is willing to pay, not by a formalized pricing.


We are well acquainted with the concept of non-fungal goods in analogous contexts. We all know that unique works of art are sold, that people want possessions that belong to famous people, that people want to own the original recordings of famous music et cetera. We understand the concept of owning something unique - even if a reproduction looks exactly the same. The Louvre prides itself on the original Mona Lisa and the value of the painting is not diminished by the fact that it is actually possible to buy all kinds of very good reproductions, which means that even a modestly paid library employee can have a copy hanging on their outdoor toilet by the summer cottage. So non-fungal goods are not really strange.


What we are not used to, and previously had no opportunity to really trade with, are digital non-fungal goods - so-called NFT. So what are these goods? Yes, a common commodity is digital resources from games. For example, if someone spent many long hours playing a character at a high level, they could sell it as an NFT. Other common NFTs are visual art in various forms (including gifs and memes that we have written about at Digiteket before) and it is about music and individual songs. not end there. Since everything on the internet is digital, Non-Fungible Tokenscan stands for pretty much anything: a vital email, an Instagram photo, a name domain...

 Recently, the media reported that Twitter's founder sold the world's first tweet as the Non Fungible Tokens.


Rights registered with blockchains


The essence is that something that is numerical unlike something that is analog, can very easily be copied to get an identical copy. 


What's the point of owning a digital image that already has thousands of exact copies online and that anyone can make new copies of over and over again? More importantly, how do you know your image is original - if all copies are exactly the same? 


Blockchain technology is used in the same way as in many cryptocurrencies to keep track of this. In short: a system with encrypted and decentralized registers that all users jointly and continuously update in connection with each transaction to keep track of who owns what. In this way, it will always be clear who owns which digital resource and this also makes "counterfeits" impossible. This is also something that counts as one of the long-term benefits of the new technology, in addition to the digital boom that is going on right now. Above all, the concept of a decentralized, encrypted archive for right is an idea that is now also beginning to attract people who do not engage in digital ownership. In many cases, different types of ownership (eg land and property ownership) are registered through authorities, and the idea of decentralizing/privatizing such systems appeals to many. 


Decentralized systems increase security against attacks and mean that we do not have to rely on a central authority to make things work. In many cases, different types of ownership (eg land and property ownership) are registered through authorities, and the idea of decentralizing/privatizing such systems appeals to many. Decentralized systems increase security against attacks and mean that we do not have to rely on a central authority to make things work. In many cases, other styles of ownership (eg land and parcel rights) are registered through authorities, and the vision of decentralizing/privatizing such systems appeals to many. Decentralized systems increase security against attacks and mean that we do not have to rely on a central authority to make things work.


The non-intuitive with NFT

In this situation, most things with NFT may still feel quite tangible, but then we have not yet talked about copyright. NFT does not include any copyright unless the seller explicitly specifies it. An artist who has created a digital original can thus sell this as an NFT and at the same time retain the copyright to the original sold. 

The buyer can thus not use his original and sell the right to use the image/art/piece of music in any form of an advertising campaign. Only a copyright proprietor can do this. 

So the buyer has not received anything unique - for digital aids can exist replicated exactly. The buyer also does not contain the right to function they believe it keeps the copyright holder. What they actually own are digital bragging rights that say they own the first digital copy.


 Let us think of this as a very precise digital provenance. A technology journalist compared it to autographed football cards. Although there are hundreds of thousands of cards with Cristiano Ronaldo on them, the card that has his signature on it is worth more than its peers. Comparison is somewhat lame, but thinking of NFT as autographed digital copies still help a bit along the way. Another parable that may also help is to think of an NFT as a digital trading card that gets its value precisely by being unique.

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