what are the famous non-fungible tokens used for?

A new technological concept that is creating a buzz, NFTs are mainly despised for the volatility of their value, the many scams that result from them and their presumed uselessness. Really?

Since 2021, it has been buzzword. NFT, for Non-fungible token, a non-fungible digital token, i.e. non-duplicate and completely unique. In December 2021, artist Pak sold his digital work The merger to the record $ 91.8 million on the online auction platform Nifty. In March 2021, Jack Dorsey, the founder of Twitter, sold his first message on the social network of NFT for the modest sum of $ 2.9 million. A year later, on April 6, 2022, its new owner, Sina Estavi, wanted to put it up for auction for $ 48 million. Alas, a week later the best deal was $ 280. To date, the best deal is 10.3 Ether, or just under $ 30,000. From this, it can be concluded that NFTs are only intended to capture pigeons that are attracted to speculation. But that would be a little too simple a shortcut.

NFTs are not just art

Granted, if we sum up NFTs as a pseudo-digital work of art sold at a gold price, the concept does not make much sense, but digging beneath the surface, the answer is different. Let’s go back to the original concept: Non Fungible Token. This digital token is therefore unique, but it can come in different forms. It is not necessarily a JPEG image. For example, it could just as well be a piece of music, a movie, an SMS, a GIF, an accessory in a video game, or even a piece of computer code.

A tennis player, Oleksandra Oliynykova, even sold an area of ​​her skin – 15 × 8 cm on her forearm – in NFT. An area where she has agreed to be tattooed or put on a temporary design at the choice of the new owner. This right to life, which can therefore be resold according to the NFT principle, is accompanied by two restrictions: no gambling or extremist excuse. NFT was sold for 3 ethers, equivalent to 5,900 euros during the sale.

© mundissima / Shutterstock

NFTs also promise to be crucial in the metaverse. They are already used in virtual worlds like The Sandbox or Decentraland, as proof of ownership of virtual land spaces. In November 2021, a plot of land from Decentraland was thus sold for the equivalent of 2.4 million dollars (2.3 million euros). The reason for this particularly high amount? This plot is located in “Fashion Street” in the meta-verse. A bit like a building on Avenue Montaigne in Paris had been sold at auction. This NFT therefore acts as an ownership. Unique in its location, all its characteristics (dimension, location in Decentraland) are registered in the blockchain.

NFTs, unique tokens that can contain a large amount of information

As is the case with this plot in Decentraland, we can imagine an NFT that will serve as a deed to a dwelling, in fact really, him. An NFT is neither more nor less than a digital file in which both a work of art and the exact characteristics of a luxury watch can be encapsulated (serial number, date of manufacture, materials used and their purchase, place of manufacture, name of the watchmaker who fitted it, etc.) . Same for real estate.

“CryptoPunks” is a collection of non-fungible tokens on the Ethereum blockchain.© Rokas Tenys / Shutterstock

An NFT could completely replace the notary deed. With the advantage of being able to access it anywhere, without the risk of it disappearing or being damaged by e.g. fire. Because once this file is registered in blockchain, NFT has its certificate of authenticity and becomes traceable by vitamin eternam. It will therefore be possible to see how many hands have passed the luxury watch, the house, the work of art, etc.

To invest or not in NFTs?

That is the question everyone is asking. If the goal is to get rich at the flick of a finger, it’s better to move on. As can be seen with the first tweet in the story, the volatility is such that the speculations are extremely high. By investing in NFTs, you automatically take the risk of not getting your investment back one day.

The approach, on the other hand, has its interest if you have a real interest in a work of art or a unique project. But all this must be taken with a pinch of salt. As Caroline Jurado (Les Cryptos de Caro) explains: “At this stage, there are far too many in all directions (…). I think this is something that will be very useful in the future, but also that it is worth waiting a bit for all the projects that are only for marketing fail to make it easier to identify future plans. “ You have been warned.

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