4 things to know about ‘NFT’, the technology behind the sale of a $ 69 million digital artwork

Artwork, tweets, video game characters or even sports video sequences … The shopping seems endless with NFTs, Iis non-fungible tokens (non-fungible tokens, in French) Where spooky, as experienced users say. Thursday, March 11, a completely digital work by American artist Beeple, Weekdays: The first 5000 days, was sold for $ 69.3 million using this technology that works with cryptocurrency. What is hidden behind these three letters? Franceinfo gives you four ways to answer this question.

1“NFTs” are unique digital “tokens”

Born in 2017 non-fungible tokens can be compared to “tokens”, or digital assets that have a certain value. They are supported by storage technology, a blockchain, which makes it possible to store and transfer information transparently and securely. The one behind NFT are here blockchain Ethereum, which works with its own cryptocurrency, Ether.

If more than one token type – tokens – exists like social tokens giving creators and influencers the opportunity to monetize their audiences and reward their subscribers, NFT have the special thing about being unique. Every smart has its own identity, authenticity and traceability.

That NFT allows you to purchase all types of goods, whether real or virtual, on dedicated platforms such as Nifty Gateway, which specializes in art. There are also platforms that are specific to the used market, such as OpenSea or RareBits.

2They are popular for purchases in the arts, video games and sports

This uniqueness makes it possible to transform into NFT any work of art, tweet, video game character or sports video sequence at all and to organize auctions. Thus, Jack Dorsey, the head of Twitter, recently sold his first tweet, published in 2006, during auctions that rose to more than $ 2 million. Canadian singer Grimes has sold nearly $ 6 million of her digital art collection, called WarNymph, with each piece certified by a NFT. Without forgetting the artist Beeple, whose sale of his work Weekdays: The first 5000 days hit a record high in digital art sales on Thursday.

These tokens are also experiencing some success in the world of sports. The NBA Top Shot platform, still unavailable in France, offers its 200,000 subscribers the ability to collect and exchange action videos from a basketball game using NFTs, detailed The world. In France, Sorare, a digital platform dedicated to football, will soon be offering collectors digital “fantasy football” cards. Each, produced in a limited edition, will be associated with one NFTdetails The Digital Factory.

Another area is finally opening up to NFTs: video games. “One of the most suitable games for this is definitely Pokémon, where each pocket monster already has its more or less unique peculiarities. Integrating the principle of NFTs into Nintendo’s license can revolutionize the principle of the game by making each real unique being “, predicts Manuel Castejon, editor-in-chief of Frandroid.

3His certificate of ownership is worth gold

But why buy a video sequence, a tweet or even a song when they are freely available on the internet and can be copied indefinitely? Because the original file of the dematerialized object has, thanks NFT, a certificate of ownership that makes it unique. This proves that you are the owner.

Besides the monetary value is the fortune of one NFT is based on all the information in its certificate: the traceability of the owner, the creator, the date of creation and the history of all the transactions are hard-coded in blockchain.

Arnie, a French foreigner in Australia, tells World how a card sent by French basketball player Rudy Gobert rose in value to be estimated at around $ 500 today: “What’s cool is not so much the monetary aspect, it’s the fact that it’s offered by Rudy Gobert. This gesture is certified by blockchain, it is rooted in life, and from my point of view it is the one that has the greatest value. It’s like an autograph. “

4The “NFT” market is in full speculative expansion

In 2020, more than $ 250 million was traded in the NFT market compared to $ 63 million in 2019, according to a recent report from Atelier BNP Paribas. The valuation of this market, which a community of connoisseurs trusts, rose 138% between 2019 and 2020, according to this report, to $ 338 million. The arrival of artists, sports personalities or even influencers in this market seems to be opening up new economic perspectives.

Thus, some digital objects can turn into speculative bubbles that override the value of the object itself in favor of its NFT. As in digital art, “how for many collectors the artistic aspect is superficial”notes Steven Sacks, owner of the New York gallery Bitforms: “the important thing for them is rarity.” But as with many investments, the purchase value of one NFT is not guaranteed. If you are getting started, it is better to put in the money you are ready to lose.

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