Understanding the NFT Revolution

In the last few months, the 3 letters you have heard the most, if you are a little interested in the world of cryptocurrencies, are NFT.

These intangible digital works are revolutionizing the way you understand deeds. Who would have thought, just 1 year ago, that Crypto Punks, Bored Apes or digital comics would be able to sell hundreds of thousands of dollars as soon as they were put on the market.

NFT stands for Non Fungible Token, non-fungible tokens for French-speaking purists. Behind this somewhat barbaric acronym hides a world that is gaining momentum and that is rapidly becoming essential. Whether we understand their interest or not, they are considered by many to be the new digital “Eldorado”. But how do NFTs work? What does it really offer? Will the trend around these digital works and the proliferating projects break the momentum? How to avoid making mistakes and investing in the right project? It is true that it is hard to imagine that some people are ready to invest thousands of dollars on simple digital images. To fully understand, we must return to the operation of the blockchain and the famous Smart Contract, these famous Smart Contracts.

An NFT is a cryptocurrency that stores information on the blockchain. This info is:
– Transparent, anyone can look at it or have access to it
– Unchangeable, no one can change it
– Undoubtedly. Once Blockchain has validated the information entered, it is an irrefutable proof of its authenticity.
– Unique: There are no 2 identical NFTs, only by their serial number.
– not replicable: It is not possible to copy an NFT. And taking a screenshot of your phone screen does not count!
– Not divisible: Although some works, such as Gustav Klimt’s Kiss, were sold in 10000 NFT, each NFT in this case represents part of the original work.

NFT is therefore a very useful element in blockchain … but it is still necessary to make something useful out of it. For at the moment it is a bit of a rat race and its use goes everywhere. Its use should not be limited to digital art. But the ease with which it is possible to post your own NFT leaves way too much room for clever little guys posting pictures or drawings far enough away from concept art or a real project.

One of the latest uploads is an NFT signed by McFly and Carlito, the well-known younger duo during a dice video with the YouTuber Squezzie. Following a die from Hasheur, a cryptocurrency and blockchain specialist on Youtube and BFM Business, a very childish drawing was put up for sale on OpenSea, one of the largest NFT sales platforms. What saves this NFT with the title “West la Zone” is that it was put up for sale in favor of Secours Populaire. But it shows that anyone can post an NFT, and with a buzz and an active community on social media like Discord, it gets very valuable, very quickly, without any real talent or purpose.

I do not want to list those projects without interest which have taken enormous value since they were put on the web, but which have gone the other way even more, but there are many of them. As in any investment, and which I repeat in my training on www. potentialfinance.com.

Bet on safe values

From my point of view, there are only projects that are based on safe values ​​that can last over time. The Veve platform has well understood this, as it only offers NFTs around American and Japanese pop culture. Owning StarWars, Disney or even NFTs from luxury brands like Givenchy gives more weight than a Pixelmon project, the latest failure in an (too?) Ambitious project. But if NFTs are used well, they can, in the very short term, regulate and revolutionize the world of intellectual property and copyright. And I think the challenge lies here … and not in the random creation of digital art. NFT makes it possible to administer the use of a work and to honor its author (or its owner) for each of its uses. Revolutionary, right?

This is not the case today, but it can be fully integrated into the smart contract. As in any classic contract between 2 parties! NFT therefore becomes more than a speculative tool, but an investment that can make us money when used by others. The most common use of NFTs today is to become a member of a very select club. Example: When you own a Bored Apes, you can come into exclusive contact with the other owners. In order to stay in the artistic world, we will in the coming months see the establishment of a business around derived products.

Thanks to NFTs, it will be possible for artists, major events such as festivals or sporting events, to offer privileged admission, bonuses … singer Orelsan and Belgian singer Angele, recently offered 6 golden tickets, hidden in their albums for lifelong access to all the concerts of their lives!

The resale market

It is quite possible, thanks to NFTs, to do the same digitally! It will also be possible thanks to NFTs to control the resale market. Producers and organizers of events (them again!), Are fighting against the resale of tickets for concerts or football matches at much higher prices. Thanks to NFTs, a percentage could be automatically redistributed to them or even allow them to control this resale by limiting the resale price or even the number of times it resells! Ditto for music or video games. Offer additional song versions, exclusive bonuses or even digital additions thanks to NFT for extending product life. You see, the opportunities that NFTs offer are tonight. Everything can be integrated into a smart contract.

But like any new market, derivatives and scams are devised to make money even faster. It is a pity it gives even more reluctance and may delay its attachment to the general public. According to a recent study, almost 8% of the French population has already invested in cryptocurrencies … the figure must be almost 1% for NFTs. It is likely that the Metaverse projects launched by the large Silicone Valley will allow a rapid acceleration of their adoption. WAIT AND SEE… but tomorrow’s (digital) world is already underway!

Arno Bitan

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