NFT here, NTF there, you’ve probably heard this word before, but what exactly is it? For some months, the word NFT has been part of our vocabulary, but many do not know exactly what it means. If you want to understand why NFTs are trendy and especially to understand its interest, this article is for you!
What are NFTs?
Let’s start with its meaning, the acronym NFT means in English Non-fungible token, which could be translated into non-fungible token. Even with this translation, it does not mean that we directly understand its meaning. Let’s see more precisely what the latter corresponds to.
Very often used with cryptocurrency, NFT is one unique and tamper-proof identifier. Thanks to a kind of digital certificate, you will be able to protect a digital work of art which you would have acquired. The latter would store the signature of the work, the name of the author, the style of the product, the date and a unique authentication code. An NFT can be represented by a picture, a short video or an illustration.
Today, many public figures have acquired NFTs, but not all of them see the same interest in them. It is actually a revolution for artists who can now to discover their style and their intangible works of art. As an amateur, you can therefore acquire a work of art, which you become the sole owner of. With regard to copyrights, these are held on a blockchain which allows you to be the sole owner of your acquisitions. These are kept by the author of the NFT in question.
An upward trend has been observed for several months. Even the NBA is starting to sell the best stocks of various players during its games. This happens like an online auction and the highest bidder wins the action. Buyers therefore have very fond memories of their favorite players. But will this trend remain permanent or will it last for a few months and then recede after that?
also read Nelson Mandela’s iconic arrest warrant auctioned on the Ethereum Network
This new trend has been around for 7 years now, but just a few months it is on everyone’s lips. Some people therefore do not fully trust this new practice. and one could then wonder if this new fashion carries risks, if so, which ones? Any acquisition, whether significant or not, involves its risks, and while Blockchain is secure, it is better to insure your works of art. This will allow you to avoid any risk.
Choose Hiscox insurance for your artwork
Owning such valuable items should prompt you to insure them. You might not know that, but it is possible to insure your works of art. Some insurance policies offer you coverage to protect your intangibles. It is possible that you own NFTs at low prices, but some are set at very high prices and therefore require insurance.
Today we are seeing an exponential increase in cyber attacks. A cyber attack falls into four categories:
- image damage
Hiscox is online insurance which offers you several services while insuring your works. It offers services tailored to your needs and desires. You can now make an estimate on the website, it allows you to understand the real meaning ofinsure your artwork to keep it safe. This might allow you to be more calm about a new technology that is not yet part of our customs.