Build Your Own Blog Like This One

And it is that just by taking a walk through any city in the world, it is possible to find different expressions of art that have been sold for large sums of money. This is because the original work can be exhibited in only one space at a time.

As is known, in Paris, there is the only representation of "La Gioconda" or "Mona Lisa" by Leonardo da Vinci. But, if you write the name of this work in an Internet search engine you will find the image repeated countless times.

In the digital world it is very easy to replicate an image, an audio or a video, for which millions of people can have with them an original representation of the digitized creation of any artist and in this way the work loses monetary value.

But, the NFTs came to solve this situation. Then you will discover what they are and why it is that everyone talks about them.

What are NFTs?

NTFs or Non-Fungible Token are a new kind of digital assets that are unique, irreplaceable and cannot be exchanged for a similar one. For example, all the people who have a dollar bill, have a good that has the same value.

If these people exchange a ticket of the aforementioned denomination among themselves, they will all continue to have the same value. But, if you are the owner of a sculpture and you intend to sell it, you will not find another like it on the market and its value increases over time.

Although both cryptocurrencies and non-fungible tokens use blockchain technology, they differ in that cryptocurrencies are fungible or exchangeable, while NFTs are not.

Furthermore, NFTs have the quality that they cannot be copied. This is what offers support so that unique digital files can be created in the world and that show the great value they have in the market.

An example of this value was how Christie's, a London auction house, sold an image called"Everydays: The First 5000 Days" created by digital artist Beeple, for $ 69 million.

The token is then a kind of certificatethat attests that the asset is original. But, thanks to this, digital objects that may seem somewhat eccentric have begun to take on value, such as a blog article, a tweet, an avatar, among others.

How Do NFTs Work?

Non-fungible tokens work with blockchain technology, for which all members of the network have a registry that will provide proof that there is a single owner of the asset described.

This chain of blocks belongs to the Ethereum network, so it is possible to manage the tokens using wallets that work with said currency.

This platform uses a method called 'proof of work' to create digital assets in the form of non-fungible tokens.

See how the market for these digital assets moves on the following platform:

The famous game Axie Infinity is one of the forerunners in the field of NFTs. In the last 24 hours, more than 26 million dollars in tokens have been traded.

Why Would Anyone Buy an NFT?

In recent months, Twitter CEO Jack Dorsey sold his first tweet for $ 2.9 million. While a video of Lebron James doing a mid-game block was sold for $ 100,000.

So you know you're wondering: why would someone buy a digital item that anyone can enjoy? The reason is that this object has begun to take on value, over time it is expected to increase and, now, the ownership belongs to that person.

Imagine that you own a photo of Lionel Messi eating churros. It seems silly, but he is a relevant figure in soccer today and in a few years he will be a legend, so more than one fan of this sport will want to buy him in a few years or right now.

It may sound crazy, but it is profitable. The only reason, as in any market, is that a digital object has been given value, which appreciates over time even for simple pleasure.

Why Is Everyone Talking About NFTs?

Many companies are using this technology to create their own NFT currencies and give value to digital objects such as land, houses or vehicles in virtual worlds.

The market for NFTs has multiplied considerably, so much so that the work sold for 69 million dollars has increased in value to 20,000 million. The increase comes despite warnings from financial experts.

Some applications or websites would even be offering loans by providing a non-exchangeable token as collateral. Entertainment companies plan to create NFT with program excerpts, images of actors and actresses, among others.

While companies in the sports sector would venture into the world of NFTs with all kinds of materials for their fans. These platforms create their own cryptocurrencies, which you must purchase to have access to any NFT available in the domestic market.

The NFTs carry with them other controversies, such as that to generate a token of these 200 kg of carbon are used due to energy consumption. This is part of the environmental problems produced by this type of technology.

Some organizations around the world are looking for proposals to replace blockchain technology and reduce energy consumption.

Thanks to the popularity of these tokens, all kinds of scams or frauds have also been observed through sites that resemble the original operators of these digital assets.

Conclusion

NFTs or Non-Fungible Token are a unique type of digital asset that cannot be exchanged. They use blockchain technology to certify the digital object to which it is intended to give the identity.

ORThey use the Ethereum network for transaction processingand they can be stored in wallets that are based on the aforementioned cryptocurrency. They are bought with the idea that they will be revalued over time.

Not only images have been categorized as NFT, but tweets, cars and houses in virtual environments, blog articles, among others. There is still a lot of suspicion in financial advisers regarding this type of property that is not regulated.

In addition, due to the importance that they have taken on the market, fraud mechanisms have also been born ready to steal these digital goods.

For their part, environmental protection organizations are very concerned due to the amount of natural resources that are committed to the creation of a simple token.

They hope to develop more environmentally friendly solutions that provide the same or better functionality for the digital world.

Thanks for your time. ;-)