There’s nothing like the rumble of news about blockchain technology to make you think, “Um… what’s happening here?” That’s the feeling people get when reading about Grimes receiving millions of dollars from NFTs or the story of Nyan Cat being sold for a fortune. But, then, just when we thought that we knew what was going on, the founder of Twitter tweeted an original tweet on auction as an NFT — and you can bet they cleaned up a whole lot of cash.
You may be asking: What exactly is an NFT in the first place?
And in the second place, too.
The latest scoop on the incredible inedible NFT. You can’t eat it, but for some people this blockchain blockbuster is sure a golden egg.
Okay, let’s begin with the basic facts:
What exactly is an NFT?
NFT mean a Non-fungible token.
Who is Beeple?
Michael Joseph Winkelmann (born 1981), popularly referred to in the form of Beeple, also known as Beeple Crap is an American digital artist, graphic designer, and animator. The artist is known for his use of diverse media to create humorous, phantasmagoric works which provide political and social commentary and uses popular culture characters as references. British clearinghouse Christie’s has referred to him as “A pioneering digital artist who is at the forefront of NFTs.”
How do NFTs function?
At a higher level, the majority of NFTs make up the Ethereum blockchain. Ethereum can be described as crypto, such as dogecoin and bitcoin. However, the blockchain includes NFTs that contain additional information, which creates a different working model than, for instance, an ETH coin. It is important to note that other blockchains can create their own version of NFTs. ( Some already have.)
What’s worth getting in NFT?
NFTs can encompass anything that is digital (such as music, sketches that you download, or your brain transformed into AI.) However, the majority of the buzz is about using this technology to market digital artwork. Marketing digital anything, including artwork, can create a passive income that will last for years.
Dogecoin does not count as an NFT. However, the GIF showing a Dogecoin, or the GIF NyanCat in OpenSea, can be considered an NFT.
Can Tweets Become NFT’s?
Yes, they can. The demand for Twitter Non-Fungible Tokens is growing. And if you want to know how it’s done, our best advice is — good luck with that.
Do they really believe this will end up being like an art collection?
Some people wish they could — such as those who paid more than $390,000 to purchase the 50-second clip by Grimes, as well as those that paid $6.6 million to purchase the video of Beeple. But, in reality, one of Beeple’s items was auctioned off at Christie’s, The famous British clearinghouse.
However, this is the part where it becomes a little awkward. You can copy and paste a digital file as often as you like, even including the artwork that comes with an NFT.
But Non-Fungible Tokens are made to provide you with something that cannot be copied and give you ownership of artwork (though the artist can retain copyrights and reproduction rights, as physical art). In terms of art collectors who collect physical works, the general rule is that anyone can buy the Monet print. However, only one person will possess the original.
It’s not a knock on Beeple, however, because the video isn’t actually a Monet. Right?
How do you feel about that $3,600 Gucci Ghost? Probably envious. The painting that Beeple had auctioned off to Christie’s was eventually sold for $69 million that is, in fact, more than $15 million than the price Monet’s painting Nympheas garnered when it was auctioned off in 2014.
Whoever snagged the work of Monet is able to enjoy it as a physical object. Digital art as copies is considered identical to the original.
However, the flexibility of having the original Beeple might be nice.
Okay, people have been building communities for years around things they have, but now it’s occurring with NFTs. Pudgy Penguins is one well-known community. There are other communities formed around other animal tokens. It is possible to argue it’s one of the first NFT projects. CryptoPunks has an online community for it, and there are other projects with animal themes like those of the Bored Ape Yacht Club who have a large membership.
The bottom line is — not the bottom line.
You should eat sawdust for breakfast. That makes about as much sense as trying to understand NFT’s if you are not a crypto Albert Einstein. And even if you are, the supersonic speed at which NFT’s are morphing will leave you in the dust. But hopefully, you have made a few million before that happens.
Image Credit: Pixabay; Pexels; Thank you!