NFTs, is it a revolution or a scam?
Table of Contents
Introduction
If you are interested in technology and alternative investments, you have probably heard of NFTs. Nobody knows precisely what they are, but everyone knows that there is a lot of money to be made with them. And, of course, lose too.
The question is, is NFTs a revolutionary technology, or is it a scam? That is the interrogation we will answer today, so be careful.
Before you jump, you should have some basic ideas about Bitcoin, Blockchain, and Ethereum. If not, some concepts may sound like Chinese to you.
It is recommended that you understand the basics of these technologies and then return to this article to understand what NFTs are full. Well, let’s see what NFTs are and whether or not they are a scam.
What is an NFT?
An NFT is a non-fungible token. That doesn’t mean much to us now. What is a permit? What does fungible mean? Well, a receipt is nothing more than a record on a blockchain.
With Bitcoin, for example, these records are related to the account balances that users have. That is money. But these records can be much more than accounting records.
On the other hand, these records are generally fungible. Consumable means that you don’t care if they give you a specific item or a different one, as they are identical and just as valuable.
For example, a ten euro note is fungible with all ten euro notes. It happens that records on a blockchain (i.e. tokens) are usually fungible. They don’t care about one album like another. However, this is not the circumstance for NFTs.
NFTs are tokens that contain detailed information, metadata that makes this data set unique. And like everything on a blockchain, it is immutable.
So we have something very scarce (to the point of uniqueness) and will remain that way for all eternity (or as long as the blockchain lasts). A record could be created with the same metadata, but it would not be the same record because the date would be later.
We are facing the creation of singularity on the internet. And that is very powerful because it allows you to create the term real estate on the Internet. Something that was not there until now.
Because yes, you could create a digital work and put it up for sale on a website, but anyone could download it and republish it without paying you. This is impossible with NFTs because what has value is not the art itself but the code that accredits you as the owner.
Someone might say, why do I want an NFT when I can have the metadata that should belong to the owner of the NFT? That’s not the concept either: the owner of the NFT does not own the abstract metadata but rather the specific metadata of the blockchain dataset. That is the value.
Saying that the value is in the metadata is like saying that the value of the Mona Lisa is in each replica, not in the painting on display in the Louvre.
Programmable art
Believe it or not, what we mentioned in the previous paragraphs represents a paradigm shift. Trust us when we say that NFTs will revolutionize our understanding of the Internet. It’s a matter of time. And it all starts with art because, thanks to NFTs, art becomes programmable.
And indeed, in the records of the chain of blocks that we mentioned, which are the essence of the NFT, you can add programming, code, software, a program that runs regularly … This program can have that incorporated, for example, any When NFT It is resold, the original creator charges a percentage of the sale.
This means that an artist can create an NFT to transfer ownership of a work to a buyer, and if that buyer subsequently resells the labour, the artist charges a commission. This is revolutionary, as the artist currently only charges fees when he sells his work for the first time.
More than art
But the possibilities of NFTs do not remain in technology. They go much further. Once you can create an effective digital property, you can create truly spectacular things. The most profitable field of development for NFTs in the world of video games. It seems like a lie, but it is.
And when you think about it, it makes all the sense in the world: in video games, there are many elements that the player can own.
The account itself, the different characters, the weapons used, etc. And all of that is probably an NFT. Due to this, there are currently many video games that incorporate these elements as NFT that players can buy and sell later.
Of course, these games are still at a very early stage. We are not looking at high-quality games with a tokenization system and NFT. But it is something that does not stop growing. In the next two years, you will likely see an excellent quality triple AAA game where you can earn money playing.
And from here, the possibilities are endless. Only our creativity and imagination know how far the development of NFT can go.
That is why we want to insist that it is not a scam. It’s worth spending some time researching and thoroughly understanding your technology, as well as its technological aspects. You will not regret it.
In short, NFTs are a technological reality that is out there. And that will allow us to do things that were previously impossible on the Internet.
And, of course, they will enable artists to have a better standard of living and to see their work rewarded for longer and more honestly. That is why we support NFTs from here.
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