NFT’S: WHAT? HOW? WHY?
On a random March morning, a headline caught my eye:
“Jack Dorsey sells his first-ever tweet, as an NFT for almost 3 million dollars”.
My jaw and spoon, both dropped. The fact that a digital piece, an object which could not have any physical significance to the owner was sold for such a high price was beyond me.
That’s when I started to delve deeper into NFTs to see what the hype was actually about.
I found it to be a very confusing yet interesting concept based on Blockchain technology.
A very common application of Blockchain is cryptocurrency, where transactions are stored in the form of a digitalized, distributed and immutable ledger ( sort of like a book containing financial records). It can be viewed by the people participating in that particular network.
WHAT?
NFT's stand for non-fungible tokens. Tokens can be any piece of digital item, ranging from screenshots, memes, and gifs to digital art pieces, playing cards . Non-fungible simple means that every item is unique and non-interchangeable.
This is a major difference between NFT’s and cryptocurrency. For the buyer and seller, the value of the next Bitcoin is always going to be the same as the previous. This makes it a commodity that is interchangeable and thus can be traded.
HOW?
NFT’s have a unique digital signature. Any digital item can be converted into an NFT to give it ownership and authentication, setting it apart from other pieces.
For making an item into an NFT, the owner has to first pay a gas fee. The item is then recorded and stored in the ledger used by the Blockchain, along with the stamp confirming that only you own it.
The only prerequisite for buying an NFT is that you need to have a cryptocurrency wallet.
Some popular NFT platforms for trading are:
OpenSea
Rarible
NBA Top Shot MarketPlace
WHY?
The buzz around NFT’s has grown since 2021, and people are willing to spend exorbitant amounts on digital pieces of art. This has given a boost to tons of people, especially people in the art and gaming industry. It gives you a sense of ownership of a unique artifact, without having to go and make the effort.
It does have cons, such as there have been cases of duping using a fake NFT. Also, NFT minting is extremely expensive when it comes to utilising resources as it requires extensive computing power and electricity . ( It is said that
Ethereum alone uses the same amount of electricity as used by Libya)
The working of the NFT marketplace is also not very accessible to everyone, and right now is limited to only the rich and upper class.
Even so, NFT’s are a quirky, interesting application of Blockchain and I see it as a great way for our generation to delve into the working of this technology. Further, it encourages young artists to make different pieces of art, showcase and sell their work!
Who knows, you might even see a gif made by me in the marketplace someday ?
METAVERSE: SCI-FI COME TRUE
The word itself whispers something foreign and futuristic. Metaverse literally means a web of 3D virtual words which incorporate elements from real life.
It is a way of social interaction in contrast to the methods we have available today. It combines the use of AR,VR, video and Blockchain to set up virtual worlds where humans like you and me can coexist, in the form of avatars, digital figures etc.
Augmented Reality(AR) uses the real-world environment as a backdrop and incorporates virtual elements in it usually using a device such as a mobile. They connect real and virtual backgrounds, and incorporate senses such as olfactory,visual and auditory senses.
Virtual Reality(VR) creates a virtual environment, a simulation completely different from the real world. Video games are an example of such type. It offers a real world-like experience in a virtual background and makes even the impossible things seem possible. It makes people experience thrilling events, and gives them control over some objects in the simulation, making it interactive.
The future is metaverse, as proclaimed by tech giants like Facebook and Microsoft. Microsoft has been working on this tech for a while and wishes to introduce holograms and digital avatars in Microsoft Teams by 2022.
Facebook has gone even further and changed its name to ‘Meta’ , while acquiring and investing heavily in AR/VR companies.
NFT’S and the Metaverse might go hand in hand, with the integration of NFT marketplaces and virtual platforms which opens a whole new level of avenues.
An example is of using NFT tickets to gain entries to virtual events, as done by an event NFT.NYC back in 2019. In the gaming world, this combination can lead to exclusive and personalized characters, properties and access. It might help the user to show their support for a cause/community, or display their true selves in a creative manner .
Let’s just say in the next 5-10 years, I look forward to minimising my social interactions and interacting with cool avatars, attending concerts in virtual worlds and living my ‘main character ‘ life instead, all a click away!
Sources:
2.https://analyticsindiamag.com/how-nfts-will-shape-the-metaverse/
Top comments (1)
The metaverse is a fully immersive virtual reality that will replace the existing internet. The metaverse does not exist yet and will most likely not exist for at lease a few more decades.
The metaverse is not in any way related to: