What’s the point of an NFT?

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Last week, perhaps saddened by many Australian cricket fans, Steve Smith joined the NFT Gravie Train, a Kiwi-owned NFT studio and marketplace launched by the great Dan of the former All Black Rugby. Carter has become the latest public figure to jump on.

Under the deal, Smith will sell his face and name as a digital token and shill this new form of online souvenir with a high price tag. “I can’t wait to connect with you in new and innovative ways,” says Smith on Instagram.

But what does Steve Smith NFT ownership really mean?

What is an NFT?

NFT, an abbreviation for non-fungible token, is a unit of data stored on the blockchain, a type of digital ledger that records ownership.

With blockchain technology, information about each transaction is recorded in “blocks” and broadcast to all computers or networks in the system.The block contains data about the transaction When The ID of the previous and next blocks so that all blocks can be linked in a chain. This makes the blockchain completely secure as it is replicated to all computers linked to the network. If one user’s copy of the blockchain is different from the other, it’s clearly a scam.

“If no one is in charge, everyone is in charge,” said Mark Ferraretto, IT Legal Specialist. universe last year. “The blockchain reflects this Anyone To be part of the blockchain. “

Blockchains are most commonly used to record cryptocurrencies, but NFTs aren’t really cryptocurrencies, but they work as well and are often purchased using cryptocurrencies such as Ethereum. ..

So what’s the point of NFT?

Generally speaking, NFTs are tokens Owned. Grants owner rights to digital media such as artwork, photographs, GIFs and memes. As a result, digital creative is gaining attention as a new way to market your work.

Some NFTs are famous for making people ridiculous and rich. Last year, digital art by artist Mike Winkelmann (known professionally as Beeple) was sold for $ 69 million through Christie’s at the auction house. Celebrity heir Paris Hilton owns over 150 NFTs. This includes a virtual Chihuahua covering a marble pedestal designed as an ode to a deceased pet, which she displays on the screen around the house.

However, NFT ownership is a tricky concept. The NFT has a built-in smart contract that specifies the rights of the owner. In some cases, owning an NFT may give you exclusive rights to the art or media you encode, but in many cases, owning an NFT of artwork only gives you rights to the NFT itself. , The original artwork may be freely available elsewhere. , On the internet or in the real world.

An artist can The copyright of the work is transferred to the purchaser, but the purchaser may retain the copyright. Which raises the question: what exactly is the point? Is NFT really worth it?

Like many economic products, the value of NFTs is only related to the fact that people perceive it as valuable. Whether any or all of the NFT’s value is maintained depends on the power of the market. The average price of NFTs fell 70% between February and April last year, which some commentators attributed to the removal of “gimmick” tokens.

For some people, NFTs are insanely expensive, but invisible football card-like collectibles. What about Steve Smith NFT? Think of them as digital souvenirs and play with them.



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