If you follow crypto news, you have surely heard of “NFT”. Indeed, in recent months, many articles have appeared on the web on this subject. Find out in a simple way what an NFT is and how it is used in the art field.
What is an NFT?
NFT is an acronym that comes from the English “Non-Fungible Token”. In French, this could be translated as “non-exchangeable token”. In cryptocurrency, the notion of “token” refers to a property title. For example, when you have an entrance ticket to a concert in hand, it means that you “hold” a seat in the hall to attend the show. If you own a Bitcoin token, it means that you are the owner of an asset whose value depends on its price.
Most of the tokens you own are exchangeable. You can thus exchange a Bitcoin for fiat money or for another Bitcoin. Depending on the conditions, you can also get a refund for your concert ticket, or exchange it at a later date.
An NFT is a token that gives a property rights sure a digital work of art. NFT is used on blockchain applications, most of which work with Ethereum cryptocurrency. Owning this token is like a guarantee that makes your work of art authentic and differentiates it from potential digital copiesment carried out. Since its value is unique, an NFT is qualified as “non-exchangeable”.
The art market with NFTs
With NFTs, a real digital art market is in the process of being structured. Regularly, large sums are spent to become owner of digital works. These works can be paintings, maps, videos, tweets, etc. For example, recently, a digital card representing Cristiano Ronaldo sold for around 186,000 euros. The card on Kylian Mbappé has sold for around 55,000 euros. In this domain, the French company Sorare is one of the leaders. During the year 2020, the company saw its activity go from 50,000 euros to more than 3.5 million euros!
On the same principle as football cards, digital works of art are regularly sold on the NFT market. For example, a GIF representing Donald Trump now, lying on the floor, sold for $ 6 million! At present, an auction is underway regarding the first tweet never posted on Twitter. This is the tweet “just setting up my twttr”, which was written by Jack Dorsey, the creator of the social network on March 21, 2006. So far, the offer has reached 2.5 million dollars!
Much more than a fantasy, this use of NFT is yet another example of how blockchain is about to revolutionize all areas, even the most conservative like that of art.