NFTs or Non Fungible Tokens are the talk of the town right now and more widely considered as “the future of digital arts.” NFT’s hype in social and even traditional media is not for nothing; the industry is now worth billions and is seeing some serious adoption by artists, companies, and sports organizations.
For the uninitiated — an NFT is non-fungible, i.e., unique, secure, and certified digital data that cannot be duplicated but can be traded or authenticated via a blockchain network. An NFT can be almost anything that can be digitized, including gifs, videos, audio, digital art, tweets, etc.
NFTs are a part of the blockchain and cryptocurrency ecosystem used as an online ledger to secure digital transactions. While Bitcoin and other such cryptocurrencies solve problems with the current banking system while increasing security and privacy, but NFTs solve some of the critical problems that the current digital art industry faces like:
- Digital art ownership and copyright
- Identity theft and related frauds
- Fake certification of authentication
- Hard to buy or sell digital assets
- Monetization of digitalization assets
Blockchain and NFTs may sound complicated, but companies like Fusible make NFTs easier to trade and use. The bottom line is that they are still individual tokens with extra data stored on them. Currently, the internet is full of misinformation and skepticism about this newfound technology. Therefore, we are here to bust some of the major NFT myths going around the internet right now.
#1 NFT art can be duplicated
NFTs are essentially unique smart contracts built on blockchains like Ethereum and Binance Smart Chain. These are unique in every sense and are scarce since the creator can limit the number of NFTs as they wish.
Like every art, NFTs can be duplicated, but since it is hosted and approved by a blockchain, there is no way that it can ever be an original copy of the art.
#2 NFTs are bad for the environment
Not all NFTs are based on PoW blockchains; many PoS protocols allow users to create their own NFTs. In Proof of Work(PoW), mining devices have to solve complicated puzzles to approve the transaction; the first device to approve of these transactions gets the reward. While PoW is a sophisticated system, it consumes a lot of energy which might have some environmental repercussions.
In fact, many artists have decided to go with environment-friendly PoS blockchains, which consume less power, are fast, and charge less fee.
#3 NFT is a temporary wave
NFT is not a temporary internet trend; it is here to stay; over the years, the industry has gradually improved, and millions of dollars are flowing into the market every day. Apart from that, many institutions have adopted NFTs, including NBA players and cricket teams.
#4 NFTs are complicated
Since NFTs are a relatively new technology in the field of digital arts, which is also quite young. NFT building is not as complex as it seems; many powerful platforms can help artists create NFTs more accessible, and NFT trading like fusible can help boost the artist’s work and art appreciators.
#5 NFTs are not transparent
NFT’s are classified by a number generated via blockchain. The blockchain’s ledger stores all the information about the purchase, including the primary data of the buyer. Even though it is a form of cryptocurrency, each token is unique and cannot be exchanged in a standard crypto marketplace; hence, they are non-fungible. For example, saving the image of an NFT does not make them a millionaire.
NFT is a new technology with tremendous potential and room to grow; instead of talking about the shortcomings of NFTs, concentrating on what they solve and how they can be improved further will be productive and profitable.
