Non-fungible tokens have been hitting the headlines lately. And for good reason. They’re the new trend of digital art based on the wonders of blockchain that is taking the art industry by storm. But before we delve into that. Let’s have a look at exactly what they are. Now let’s get technical for a second. The term fungible means an asset that you own that can be exchanged with something else. For example, if I have a £5 note, it’s a fungible asset because it can be swapped for another £5 note. However, if something is non-fungible, it means that it can’t be swapped with something else. And so non-fungible tokens are pieces of digital art or property that have their separate value.
Non-fungible tokens have a separate layer of authenticity thanks to the blockchain which can be used to signify that they are indeed what they say they are and not a replica. This means that, say, for instance, only 10 versions of a digital piece of art were minted. Each would then have its own unique identity to say which number in the collection it was. And it would be impossible to replicate this unique identifier. This then helps in providing these pieces with a unique and rising value. Which is attractive to collectors.
Of course, NFT’s can be attributed to anything digital. However, where the attention is lately is in the art industry. The NFT art industry has grown to the next level. The technology embedded in NFT’s ensuring that artists are paid fairly for their work and it is protected against fraud. You can also create NFT’s yourself. You simply need to create a piece of art and ‘mint’ it. When you purchase a piece of NFT art you can also see the ownership history which can further solidify its authenticity.
Needless to say, the craze has certainly gained traction and attracted the attention of some big names. Some recent notable events include Kings Of Leon releasing their new album as an NFT. And musician Grimes recently sold her collection of NFT’s for a total of $6million. It comes as no surprise then that many people have seen NFT’s as very worthwhile investments. Similar to real-life pieces of arts with many scooping up the hottest in NFT’s as long term investments and also to flip. With most at the moment going to the flipping option but with some holding on to them for the long haul.
Here at Laskos, we are excited to see what the future holds for NFT’s and the world of crypto in general. Over recent years we have seen blockchain drive innovation at a pace not seen before. If you want to stay in the loop with all the latest NFT news and tech news subscribe to us here at Laskos, the home of digital.