NFTs, or non-fungible tokens, are unique digital items stored on blockchain, the same network that runs cryptocurrencies. Anything digital can be converted into NFTs and monetized, including images, videos, music, and even the online version of this article. NFTs are certificates of authenticity rather than digital art, and most use the blockchain of Ethereum, the second largest cryptocurrency. Like cryptocurrencies, NFT transactions do not yet have legal backing. A lack of regulation also means that prices are more susceptible to manipulation.
NFTs are becoming more popular due to increased internet usage and increased interest in cryptography. “Many consumers who had parked their money in cryptocurrencies were introduced to NFTs as a new investment vehicle. Celebrities such as Twitter co-founder Jack Dorsey, Paris Hilton, and Snoop Dogg The sale of NFTs also increased the popularity of NFTs,” said Sumit Ghosh, CEO and CEO. Co-founder of Chingari, an NFT marketplace launched by Salman Khan in October 2021.
Apart from art and memorabilia collectors, some people use NFTs for speculation, as the value of the token is based on how much the buyer is willing to pay. Santosh Yelajothra, member of the Blockchain and Cryptoassets Council (BACC) and chief ecosystem officer of ” he said. He added that the NFT market could see a correction in the short term.
Increased interest in digital art due to pandemic lockdowns has also helped NFTs reach a mainstream audience, one that is not a cryptocurrency supporter.
NFTs also allow digital content creators and IP (intellectual property) owners to monetize their works and assets without “middlemen” and earn royalties each time an NFT is resold. can do. “NFTs have given us the ability to make digital assets rare and verifiable. NFTs fragment digital content and make it tradable, making IP liquid,” said the CEO of an Indian sports NFT company.
Anyone can download and “view” the world’s most expensive NFT (a collage of 5,000 photos by American artist Beeple) sold by Christie’s, but only one person actually “owns” it. is. Its ownership data will be stored as his NFT on a decentralized blockchain network.
According to Reuters, NFT sales in 2021 reached $25 billion, compared to just $95 million the year before. Industry insiders say that in an increasingly online world, “bragging rights” in the form of NFTs are also becoming digital.
In November, Amitabh Bachchan put up a recorded version of his poem 'Madushala' for auction. Other celebrities like Salman Khan and Sonu Nigam have also launched NFTs.
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