NFT – what is it and why is it so popular?

If you haven’t spent the last few days under a rock, this is for sure you have already seen or heard information about strange monkeys and bears. Yes, it means NFT. No need to hide, this is a very hot topic lately, especially since it is promoted by celebrities, and even Magda Gessler has a digital moon. The photos fill Twitter, Instagram and Facebook, and with them learn more about new NFT-related projects. It’s easy to lose in all of this, especially if you don’t fully understand the idea of ​​this technology. Some say it’s a financial pyramid and a big scam, others say it’s the futuretakes small steps into our lives. Who should you trust? In this column, we will dispel some of the growing myths, and first of all, I will explain to you in a simple way what NFT tokens really are.

NFT – what is it and why is it valuable?

Let’s start with the book – NFT (non-fungible tokens) are tokens that cannot be exchanged on the basis of a blockchain.. With their help we can get virtual things like graphics, virtual real estate or even skins in games. NFT technology makes it impossible to counterfeit an acquired asset, so we are confident that we are the sole owner of the NFT-based item. This makes each such case unique … in an unusual way. I mentioned monkeys earlier. Nothing prevents each of you from uploading any monkey image to your computer or phone and doing whatever you want with it.. He put them on the wallpaper, turned them into another job or sent them to friends. The problem is that then you will not have the sign itself and you will not be able to confirm the element. Sounds complicated, so let’s keep it simple.

I want you to understand the whole idea of ​​NFT more easily, so I will use an example that is easy to analyze. Let’s take Leonardo da Vinci’s iconic painting – the Mona Lisa. Everyone knows that there is only one original and there are different ways to check it. Any artist in the world can create his own reproduction of this painting, and with appropriate effort, it can be practically indistinguishable from the original. Thus, we have a situation where the original is created with a certain value given by the market. On the other hand, we have counterfeits that someone can try to sell as genuine, and a less informed buyer can be deceived. NFT is similar with one exception. Suppose you uploaded a picture of a lady.

This time, anyone, even if they don’t have the necessary information about the drawing, can check (because everything is based on blockchain technology) that your proposal is fraudulent and that you are not the real owner of the business. It is very easy to show to whom something given in NFT technology actually belongs. Now questions may arise – “Why do I need this painted bear, a picture of the Mona Lisa, even though I can hang it … and even if I want to put it on my phone as wallpaper, I’ll download it and I have it!” You are partly right, but partly the opinion is a little different, so let’s move on.

NFT bears

NFT – what is it for?

True, any work related to miracles You can copy NFT in one way or another. Image – screenshot, video – note, text – copy. The problem is that there is more behind tokens. A very simple check of the owner, in addition to the creator, allows him to present real benefits this time. I’m already talking about monkeys, so let’s move on. In the case of digital monkeys, people are encouraged to join the Bored Ape Yacht Club NFT and buy them.

I will add this out of curiosity The cost of virtual pets even reaches several million zlotys. What is the motivation to join, especially since the amounts for a few pixels are completely absurd? The monkeys themselves, of course, are not only collectors and investors, but also have a desire to create an elite group. Club members organize meetings all over the world, create joint events, as well as more or less complex projects.

What is NFT

So we can say that for a few hundred thousand zlotys (the cheapest monkey costs more or less, the prices are variable) you can buy yourself into the world of stars and rich people. Other members of this club are Eminem, Snoop Dogg or Jimmy Fallon. In the case of “Bored Ape Yacht Club NFT”, the verses had to gather the community – an elite and rich cream, and it was a success. Of course, this idea can theoretically be replaced, for example, with tickets for these events. In addition, NFT is an accessory that makes it easy to show that we are in a certain group, just like Rolex owners. When we see them, we immediately realize that someone is rich.

Of course, there are other projects, often more interesting and rational. For example, there may be clothing companies that can provide owners with better offers by creating a community based on tokens. or limited collections. So what is NFT after all – as the examples show, it’s a way to create new communities, even as the developers talk about themselves.

NFT - what is it

It turns out that this is a kind of game, a Three types of people join the projects: those who advertise the enterprise, those who want to join a certain society and those who want to earn with these tokens. As your community grows, buy cheaper and buy more. But keep in mind that the value of NFT tokens is speculative and man-made. The cost of certain jobs often rises to hundreds of thousands of zlotys a day. The next day their value may be equal to 0.

NFT – how to buy?

Suppose, after reading the first part, you thought about owning an NFT token. For various reasons, whether it’s an investment or just a desire to join a group. So that Where can I get NFT? For people who are not involved in the world of cryptocurrencies (what is Ethereum?), The process can be a bit complicated. Currently, the most popular exchange for NFT tokens is the Opensea platform. There you can join hundreds of projects looking for the perfect digital element for yourself with all the potential bonuses.

NFT - how to buy

The procurement process is not time consuming. You create an account on the site, connect it to your own cryptocurrency wallet and You can buy any token with Ethereum from the site with a few clicks. You can sell the obtained NFTs in the same way. Shopping itself shouldn’t be a problem for you, but getting Ethereum and setting up a wallet can be a little more complicated – you can read more about it in one of the previous articles.

NFT – Demonstrate your new purchase

In addition to belonging to a certain group and the benefits that come from it, you can of course boast of tokens like Rolex on the wrist – we don’t buy them to lie in the closet. Popular sites try to follow trends. For example You can now link your account to your wallet on Twitter, the system will then check your NFT icons (those in the form of pictures) and you will be able to set them as your avatar. The website then provides a special, hexagonal profile image to confirm the authenticity of the NFT image. There are more and more such ways to show your tokens, because it increases the profitability of the whole enterprise – this is an additional advantage that always speaks to the purchase.

NFT - what is it

We also need to give an example of NFT in games. Many companies are already planning to add unique elements that can be displayed on the servers of a given title. Not like before – for example, in the form of a skin that everyone can get. Using NFT, each element will be unique and unique. After all, it is difficult to predict what will happen in the world of oil. This is a new project. However, you can see great interest in even the biggest brands, and there will probably be more and more crazy ideas about the use of tokens.

How does NFT harm the environment and what are the dangers?

I know that the direction of NFT technology is unknown. Nowadays, it’s just the ability to make digital things unique. Their usefulness can be discussed and can simply be called fashion. Complicating matters is that NFTs also pose certain threats and threats. Let me start with something very obvious, that is, fraud.

NFT technology now makes it much easier to manipulate a given project. Popular ones can be used to artificially increase the value of individual tokens, as in the case of a monkey club or Polish bears. This is an example where the image of celebrities can be followed by the crowd, and the project itself can be just a leap to the box office. Another form of deception, of course, is the promises of NFT.

NFT environment

You can find very promising projects on the Internet. Authors can promise big bonuses during the time you buy the sign. Limited products, trips or other benefits – sounds interesting, but of course it can never happen. This requires good manipulation, which will involve hundreds of people, and the author’s quick exit from his project – he can promise the best, but in the end does nothing. NFT is a speculative project, so it is easy to find such unpleasant situations.

However, suppose we check all the projects well or live in an ideal world and there will simply be no scammers. But there is a slightly more complicated problem. NFT tokens are mainly based on Ethereum, which runs on the Ethereum Proof of Work. Thus, if a new token is created and there are related transactions, miners will have to “discover” new blocks. Network traffic is growing and NFT is becoming harmful to the environment. Unofficial data show that the carbon footprint of the token is about 35-45 kg of CO2, which corresponds to ~ 6000 hours of YouTube viewing. On the other hand, you can say that land, air or sea transport emits more pollutants – so why are you punishing evolving technology?

NFT twitter

So the question is, is it acceptable to simply create images (or other content) on the Internet that have a negative impact on the environment? Especially at a time when there are global climate problems? You have to answer these questions yourself. The solution may be a proof-of-stack system that will change the way Ethereum works – but we don’t know when that will happen. Currently, some networks charge so-called gas fees during transactions. It is designed to compensate for greenhouse gas emissions, but it is not an ideal solution.

NFT is the future, but it is not yet known whether it will be bright

NFT is a project we will hear more than once. Millions of tokens attract even ordinary Kowalski.. However, it should not be forgotten that the activities of NFT are somewhat dubious. So far, this is not enough to change our world effectively. Creating unique works on the Internet is interesting in a sense, but is it necessary? Maybe after a while someone will be able to use this technology in a better way than creating a boring monkey club, and then we will be able to talk about a real revolution.

Let’s see what happens to NFT in the future. Personally, I do not recommend looking at tokens as a form of investment – this is a very risky area of ​​the market.. But where does the NFT phenomenon come from, if its use is controversial and additionally causing a lot of damage to the environment? Presumably, this popularity is due to the fact that there is a lot of money behind the projects that attract more people. But let’s not deny the idea itself – it’s interesting. So, we are waiting for more ideas on NFT technology, and in the meantime we invite you to discuss. Do you think NFT tokens have a future? Write in the comments.

Author: Patryk Pawelak

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