The big news swirling around the digital space right now is within the newest contribution to the Ethereum blockchain with NFT’s – as a concept they’re very simple to understand, but things are certainly a lot different in practice. But as many big names have already jumped onboard, it seems the support is certainly there are growing, but could NFT’s change the way digital business is handled, or is it just another passing fad that comes and goes with time?
The first step is to understand what they are, and currently they serve mostly as just a digital wallet for collectible items like artwork or new album releases, but this is also where the difficulty of NFT’s is as the value assigned to them isn’t exactly clear. If you were to trade a $1 bill with another, you’d end up with the same thing that holds the same value, this is a fungible item – if you’re to take a rare painting however, and trade it for another, you get something completely different with a different value too, a non-fungible item, and this is where the market will be for NFT’s. With a physical item, however, it’s harder to replicate or duplicate and spotting fakes or copies can be much easier, the same isn’t true for an online item that can simply be saved in the same quality.
As such the gist is that you instead buy ownership of the ‘original’ for whatever that means, store it away in your digital collection, and use it to trade or sell at a later date – there’s plenty of security in it, crypto as a whole has been used widely for a growing number of different services providing an alternative for those most interested, particularly throughout the online space like those found here with online gaming services offering popular options for the likes of credit card and crypto – but even with that security there are certainly still a lot of questions swirling around the NFT market.
Whilst the current market is purely within the digital art space however with the most notable being the sale of the Beeple painting for $69 million just this past weekend, there’s plenty of room for expansion here too as the market will almost certainly change over time and incorporate many different markets too, but it’s already moving extremely quickly with some big names becoming involved from many different sectors, there’s already plenty of money moving through. Regulation and protection will also certainly be key here, for protection of the consumer and the seller, as with any new market that grows so quickly there will be those who look to take advantage.