NFT is short for Non-Fungible Token. Non-fungible stands for something that is irreplaceable and cannot be substituted – it is something unique. Token can be thought of as a coin or emblem. A NFT is a unique or a limited edition digital asset. In the physical world, you can think of it as analogous to an extremely rare gold coin, of which only one piece or a very limited numbered series exists. For a NFT, the material (gold) and form (coin) can be anything digital in any form. Each NFT has a smart contract encoded into it with decentralized blockchain technology, which serves as a digital proof of authenticity and can be used to verify the owner of the digital asset.
Currently, NFTs are mostly used for digital art – images, photos and videos – but they are increasingly popular as representations of real-world collector’s items and for example in-game objects players can earn, collect & sell. In the future, applications of NFT will expand considerably, for example to the world of luxury fashion, sports memorabilia, and even real-estate. In those cases, the certificate of origin & ownership or the deeds to a house can exists as a NFT. Even without a link to the physical world, NFTs are already a new asset class.
The beauty and benefit of a NFT is its transactional simplicity: an item can exchange ownership without middlemen or complex paperwork. As mentioned, NFT is a smart contract in itself. We are only at the beginning of the evolution of the new asset class, which will radically transform and disrupt online sales and transactions. That is why we at NFTstore.Gallery have jumped onboard the new technology and want to advance the opportunities it presents. We believe NFTs will change the way people do business online – and offline. We firmly believe that all art – created either digitally or digitized as a NFT representation – is headed for a heyday that is life-changing for many. The time is right for many reasons, as the macro trends are taking us to increasingly digital-centric societies.
NFT has several useful inherent features. The technology is ever-evolving and new applications for NFT are discovered every day. This is also the reason why many major brands and global corporations have begun to tap into the potential of NFTs to enrichen their customer experience.
For example Coca-Cola forayed into the virtual metaverse with their first-ever NFT, a unique “loot box” collection of multi-sensory digital items, including a custom-designed Coca-Cola Bubble Jacket that can be worn in the Decentraland 3D virtual reality platform, instantly recognizable sonics of enjoying a Coca-Cola and a Friendship Card that refreshes 1948 artwork used in a set of Coca-Cola trading cards. The loot box was sold for $575,883.61 in an online auction.
Many popular artists and influencers are forerunners of NFT. Beeble's collection of digital artwork, “Everydays: The First 5000 Days”, which contains an image for each of the 5000 days, was the first-ever purely digital item sold by the major auction house Christie’s for a whopping $69 million. Any NFT can consist of several items bundled into one and they can include hidden and secret unlockable content only the buyer of a NFT has access to.
Perpetual royalties is one of the unique features of NFT that is especially beneficial for artists and their craft: each time a NFT is resold, the original artist will receive a percentage of the resell price. This automated feature is not available in traditional art sales.
For us it is paramount that our artists – our principal clients – are winners in everything that the new technology enables. Our mission is to help our artist succeed. There is a lot of fresh wealth in the world of cryptocurrencies being invested in new assets. We help the works of our artists to stand out from the crowd and the artists to make a name for themselves. NFTstore.Gallery is a gateway to the brand new world of digital art.
In our next blog, we will dive deeper into the concept of Metaverse. Don't want to miss it? Subscribe to our blog below!