Why You Should Pay Attention to Cryptocurrency Technology and Non-Fungible Tokens (NFTs)
By: Marinolini Krishna
Latest on May 29, 2022
What NFTs Mean for Investors
NFTs represent ownership of unique digital assets, verified by blockchain technology, and are currently sold for amounts reaching millions of dollars. An NFT can be anything from a tweet to a domain name, and they differ from cryptocurrencies because they are non-replaceable and non-interchangeable.
Are NFTs Unique – But Are They Really?
NFTs are gaining popularity as collectibles in sports and arts, but there is some criticism of this, even from developers themselves. In a tweet in March 2021, Litecoin founder Charlie Lee explained the concept of NFTs using an analogy involving the “Mona Lisa.” Lee said that an NFT is like a certificate of ownership for a masterpiece by Leonardo da Vinci, signed by the painter himself. While you may not be able to replicate this certificate, you can copy and own the painting itself in the form of prints, leading Lee to question the true value of the ownership certificate.
The Impact of Gas Fees
Each transaction on the blockchain is approved by solving complex mathematical equations by computers. In simplest terms, those involved refer to the energy used for each calculation as “gas fees.” According to Ethereum, gas fees help maintain the network’s security, and by charging fees for each equation on the network, the regulation remains spam-free. Thus.
Know What You Own
Regarding the NFT market, there are many questions about how licensing laws and intellectual property rights apply to them. So you bought an NFT, but how do you know what rights you obtain with the digital asset?
What NFTs Mean for Creators
For creators, NFTs provide another avenue to monetize their work.
Not Everyone Hits the Jackpot
For those seeking to make big profits from selling NFTs, Fowler stated she does not agree that NFTs fulfill the democratization of art. These massive sales tend to happen for artists who have already gained media attention and a fan base, according to Fowler. Furthermore, not every artist can go to auction houses. Thus, the opportunity is very limited.
Consent and Intellectual Property
Creators need to be aware of the content that can be turned into NFTs without encountering legal issues.
Source: https://www.thebalancemoney.com/blockchain-nft-wtf-5180324
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