Nifties - Non Fungible Token (NFT)
will change the art market: Whether the current news on Cryptopunks or the fact, that the artist Beeple made a 69 Mio $ is just a hype or not, NFTs or at least the technology will be there in the future.
NFT is not an easy to understand concept and creating or buying an NFT is even worse: Bitcoin, Ethereum, Blockchain, Unlockables, warm or cold wallets, smart contracts, single ERC-721, multple ERC1155 - pretty confusing - eh? Correct - it is a complex thing.
- Simplified an NFT represents the ownership of a photo, video, music or any digital file. Compare it to an paper of share (Aktienpapier), but instead of getting a paper of share, the NFT will be stored on the blockchain (a register of when the NFT has been created and when is has changed ownership from the seller to a buyer. As a share, the price of an NFT in- or decreases in price.
- While an NFT may represents a digital file only, it may be linked to a real world object. Namely the 1st buyer does not only get an ownership of the NFT, the buyer also gets a real world art print. The new owner will be able to sell the NFT, the print or both.
- Some NFT allow to link a royalty fee, for each sell, the artist or the creator of the NFT gets an defined % for each and every sell of the NFT.