In the huge information flow today, many ideas, events and projects appear and disappear. It is curious that when almost no one knew about some trend a year ago, six months ago they talked about it from all irons, and now no one remembers it at all.
Something happened in 12 months with NFT. An interesting and unusual technology shot out last year, and since the beginning of the year, interest in it has been rapidly declining.
Everything related to cryptocurrencies and detection has been found to persist for a long time, but strange phenomena quickly leave the news feeds and headlines as quickly as they happen there. Invested in shares investors will not soon appear in plus.
We are currently looking into the reasons behind the success and skyrocketing demand for NFTs.
What is NFT and how it appeared
NFTs (non-fungible token) is a non-interchangeable or incremental digital unit of account for some unique object. Such a token can be assigned to a picture, video, photo, song, tweet or any digital object.
With certain points, such as steel digital records, objects are selected that emphasize the fact of owning some content.
From ordinary property rights, NFT owns its cryptographic property. The token is found in the blockchain, making it almost impossible to steal or fake it. All data about the purchase, sale and all owners of NFTs will be securely observed on the network.
Experiments with encrypted NFT tokens are being used as early as 2012. In the fall of 2015, a game project was launched Etheriawho developed ownership of one of the special hexagonal slabs using NFT.
Later, there were other projects that display the target images in a collection and resell them via NFT.
For several years, the technology was just an accompanying option in the cryptocurrency market and did not arouse much interest among traders.
Things started to change in 2020 when the value of all NFT amounts increased and increased by about $250 million. In the first three months of 2021, users spent another over $200 million for operations with tokens.
Why NFT has become a subject of study
The period from the beginning of 2021 to the beginning of the year is considered the peak of the NFT value. Then comes the process of transferring material representations to the digital environment with limited use of NFT tokens.
The fashion for this was brought by the famous British street art artist Banksy. He painted a picture Morons (white), created her digital routine and then burned the original live. Later, the NFT, confirming the ownership of a digital copy of the painting, was sold for $95 thousand.
At the beginning of last year on the Foundation platform for unpretentious animation Nyancat managed to help out $590 thousand.
The owner of the famous meme decided to put up for sale NFT in honor of the 10th anniversary of the GIF.
Later famous auction Christie’s put up for auction a digital lot for the first time, the items became collage paintings First 5000 days (Every day: first 5000 days). Its contributors by an American artist of 5000 can jot down works that have been corrected daily since 2007.
Such a 14-year work (or rather, his NFT) was purchased for $69.3 million. Bidding reader with 100 dollars. At the moment, the NFT token of this lot is considered the most expensive.
To the point: 10 Pictures Sold as NFTs for Millions of Dollars
A series of events has brought a lot of attention to the NFT market. it was considered exclusively in videowhen video works created in electronic devices were sold on different platforms.
Examples of so-called procedural art emerged, where computer algorithms and neural networks were used to create an arrest.
Then the NFT started actively application in the gaming industry. Some projects have used tokens to protect content ownership. It was possible to purchase an NFT for a powerful sword, an armor-piercing machine gun, or a high-speed car.
Some games and outliers make up the entire process of creating NFTs and then reselling them. Users verifying the NFT token ownership of a gaming site, virtual pet or location.
Luckily, major gaming platforms have done without the use of NFTs. Company Valve banned adding components to distributions via cook for a couple projects, Ubisoft first announced the use of NFT in its own games, but after a faucet of negative user feedback, removed all mention of it.
A later study of major game development companies found that more 70% no point in implementing NFT and I don’t want to intertwine gameplay with flying.
NFT in nature means nothing
Although in the digital environment, owning an NFT means that in reality it does not provide any advantages or privileges. The NFT token has nothing to do with intellectual property copyright at all.
The owner of the NFT does not have any rights to own the object. NFT is not an associated object from use or use.
The same gif Nyancat without problems to have fun on the site, educate, copy or use as a screen saver on your smartphone. NFT owner cost $590 thousand only the fact of token ownership can be confirmed.
Why is NFT less and less remembered
On the wave of a large number of incomes on NFT. The token of the first ever tweet was sold, Elon Musk songwriter about NFT and wanted to sell her token, Quentin Tarantino tokens for interesting scenes that were not included in the final cut of the tape “Crime novel”.
Many began to massively play simple applications to receive NFTs in the hope of selling tokens for big money. Hundreds of investigations and manuals have appeared on the net, which can probably be placed on exchanges.
Thousands of schoolchildren took to draw pictures in Dyeto sell them for cryptocurrency.
Users of social networks and popular applications did not lag behind. NFT decided to implement in Instagram, the ability to create and sell tokens that appeared on VKontakte, Twitter allows the use of NFT avatars for users.
Token storage wallets have been added to some popular apps.
Along with this, all the problems and shortcomings of technologies began to surface.
Firstlywhen creating an NFT for some collection no real ownership assumed on him. This is open to fraudsters creating and distributing tokens protected from actual non-ownership of them.
Authors of drawings, animations and videos with amazing properties that are sold by NFT without their knowledge, respecting their work.
SecondlyNFT tokens have very strange pricing. If in the art world there are generally accepted assessments of objects, then in the NFT market everything is very opaque and unstable. To sell a token for a large amount, someone must advertise it, create a hype around it or a planned promotional advertisement.
A well-known figure or a public figure will sell NFT without any problems, but an ordinary artist is unlikely to help out for a lot of money, no matter how talented he may be.
ThirdlyNFT often does not represent real value and has weight only in the approximation containing it. To give any benefits to the owner of the token can be in the environment or some metaverse.
Fourthtechnology has been criticized for high energy costs and the strong carbon footprint that comes with NFTs. This is not to the liking of both environmentalists and energy business owners.
Criticized NFT is not the last person in the world of technology Bill Gates.
Request dynamics “NFT” in Google Trends
In early 2022, interest in NFTs began to plummet. Average price for tokens decreased from $1400 to $400-450. Decreased and associated commissions on the network Ethereum.
NFT activity on all major selling trading platforms decreased by approximately 70-75%. The number of profile files in all search engines is significantly controlled.
Ordinary users have probably played enough of the possibility of creating paintings or reselling others, and investors do not have the potential in a niche that is no longer the most developed.
It seems that NFT needs to find a more useful application or come up with a deep specialization in tokens. Without this interest in time and somewhere will fade away, burying a curious, but not yet safe, hasty thought.
Source: Iphones RU
