NFT: when art meets the digital world

NFT: we hear about it everywhere lately. "Non-Fungible Tokens" are nothing more than the certificate of authenticity of a digital asset. Simply put, they are the irrefutable proof that applies to unique digital objects such as crypto art, online games, and digital collectibles.

NFTs are not interchangeable, and this feature differentiates them from cryptocurrencies. In the art world, NFTs are used a lot, as they provide proof of veracity and authenticity of digital art. Without them, one would run the risk of running into some scam on the web, or buying an art object believing it to be authentic, when in fact it is just an unauthorized reproduction. The NFT market in 2021 was worth as much as $10.7 billion.

How do NFTs work?

When you purchase a digital resource linked to an NFT, you do not actually become the owner of the work, but you "purchase" the ability to prove its authenticity. In short, a sort of right to the work.

Usually the work in question is purchased in the form of a digital photo or video, and then be compressed into a sequence and stored on a blockchain. At this poin the work can be sold in exchange for a payment in cryptocurrency.

How to purchase an NFT?

To buy an NFT you need a blockchain, and usually it is Ethereum. Alternative solutions have arrived in the recent period including Flow Blockchain, Binance Smart Chain, Solana, Cardano, Polygon, TRON, and EOS. To buy or invest in NFT requires a cryptocurrency holdings, i.e., a digital wallet as a wallet connected to a profile.

Each individual user can buy what they want based on the rate set by the seller, or alternatively participate in an auction.

What is the real advantage of buying them?

Unlike cryptocurrencies, NFTs are unique and non-replicable. This means that if we buy one today, it may acquire some value over time-just like a unique and unrepeatable work of art. But now we come to the cons. Because while it is true that buying an NFT could make an attractive investment, there is also a dark side.

For to date there is no way to verify that the seller of an NFT is the rightful owner of a work. Therefore, before making a purchase, it is advisable to do due diligence to avoid fakes.

Then there is the fact that NFTs and cryptocurrencies are a little-known reality, especially in Italy, and the market is still considered too "fresh" and volatile.

NFT and digital art

NFTs are widely used in the digital art world. Photographs, movies, GIFs, anything that can be considered unique can be sold as if it were a real piece of collectible art. Even a simple post. Suffice it to say that Jack Dorsey, former CEO of Twitter, sold in the form of NFT the first tweet in history realizing a transaction worth $2.9 million.

To date, NFTs can be used to purchase music tracks, jewelry, event tickets, coupons, and video games. So 2022 is shaping up to be a rather profitable year for non-fungible-token purchases, and more and more industries will rely on cryptographic art. Certainly, the risks will also need to be weighed well, but since this is an ever-evolving reality, it could be a winning move to invest in NFT.