NFTs are more than just digital art

Unprecedented tokens, called “NFTs” for short, have attracted a lot of attention over the past few months. Many brands are entering the NFT world, from Givenchy, a French luxury goods company to the National Basketball Association (NBA). Their acceptance this year was so widespread that even the Collins Dictionary chose the term as the “Word of 2021.”

What you read below Note From Mitch Liu, CEO of Theta Labs Foundation and Founder of Theta Network, is one of the most successful digital currency projects of recent years. In this memo, Liu examines the critiques of the nature of NFTs and seeks to explain the applications of digital ownership to audiences unfamiliar with the field.

Over the past 30 days, nine of the top 10 sales in the NFT market have belonged to the Bored Ape Yacht Club and Cryptopunks, indicating that the vast NFT market has not yet caught the public’s attention. As a result, the mere fact that many have turned their attention to NFTs does not mean that people have fully embraced it.

If you’ve heard about NFTs in the news, most likely they were related to the ipat Club or Cryptopunks board suite. Last year, 101 sets of ipat Club board NFTs sold for $ 24 million and a cryptocurrency sold for just over $ 12 million at Sotheby’s. Despite the myriad of NFT projects being launched on a daily basis, there are still some old, well-established tokens on the market that add value over time.

Many media outlets refer to NFTs as assets to make the rich richer, and like digital spells that encourage celebrities like Jimmy Fallon, Post Malone, and Eminem to pursue the field. . In other words, when a particular form of asset is introduced to the market, these people rely solely on this forecast to predict that their prices will rise in the future and therefore invest in them. This can be a disadvantage for NFTs; But there are other reasons for the opposition. Many people see no reason to pay attention to unparalleled tokens and believe that using these tokens is basically meaningless. Of course, this theory is completely wrong and can be rejected.

It’s not hard to see why people outside of digital currencies continue to struggle to understand the concept of digital assets being “unparalleled.” Many people who have ever clicked right to download a photo or video and used the “Save As” option find this form of digital ownership strange.

Thus, coverage of NFT news in media unrelated to digital currencies often discredits them; But this is not necessarily true. The technology behind NFTs is innovative and has tremendous potential for use in many areas. NFTs allow gamers to own and resell assets in video games, allow individuals to register full or partial ownership of physical assets, and distribute royalties on works of art such as pieces of music more fairly; But there are other uses for this emerging concept of digital ownership.

The idea that a code can capture the uniqueness, originality, and origin of a home, a virtual character, or a piece of music in a decentralized, open, and secure way is a great idea. Innovators will certainly use this potential for long periods of time. Many businesses go beyond this and use it in the real world by adding new features to unparalleled tokens. They use unparalleled tokens in granting membership fees to various collections that provide ongoing value to the owners of a particular NFT.

Advanced technology usually does not require high-value tokens. The TheDDrop NFT market, for example, works with celebrities such as Samsung, Katy Perry, and Dionne Warwick to make their NFTs more valuable. The goal of these collaborations is to enable unparalleled tokens to be useful to the real world, or as members of the digital currency community call them, as a “practical” token.

Also read: NFT build tutorial; How to sell our unique tokens?

Contrary to some critics’ claims, this does not mean that idolatrous tokens that do not have these uses are useless. The value of a work of art should not be underestimated because it has nothing but the artistic theme or the different community in which it appears. The value of NFTs for projects like Cryptopunx that users buy to put on their social media profiles should not be underestimated. Just like the currencies we use every day, many people agree that NFTs are valuable; Hence they become valuable. If a community of collectors and enthusiasts is willing to support an NFT project because of their visual appeal and shared values, this support is considered a rewarding activity.

The widespread acceptance of NFTs faces challenges, one of which is climate change. However, one of the encouraging developments is the increase in the scope and number of projects that not only do not produce carbon pollution, but also reduce carbon emissions. Proof of Stake algorithms protocols, such as Theta, use less than 1% of the energy required for a similar transaction in Proof of Work protocols, which reduces most environmental concerns about NFTs. NFT manufacturers and customers are aware of the concerns, and this is a good thing.

People sometimes ignore the news, and in some cases this is due to a lack of proper understanding of the technology. If so, the digital currency community deserves some blame. Activists in the digital currency community are often too isolated and reluctant to explain events in this area to outsiders. Sometimes this is for personal gain, and in some cases it is simply because it is often very difficult to explain. Many reporters outside the digital currency space can also do better by explaining the potential of this technology more clearly.

Most likely, NFTs will become so common one day that the term itself (proverbial token) may no longer have the same use as it does today. Instead, we will talk about ownership and the technologies behind it.