Shared by the editors of World Chain Finance, with the rapid decline of market value and popularity, many people question the durability of NFT as a technological and cultural trend. Are they just there? The speculative assets doomed to disappear when the NFT market foam bursts? After all, the public doesn't know what NFT is for? The following content will answer for you.
1、 Value of NFT
If you visit passers-by randomly on the street and ask them "What is NFT", what kind of answer will you get? Is it the boring ape with strange price? Twitter's new avatar feature? Confusion about cryptocurrency? Is it the name of a famous person? The word "foam"?
Practicality is not the real meaning of current artistic or artistic NFT. After all, this is not the standard for us to measure the importance of works, such as Rembrandt's or Damien Hurst's physical art, Mozart's or Beatles' music, Faberge's eggs or Birkin bags and other luxury goods.
An important way to explore NFT is to regard it as a new medium for creating works of art and collections. Over the centuries, technological innovation has irreversibly changed the way art works are produced and displayed. From oil painting to electric guitar to photography, NFT is a part of this long history. NFT will indeed become more and more practical. NFT helps address key challenges in the traditional art market, such as traceability and royalty payments.
Thomas Hoving, former curator of the Metropolitan Museum of New York, estimated that about 40% of the collections he inspected (including many of the museum's own collections) were false, false or wrong. Although many people question this number - even the false definition - it is clear that there are many problems in the traditional art market. Many issues are related to traceability, that is, the production process and the owner of the artwork. Traceability helps to determine the authenticity and value of the artwork.
With NFT, the source information will be recorded on the blockchain and cannot be tampered with. Ownership - at least determined by the blockchain address - is public and can prevent forgery. Strong source information can also help solve other serious problems in the art market, such as money laundering.
There are countless stories about artists who were poor before their death, were not appreciated, and became famous after their death, such as Vincent van Gogh. These stories remind people that artists often suffer losses in the art market. In the United States, the sales of artists' works in the secondary market are generally free of royalties. NFT royalty payment can be executed automatically. But perhaps more importantly, artists can, in principle, stipulate a series of terms for the future sale of their works.
For example, the artist can decide that her NFT maximum price does not exceed 1000 dollars; Or she can exercise the copyright ownership of France, that is, the artist still has a certain degree of continuous control after selling the work. In some cases, they even have the right to destroy some buyers who may object to the creator control of NFT seed creation, but the transparency of the blockchain system can ensure that all participants can make choices in an informed manner.
4、 Problems in NFT market
The current NFT market is full of various problems. Unauthorized copying is rampant, as is false trading – that is, manual trading volumes to stimulate sales. The file integrity of the NFT ecosystem may become a time bomb, because many content stored in the NFT paid cloud service will disappear if the payment is invalid.
Another big problem is the intrusion of robots. NFT is usually sold by air drop, that is, thousands of NFTs are sold at a time. When a very popular air drop activity is going on, some conspirators often use robots to snap up NFTs and resell them for profit. Facts have proved that it is difficult to actually implement user purchase restriction to achieve fairness.
However, it is gratifying that the blockchain system is constantly developing, enabling people to prove their identity and show their unique image while protecting privacy. Blockchain is committed to implementing a privacy protection system called "decentralized identity", which is essentially a user control credential.
Imagine that you have a digital driver's license and selectively display relevant information on the Internet. In addition, decentralized identity systems will be allowed to enforce purchase restrictions in the NFT market. A strong identity system can also ensure that people buy from legitimate creators, not impostors NFT.
Finally, the NFT market can also contain a "policy engine" to enable creators to shape the life cycle of their works in a rich way. The creator may set conditions for sale and resale; Let them NFT full of vitality; Offer discounts and rewards to fans; In NFT, like what galleries do in the traditional art market, we can cultivate a group of fans. In addition, the policy engine can also solve these problems, such as "speculative pricing and investment mentality".
5、 Other values of NFT
Human beings are migrating to the Internet, and more and more people are immersed in the digital content and visual experience known as the meta universe. Young people are giving up real property. Many technical experts believe that NFT will represent all commodities in the virtual world, from land to equipment. No matter in what form, they will shape our experience in the meta universe.
NFT also has many other applications, such as commodities representing reality. In the future real estate market, apartments can be sold as NFT. Nike (NKE), Time magazine and Tiffany (TIF) mainstream companies are also using or releasing NFT, which also provides a richer event ticketing experience system. But don't make mistakes. That doesn't mean everything is fine with NFT. It is undeniable that there are fraudulent sales and artist identity theft in the market. Therefore, community-based technical tools and consumer protection tools will be very important.
To sum up, NFT will continue to develop in a powerful and exciting way. Whether you like it or not, they - or similar things - will always be a cultural force. NFT is a technology product defined as frivolous, luxurious and irrational. But if you have a deep understanding, you will find that NFT will have more room for development, and all this is happening.