Discover the fascinating universe of NFT Development, their benefits for art, the risks, and the dilemma of environmental impact NFTs have taken the creative world by storm in recent weeks, along with a lot of doubt about it. To understand the importance of this technology, we must first put some information into context. In February of this year, the Nyan Cat meme sold for $600,000. On March 1, visual artist and musician Grimes sold some of his videos for $6 million. And on March 11, a single jpeg file was sold for 69 million.
The creator of this jpeg, the digital artist Mike Winkelmann, better known as Beeple, in addition to all the fame and attention he has received in recent weeks, has become the owner of the third most expensive work of art sold by an artist alive. And what do these works have in common? They do not exist in the physical world and have gained ground in the mainstream. Nyan Cat, sold for 600 thousand dollars.
What is an NFT and what does it have to do with it?
Explaining in a simplified way, an NFT ( non-fungible token Development company) is a technology that allows the creation of a unique signature, a digital certificate that ensures the authenticity of something. It can be an image file, a song, a tweet, a text posted on a website, physical items, and various other digital formats.
Works with the development of NFTs and explains that the technology “is a form of decentralized certification”, which is why it is so important. In turn, in conversation with Domestika, the also Brazilian Bianca Pattoli, who lives in London and is the founder of Menta Land, a creative studio for NFT projects that makes tangible artistic works or marketing actions in the blockchain universe , points out: “ An NFT is the equivalent of the deed you receive when you buy a property. The deed contains all the information of this property (how many rooms, footage, garage, etc.). You only own the property if you have the deed. Since the deed does not have the “property itself, not even a photo of it, you only have a detailed description of what you have purchased”.
What are NFTs and how are they transforming digital art?
An NFT Token Generator is highly secure and cannot be duplicated, for this reason it is possible to know which is the original copy of digital art, for example. NFT certificates are built on top of Ethereum, a blockchain , and are traded through a cryptocurrency called Ether.
What is blockchain ?
In simplified technical terms, according to Binance Academy: “ Blockchain is a special type of database where data can only be added (it cannot be deleted or changed).” As its name implies, “it is a chain of blocks where the blocks in this case are pieces of information that are added to the database. Each block retains a pointer to the previous block and usually contains a combination of information of transactions, timestamps, and other data to confirm their validity. Since they are linked, the entries cannot be edited, deleted, or modified in any way, as this would invalidate all subsequent blocks.”
But what does all this mean in practice?
Through this technology, artists and creatives can generate a certificate of authenticity for their digital works, which previously could be easily copied, and thus finance their work.Column of New York Times transformed into NFT and sold for 645 thousand dollars. “NFT has an empowering and liberating potential for the artist. It’s the first time a digital artist can have this kind of insight into what they’re producing, after all, they’ve never had so much access to art and music, for example, but at the same time these arts have a low value. NFTs appear as a response to a system that is not working for everyone”, says Bianca Pattoli.
What are the risks of this technology?
The world of NFTs is interesting, fascinating and full of opportunities. However, it also presents some risks. One of them is the stock speculation bubble that is currently on the rise, but may fall or change at any time. For Ícaro de Abreu, any novelty presents a risk, since the scenarios have not been fully explored. “Who takes risks can lose? Yes, without a doubt. But also who takes risks gets ahead to reap the rewards,” he considers.Entrepreneur Seth Godin, a digital expert for more than 20 years, recently blogged that NFTs will be like Kindle books and YouTube videos: “The vast majority will have 10 views, not a billion.
The environmental impact dilemma
Another point of criticism not only for NFTs, but for all cryptocurrencies and technologies built on the basis of blockchain , is the environmental impact. Any blockchain performs what we call proof of work , which is a way of validating information on a network, using extremely high processing power to solve complex mathematical calculations and ensure that a block cipher is valid.
These processes can be transactional, which write or generate blocks, or miners, which verify the validity of a block. The advancement of technology means that ever more powerful processors and computer parts are needed to extract this information, which in the end leads to enormous energy consumption and unprecedented environmental impact.
