NFTs or non-fungible cryptocurrency tokens, have been around since 2017 but this year they are taking the cryptoverse by storm. Essentially a NFT is like any other ERC-20 cryptocurrency coin built on the Ethereum blockchain, except for the fact that there is usually only one of a kind. Where a regular cryptocurrency is launched in the millions, or however many coins you want to write into your code, the NFT is a much more limited edition creation, usually just one or perhaps a set of 5 or 10, for example are issued.
original art piece made by me today, now in my collection as a NFT at opensea.com
Non-fungible means that the one is unique and not like any other token, which is the opposite of a regular fungible token, where one coin is equal to any other of the same set of coins. For example one Ethereum token is equal to any other Ethereum token. Just as one dollar is equal to any other dollar. The NFT is more unique, and is a way in which artists can “mint” their own original works as tokenized art pieces on the blockchain.
Once launched, each individual piece is now set with a name, value and history, from who created it, to who owns it, to who bought or sold it. This is the beauty of the blockchain technology. All the data and history regarding the transactions around this NFT are on record, so that no one can steal the idea or plagiarize it, or even make fake replicas. The original contract address and wallet are visible, adding full authenticity and verification to the digitalized and tokenized art work, for the foreseeable future.
Ethereum isn’t the only blockchain upon which one can launch a NFT. Hive also offers the same facility as Ethereum, and the beauty of Hive is that there are none of those exorbitant fees that the Ethereum blockchain demands. These “gas” fees are really chasing away the small retail investor, like those from countries with a weaker currency. There is no way you would want to pay for a NFT purchase and then pay the same amount again just in transaction fees. It’s like paying double the cost. It just doesn’t seem fair.
Well Ethereum is going to lose popularity if this obstacle is not dealt with soon. $5-$10 for transaction fees is just too expensive and implies to me that Ethereum is not working well. It appears to be damaged or broken. The gas fees are climbing with time and they will spoil the facility for the majority of the world, who live in third world countries, with weak fiat currencies. Just today I moved some Eth from MyEtherWallet and had to pay more in gas than I would have liked. As a result I will be reluctant to use MEW again. I also use MetaMask wallet to keep my Eth and other ERC-20 or ERC-721 tokens built upon the Ethereum blockchain, The fees to and from exchanges, or when building or trading NFTs, needs to be addressed as soon as possible.
Now as mentioned, the Hive blockchain will allow us to create NFTs and trade them for zero gas fees, with better speed of transaction, so I recommend it over Ethereum right now. Hive is a sleeping giant, unknown by the majority of crypto enthusiasts, but certainly more smooth and basically free. You can see mine and other artist’s works at www.nftshowroom.com where collectors can pay Hive coin for original art works.
On the Ethereum side, we can see artworks displayed in galleries like www.rarible.com (with their own RARI token, now near ATH) and www.opensea.com which are both connected to each other. Traders and collectors come from all over the world to display their original art works, or to trade their in-game items, cards or whatever they like. Items are all sold and bought in Eth, or other ERC-20 tokens. On the other hand, we have Hive, where art is being traded for Hive coin, but the outcome is identical. The Hive format and style appears better simply because they do not charge any gas fees.
Besides art pieces, traders also buy and sell cards and game items as NFTs. Some crypto Youtube influencers are now lunching their own NFT collections of crypto-themed cards. For example Ellio trades Crypto has just yesterday launched his SuperFarm collection at Opensea NFT gallery, which comprises of “CryptoPunk” collectible cards. Earlier examples of NFTs include the iconic CryptoKitties, and Gods Unchained series on Hive blockchain.
The idea of creating, owning or selling a one-of-a-kind original token is quire exciting, as it can be a collectible which holds value and can be sold later for a profit. Even multi-millionair crypto influencer and executive, Tyler Winkelvos, tweeted recently that NFTs are the next big thing. The concept is about to go viral, and may well be the next big thing after DeFi in the cryptocurrency sector.
No longer is art collecting only for the wealthy or only for those who have wall space to keep their collection. Now we can buy NFTs and collect them in our wallets, on MetaMask, or in our portfolio online at the showrooms or galleries mentioned. In the past fine art has always been a store of value, or hedge against fiat. Also tradeable collectors cards have gained and held value, and today they have simply become digitalized and more verifiable.
The amazing development in this chapter of the rollout of blockchain technology is showing us how items can be placed on the blockchain and held there as permanent goods worth a fixed value. It’s not only coins that can be coded into the blockchain and traded, but art works and game assets and collectible cards to – just for starters. We can turn anything into a token or the equivalent of money or a store of value, if we desire today, thanks to the technology of blockchain. I highly recommend doing some research into the field.
I just opened an account at nftshowroom.com on the Hive blockchain as well as opensea.com and rarible.com on the Ethereum blockchain. And I have bought or listed my own art works on both, either for sale as an investment or on display in my private collection. The artists among you may really like the concept of tokenizing your art works on these platforms mentioned above. There is now an easy way for us to buy and sell our wares via fixed price or auction, for almost any cryptocurrency asset, as well as store them. The record keeping feature of the distributed open ledger really helps to facilitate the industry today, in our digital era. And this is just the beginning.
The blockchain has come a long way since the early days of Satoshi Nakamoto. It is really maturing into a multi layered platform that can facilitate more and more services as time goes on and innovation arises. Check out the galleries mentioned above and find out more. You may be inspired and even able to earn a living as an artist if you’re so inclined. I certainly am. NFT means immutability, programmability and scarcity for your personally generated art pieces. It’s like creating your own token, and setting your price for your efforts. The idea is rich with potential.