The Amazing World of NFTs: Between Innovation and Controversy

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27 May 2024

In the dizzying digital world, NFTs (Non-Fungible Tokens) have burst forth like a storm, promising to be the next great revolution after the invention of the Internet. But what are NFTs really and why are they causing such a stir?

The Most Featured Brands in the NFT Universe

NFTs have attracted renowned brands looking to innovate and connect with their audience in ways never seen before. Among the most successful collections we find CryptoPunks, pioneers of the NFT movement, and Bored Ape Yacht Club, whose sales have reached millionaire figures. Big brands like Nike, Adidas and Gucci have also entered the game, selling everything from virtual sneakers to exclusive fashion experiences in the metaverses.

Advantages and Disadvantages: A Digital Double Edge

NFTs offer originality and ownership, allowing artists and creators to monetize their digital works safely and efficiently. Furthermore, the tokenization of tangible assets opens up a range of possibilities for investment and fractional ownership. However, not everything is rosy. NFTs also bring environmental challenges due to the energy consumption of blockchain technology, and raise questions about market volatility and the authenticity of the works.

How Much Does It Cost to Create an NFT?

The yield of an NFT can vary wildly, from a few dollars to thousands, depending on gas fees and the complexity of the smart contract involved⁸. Statistics show that sale prices can reach astronomical figures, reflecting both the artistic and speculative value of these digital assets.

An NFT, or Non-Fungible Token, is a type of digital asset that represents ownership or proof of authenticity of a unique item through blockchain technology. Unlike cryptocurrencies like Bitcoin, which are fungible and can be exchanged for another identical unit, each NFT is unique and cannot be replaced by another.

NFTs can be anything digital, such as art, music, games, or even tweets. What makes them special is the blockchain, which certifies the uniqueness and ownership of the asset. This means that when you purchase an NFT, you are acquiring a "digital certificate" that proves that you are the owner of a specific version of that digital asset, even though the file itself can be copied or shared.

In short, NFTs are an innovative way to buy, sell and collect digital assets, ensuring their authenticity and ownership with the help of blockchain technology.

In conclusion, NFTs are an emotional and financial roller coaster. For some, they represent the cutting edge of art and technology; for others, a bubble about to burst. The truth is that they have captured the world's imagination, and their story is just beginning to be written. Will NFTs be the future of art and property, or a fad? Only time will tell.

Creating your own NFT is an exciting and accessible process even if you have no prior blockchain or cryptocurrency experience. Here is a basic guide to get you started:

1. Choose your digital asset: It can be an image, a video, a piece of music or any other digital content that you own and that you want to tokenize.

2. Select a blockchain: Ethereum is the most popular for NFTs, but there are others like Flow, Tezos or Polygon that can offer lower fees.

3. Set up your digital wallet: You will need a wallet compatible with your chosen blockchain, such as MetaMask, to store your NFTs and cryptocurrencies.

4. Choose an NFT marketplace: Platforms like OpenSea, Rarible or Mintable allow you to mint (create) and sell your NFTs. Each platform has its own instructions and rates.

5. Create your collection: In the market you choose, you can create a collection and add your digital assets, defining characteristics such as name, description and properties.

6. Mint your NFT: Follow the platform's instructions to upload your file and complete the necessary information. You will then mint your NFT, which may require paying a "gas" fee depending on network congestion.

7. Put it up for sale: Once minted, you can put your NFT up for sale with a fixed price, auction, or bundle. You can also decide if you will receive royalties on future sales².

Remember that the process may vary slightly depending on the platform and blockchain you choose. Additionally, it is important to take into account transaction fees, which can fluctuate depending on network demand. Good luck on your NFT adventure!

NFTs have unlocked a world of fascinating possibilities and applications. Here I present some of the most interesting use cases for NFTs:

1. Digital Art: NFTs have revolutionized the art world, allowing digital artists to sell their works as unique and collectible pieces.

2. Collectibles: From sports cards to virtual figures, NFTs have created a new market for collectors.

3. Games: In gaming, NFTs allow ownership of in-game items, such as skins, characters and virtual land.

4. Music: Musicians can tokenize their works and sell limited editions or copyrights through NFTs.

5. Fashion: Fashion brands are exploring NFTs to offer exclusive virtual clothing and accessories.

6. Virtual Real Estate: In metaverses, NFTs are used to buy and sell digital properties.

7. Identity and Verification: NFTs can serve as unique identifiers to verify the authenticity of products and documents.

8. Film and Entertainment: Hollywood is experimenting with NFTs to offer exclusive experiences and additional content.

9. Tokenization of Physical Assets: NFTs can represent ownership of physical assets, such as works of art or real estate.

10. Education and Credentials: Educational institutions can issue degrees and certificates as NFTs, ensuring their validity and uniqueness.