Everything you need to know about NFTs and cryptocurrency

July 2, 2021

6 min reading

Opinions expressed by Entrepreneur the collaborators are his.

Has your news source been flooded with articles, news, and podcasts about NFT?

Did you know that an NFT by artist Beeple, recently sold for $ 69 million at the famous Christie’s auction house, while a rare CryptoPunk was sold at Sotheby’s for over $ 11.7 million?

Are you still in the dark as to what NFTs are? Why does everyone seem to be obsessed with them?

By the time you finish reading this article, you’ll already know about NFTs, the blockchain, and cryptocurrency and how they can affect you and your business. You’ll see why you need to look at it because these digital currencies are here to stay and can change the way music, media, intellectual property and property are managed.

Related: 10 Post-Pandemic Opportunities to Grow Your Business in 2021

What is an NFT?

An NFT is a non-fungible token. A non-fungible token is described as “using relatively new technology that certifies the authenticity and ownership of a token through a digital book of all its past transactions.” In other words, a chain of blocks, which is the backbone of the cryptocurrency.

This means that any object can be “wrapped” in a digital package and authenticated with a unique signature that certifies its authenticity and rarity.

What this means for you is that you have the opportunity to certify that a unique object or work of art is authentic. It can be used for anything alarm for easy transfer of ownership. There are an infinite number of applications for NFT.

This technique is gaining huge popularity because it is very flexible in determining and proving ownership of an asset.

The digital world is exactly the same as the physical world, as certain things are more valuable than others. It is also a means to great creativity. The entire music industry has moved into the digital world.

Brick and Mortar record stores are scarce, as it’s not a convenient way to try out music, but with digital platforms like iTunes and Spotify it’s very easy to try and download everything you want instantly.

The rules governing property in the physical world do not apply to the digital world. Creators of physical things have been at risk in the digital world because it’s easy to copy anything.

How do you know if an NFT is real?

NFTs are a digital version of the property.

The word “Non-Fungible” means one thing. On the other hand, the most expendable in the world is an American bill of $ 100. If we look at world trade, 85% of transactions are made in US dollars because it is expendable. $ 1 gets something, no matter where you are.

Non-expendable is the opposite because there is only one. You can have copies, but the property belongs to one person.

That’s how digital artist Beeple sold his NFT to Christie’s for $ 69 million.

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How does the blockchain factor intervene?

Without a blockchain, you have no tokens or non-consumable resources because you cannot prove who the owner is. The blockchain is absolutely crucial. You had to have it in the digital world or there would be chaos because you would have no way to prove the authenticity of a “single”.

In accounting, we use a ledger system that determines where the money comes from or where it is spent. All transactions in a business are tracked. In blockchain, there is a unique address that determines where something comes from and where it is going. This chain of blocks is played and thousands or even millions of computers, so it can not be counterfeited. One of the reasons why cryptocurrency is so powerful is that neither it nor the black chain where all records are kept can be easily forged.

Some of the handy apps are if you have a digital asset, there is now a mechanism where you can set up a rule in the blockchain to get contract revenue.

For example, every time someone sees a work of art, the owner could get a fraction of a penny per display. If someone listens to a song that is owned by someone, they will get a fraction of a penny. A digital contract regulates the rules and makes this happen automatically.

For a creator, this is a gift from God. If a digital work of art is embedded in a wall of a museum or website, or if a service such as Apple Music or Spotify causes a listening event, a smart contract can be set up to schedule a daily payment directly to your bank account. This means that there are no longer any maneuvers and manipulations that have taken place since the beginning of time in the world of music, film, literature or the art business.

We pretend to be a music artist or any kind of intellectual property creator. You can go out into the digital market and say, “I’m looking for partners. I’m going to create something I can invest in. ” In the blockchain, every time someone reads it, you will be charged. You basically become the owner of a business.

This will turn the whole world of fundraising upside down. You can build this mechanism to pay your partner’s dividends and it will no longer go through Wall Street. This will end up happening with pretty much everything.

I believe it will change the license, patents, ownership and use of the software and music.

There is also Second Earth. The best way to describe it is that they have divided a digital version of the Earth into billions of places where properties can be bought. What does this mean and why is it important? I recently bought some “land” that my son talked to me about and that increased its value by 20% in one week. People go crazy buying virtual real estate right now.

Why should you worry? As virtual real estate, virtual billboards, advertising and games will begin to be used. You will be able to play games on “Earth” that you can see through augmented reality glasses or virtual real life reality.

These are universally accepted properties in which “applications” will be built and in the very near future with augmented reality glasses (which are just around the corner) instead of placing billboards on physical streets, there will be virtual billboards able to lease. Anyone who wears glasses will see them but they will not exist in the physical world. No pollution advertising. Woah.

I recently posted a podcast episode with Dan Sullivan on this topic. Check it out here.

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