The beginning of 2021 was marked by an unprecedented high interest in nonfungible token, or NFT, technology in various fields, the peak of which occurred in March. Nowadays, news about art deals with NFTs appears every day. What is more interesting is that NFTs are becoming fashionable among people who were previously ignorant of crypto.
Examples of how the NFT mania is reaching its peak can be seen through Beeple selling his art piece for almost $70 million and the likes of the Hermitage Museum in Saint Petersburg, Russia, announcing that it will hold an exhibition of NFT art in 2021.
What is the reason for such interest in NFTs, besides the hype generated by celebrities supporting the technology? Can a regular crypto enthusiast actually engage with NFTs in a user-friendly way?
So, why are NTF platforms developing so quickly, and what exactly are they? Here’s why NTF platforms are becoming crucial for attracting the art community, how these platforms actually work, and what they can offer their users apart from just being a type of marketplace.
The whole point is in the NTF itself, in its uniqueness. It cannot be replaced, faked or divided. The author of the token can prove their ownership, or the fact that a transfer of said ownership has taken place. That is, the owner of such a product can tokenize it by releasing an NFT, assigning a price to it and putting it up for auction. The buyer of such tokens receives the right to own and dispose of the goods, while information about this is recorded on the blockchain.
Operations with tokens are obviously cheaper, easier and faster than operations with real objects, although platforms for creating and selling NFTs have just begun to develop. However, NFTs are not completely covered by law, and proving ownership in terms of intellectual property rights may be challenging. Yes, unfortunately, not everyone accepts that blockchain is a legal record-keeping method.
What rights does the buyer have who spends their…