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SCIENCE

제 10 호 Is NFT the Next Big Idea?

  • 작성일 2021-05-28
  • 좋아요 Like 3
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Kicker: SCIENCE


Is NFT the Next Big Idea?


by Nam-HoYun, Reporter

tree32847@gmail.com


  On March 4th, Morons, an original Banksy was burnt and demolished on a YouTube live stream. Then the group that held this event sold the digitalized art piece using NFT technology. The “digital” Morons was sold for 228.69 ETH(Ethereum), which is roughly $380,000 at the time. For comparison, the group bought the original piece for about $100,000. They claim that this stunt was to “bridge the world of physical art with NFTs.” 


<A burned original Banksy>

  Jack Dorsey, CEO of Twitter and Square also took part in the “NFT heat”. He sold his first-ever twit on Twitter as an NFT and made $2.9 million. He later announced that all the proceeds from the sale would be donated to GiveDirectly, a charity group financially supporting people in poverty. It seems that more and more people are catching up with the potential of NFT. So what really is an NFT, and can it be the next breakthrough technology?


<The first-ever twit on twitter by Jack Dorsey>



What is an NFT?

  NFT stands for non-fungible token. In other words, it cannot be replaced by something else, just like a plane ticket showing your seat. There is no way someone will have the exact same flight ticket and share the same seat with you. In comparison, gold, physical money, and precious metals can be traded for one another while you have the exact same value of it. NFT is usually considered as a digital asset that is combined with real-life object such as music, art, and videos. It is also common for people to buy NFTs with cryptocurrencies since they are on a blockchain. . Even though the original idea of a blockchain is to support fungible assets like Bitcoin, it has evolved to enable individuals to create their own crypto assets. Surprisingly, this technology has been around us since 2014.


How does it work?

  Because NFTs are on a blockchain, each NFT has a unique code that everyone on the blockchain system can see and confirm. Anyone can create their own NFTs, mainly using the Ethereum network. Inside an NFT, you can see its code, ID, relevant information, and its transaction history. Once an NFT is made, people can trade it like an asset, normally using crypto currencies. You also have to notice that the form of an NFT can be varied. From JPGS to MP3s, it can create almost anything into a digital, immortal token. Plus, there is no or near zero fee to make one. However, keep in mind that just because you “copy-pasted” a famous artwork to make an NFT, doesn’t mean that it should have some value.


<Addiction, an NFT by Ina Stanimirova Art>


Where can they go?

  The NFT market keeps growing and going places. More and more games are accepting and creating NFTs. Collectibles, such as NBA Top Shot, also have begun to be digitalized. Now you can collect the things you like and trade them without owning physical ones. Especially, art or digital art with an NFT is getting more traction.


<NFTs from NBA Top Shot>

  As mentioned above, anyone can create and trade one. It is like an art gallery that anyone can visit. It doesn’t require you to be famous, yet gives you more opportunity to showcase your project to the world. If you are interested in this, you can visit OpenSea (https://opensea.io/) and find out what the digital artists are making, or create one for yourself.


What are the drawbacks?

  Although it might seem flawless, there are some problems. First, just like all the assets on the internet, it is not safe from hacking. Some artists report that their NFTs were stolen, or even deleted. As the NFT market gets bigger, the more hackers will sneak into it. Second, it can be hard to clarify/claim who really owns an NFT. No one can stop someone using your image or picture to make an NFT. There’s no law regulating some behavior like this. Lastly, cryptocurrencies are highly volatile. Most people buy NFTs with cryptocurrencies. What they often forget is the fact that the price of cryptocurrencies goes up or goes down rapidly compared to other assets. Therefore, you have to keep in mind that trading NFTs to make a quick buck or making countless of low-effort NFTs is not a good idea, at all.



  This technology is here to stay. It has lots of potential, and it is open to everyone. As we navigate through the 4th Industrial Revolution, it will surely take a role in boosting new ideas and growing new markets. However, if you just keep focusing on the price, not the technology and possibility behind it, you are highly likely to waste your time just like the people who moved to California blindly chasing a few people who found some gold in the 1850s; many had to go home empty-handed.


Sources: 

https://www.bbc.com/news/technology-56335948

https://opensea.io/assets/0x495f947276749ce646f68ac8c248420045cb7b5e/1391710556552267091701954357746125411038643806995143974451967238939856601089

https://www.cardlines.com/track-top-shot-transactions/

https://edition.cnn.com/2021/03/30/tech/nft-hacking-theft-environment-concerns/index.html