NFT is a unique non-fungible token, it is a record in the blockchain. Not long ago it was used only for the art trade, but recently these unique tokens are gaining more and more popularity in all spheres of human civilization and soon will become an integral part of our life. Let us look at the current use of NFT.
Basic NFT is not complicated at all; for this reason, it attracts inexperienced and uneducated community members. This has pros and cons: on one hand a lot of smack and unfinished projects – on the other you can find pearls in the stack of garbage.
It seems like NFT has become an irreplaceable part of the art business. Both artists and their clients have an opportunity to fix their ownership and do not care about destroying or faking their piece of art. More to it: an artist now has an option to program payments and receive royalties every time the piece of art is resold. Recently it was just a dream!
Digital art is now sold for millions – equally to traditional art. To give you an example: in 2021 American artist Beeple joined the list of most expensive living artists by selling his painting «Everyday: The First 5000 Day» for $69,35 mln at Christie’s.
Music, Video, GIFs
Probably the most important advantage of NFT for audiovisual artists, as opposed to centralized platforms, is total independence from the market monopolists. Many are trying it now – quite successfully. Kings of Leon rock band has recently published its music on the blockchain; in February this year Mike Shinoda has collected $30 000 USD on NFT auction.
Another rather widespread activity among internet users is creating unique tokens of GIF animation. These are becoming popular collectibles. Just to give you an example: Nyan Cat animation created by Chris Torres in 2011 was viral for years. In 2021 it was sold on an internet auction for $590 000 USD.
Game developers have now an opportunity to sell inter-game assets via NFT. A token can be a character, customization, etc. NFT can also be used in the VR world. Metaverse, for instance, allows creating objects within virtual space and even interfering with them – this is bringing us very close to the establishment of Web 3.0.
NFT as a future of identification and certification.
All kinds of professionals is looking for the use of NFT for their business, for their industry. The idea of recording personal documents on NFT is gaining popularity. This could be passports, diplomas, certificates, personal health history and you will be able to share it with your employer, your doctor, and so on. Besides, that NFT tokens can give you an instrument for real estate deals: you can break a deal without an agent, without a middleman. NFT can be your reputational certificate in the crypto world to reflect your “value” for DAO.
NFT penetrates all areas of human behavior, and the choice of storage and management is becoming increasingly important. The idea of storing big volumes of data on the blockchain has drawbacks; the main ones are high costs and problems in data management. As the result, more and more users are considering alternative ways of NFT storage, placing their data in centralized and decentralized storage.
Centralized data storage
A popular way for storing media is URL address, which is placed in NFT and leads to one of the centralized services. If you choose this method, you should be very confident with the policy and functionality of the platform as your data security is in hands of the platform management. Here we see potential risks for your data: it can be deleted, modified without your permission or it can be hacked.
Decentralized data storage
Decentralized storage is a technology, which stores users’ data in a network of other users’ gadgets all around the world. The most popular solution for it is IPFS, launched in 2015, but it does not stimulate users’ to rent their disk space, service is not that stable, safety and access to the files are not guaranteed.
However, there are projects like DeNet which offer a new type of decentralized storage, already capable of safely storing any files, apps, or NFTs. This solution stores all the data in the form of encrypted fragments, so only the owners have access to their files.
At the end of the day, the user is one to decide which storage, which approaches to use, which storage is the most convenient for them. Still, it is important to know that there are innovative teams in the market that spotted problems of NFT storage and are offering solutions.
Rafik Signatulin, co-founder & CEO of DeNet
DeNet is building an ecosystem based on decentralized data storage. DeNet targets users who want to have the convenience of Google Drive-like experience, high data security of services like ProtonMail and DuckDuckGo, and affordable product price. DeNet is also a perfect solution for NFTs safely storage.