Non-Fungible Token (NFT)
Non-Fungible Token (NFT) It is a special type of cryptographic token that represents something unique. Non-fungible tokens are therefore non-exchangeable. This is in contrast to cryptocurrencies such as bitcoin, and many network or utility tokens which are fungible in nature. The four main characteristics of NFTs is that they are unique, indivisible , transferable and with the ability to demonstrate its scarcity. NFTs have also come under fire, mainly regarding their high energy cost and carbon footprint associated with validating transactions on the blockchain, as well as their frequent use in virtual scams. Other criticisms are about the true usefulness of establishing proof of ownership in a sometimes extralegal, unregulated market. Games:
NFTs can be used to represent in-game assets, such as digital parcels of land, that are controlled by the user rather than the game developer. NFTs allow assets to be traded on third-party marketplaces without the permission of the game developer. play.
In October 2021, developer Valve banned apps that use blockchain technology or NFTs to exchange value or game artifacts from its Steam platform. Other uses: A number of Internet memes have been associated with NFTs, which were sold by their creators. Examples include Doge, an image of a Shiba Inu dog whose NFT sold for $4 million in June 2021, as well as Charlie Bit My Finger , Nyan Cat and Disaster Girl. Some porn stars have also tokenized their porn work, allowing the sale of unique content to their clients, although the hostility of the NFT markets towards pornographic material has presented significant drawbacks for creators. Tickets, for any type of event, have been suggested for sale as NFTs. Such proposals would allow event organizers or artists to earn royalties on resales. The first accredited political protest NFT ("Destruction of the Nazi Monument symbolizing Contemporary Lithuania") was a video shot by Professor Stanislovas Tomas on April 8, 2019 and minted on March 29, 2021. In the video, Tomas wears a gavel to destroy a state-sponsored Lithuanian plaque located at the Lithuanian Academy of Sciences in honor of Nazi war criminal Jonas Noreika.
Plagiarism and fraud: There have been examples of "artists having their works copied without permission" and sold as NFTs. After artist Qing Han's death in 2020, a scammer assumed her identity and several of her works became available for purchase as NFTs. Similarly, a seller posing as Banksy managed to sell an NFT allegedly made by the artist for $336,000 in 2021; in this case, the seller refunded the money after the case caught the attention of the media. A process known as "sleepminting" can also allow a scammer to mint an NFT in an artist's wallet and transfer it to their own account without the artist noticing. This allowed a white hat hacker to concoct a fraudulent NFT that had apparently originated from artist Beeple's wallet. The BBC reported on a case of insider trading when an employee of the OpenSea NFT marketplace bought specific NFTs before their launch, with the prior knowledge that they would be promoted on the company's homepage. NFT trading is an unregulated market that has no legal recourse for such abuses. Stolen digital artworks are often fraudulently sold as NFTs. In its announcement to develop NFT support for the Photoshop graphics editor, Adobe has proposed the creation of an Interplanetary File System Database to better ensure proper attribution of NFT art.