The advent of cryptocurrency is one of the most talked-about technical innovations in recent times. Since the beginning of 2007, it has grown to prominence due to its unregulated market and its ability to be utilized across the globe.
Along with the rising popularity of Dogecoin as well as other cryptocurrencies, one of the biggest developments in the field of cryptocurrency this year is the advent of NFTs which are also known as non-fungible tokens. There are many aspects that aren’t well-known to the general public about cryptocurrencies and NFTs, that are changing the ways artists can sell their work.
Here Are Some of The Most Interesting Facts About NFTs.
1. The First Crypto-Currency to be Named After a Van Gogh Painting
NFTs are tokens that can be used as digital collectables which have no value in their own right. In 2017, NFTs were introduced by artist and programmer Ian Bogost who named one of his tokens after a Van Gogh painting called “Portrait of Vincent van Gogh, 1889”. The token was sold with the intention of creating a market for artwork via blockchain technology.
2. The Most Valuable NFT is Only Worth $4 Million
In December 2017, three paintings by Mark Rothko were auctioned off on Ethereum’s blockchain platform for over $43 million dollars! These paintings have been valued at over $100 million each prior to this auction, but now they’re worth less than $4 million combined! This is due to the lack of regulation and transparency in the market which is a result of the absence of the NFT.
3. The World’s First NFTs to be Sold on an Auction Site
In December 2017, the world’s first auction for NFTs was held on ArtEZ, a decentralised art gallery website. The auction was for a limited edition print by artist Tehching Hsieh called “In Front of an Open Door”. The print was created as part of a collaboration with cryptocurrency company Bancor and sold for over $400,000!
4. NFTs Can be Used to Buy Art Online
Artists are now able to sell their works online without having to worry about traditional payment methods like PayPal or credit cards. This is because NFTs can be used like any other cryptocurrency and can be exchanged through online exchange sites like EtherDelta which allow users to trade between cryptocurrencies using smart contracts on the Ethereum blockchain.
5. NFTs Can Be Used as Rewards for Loyalty Programs
NFTs can be used as loyalty points for different loyalty programs, like the ones at Uber and Airbnb. The tokens can be used to receive discounts and benefits which will encourage users to continue using a service even after they’ve stopped being members. The tokens are also useful in reward programs that provide discounts on goods or services but only when a certain number of users have been recruited.
6. NFTs Can Be Used as Software Licences
The use of NFTs in the gaming industry is increasing rapidly due to the ease with which they can be traded within a game’s environment. For example, players are able to trade NFTs for special items within games like Cryptokitties as well as items from other games such as Minecraft, World of Warcraft and Grand Theft Auto V!
7. NFTs Are Here to Stay
It is expected that NFTs will become more popular in the future due to their simplicity and their ability to offer value to different industries. The fact that they are able to be traded like any other cryptocurrency and can be exchanged between users using smart contracts on the Ethereum blockchain is a huge advantage.
8. NFTs Can Be Used as a Means of Payment
NFTs have been used as means of payment in countries like the United States, Switzerland, Japan, Italy and Sweden where they are accepted by various businesses such as restaurants, hotels, car rentals etc. However, in most countries, NFTs cannot be exchanged for fiat currency but instead, they must first be converted into another cryptocurrency before being used as a means of payment.
9. NFTs are Not a Public Utility
NFTs are not a public utility as they do not provide any form of real value to the community or the economy in general. This is why they cannot be used to pay for public services such as electricity, water and gas etc. However, NFTs have been used as a means of payment in countries such as Japan, Switzerland and Sweden where they are accepted by various businesses such as restaurants and hotels etc.
10. NFTs Can Be Used to Pay for Public Services
NFTs can be used to pay for public services such as electricity, water and gas etc however, this type of use is not very common at the moment because these utilities must first be paid for using other cryptocurrencies before being able to purchase these services with NFTs.
11. NFTs Can Be Used as a Means of Payment in Countries Where they are Accepted
NFTs can be used as a means of payment in countries where they are accepted by businesses such as restaurants, hotels, car rentals etc. However, this type of use is not very common at the moment because these utilities must first be paid for using other cryptocurrencies before being able to purchase these services with NFTs.
12. NFTs Are Not Recyclable
NFTs cannot be recycled and cannot be broken down into their component parts. This is why they have very little use in industries such as recycling and waste management.