For people just now hearing about NFT’s they might wonder what even are they? In short NFT translates into: “Non fungible Token”. Fungible means replaceable. So, in other words, NFT’s are unique tokens which you can buy and trade online. Hearing this, some may believe it is a grand new idea. But, in actuality it is just another form of collectables. Collectors have existed since the ancient times and collecting is something engrained in human psychology.
NFT’s are just the new trend in terms of collectables and it comes in a different medium, the internet. NFT’s are also inextricably linked to blockchain technology. They use blockchains to record images, videos, writings, anything that could be transformed into a collectable, including virtual land. Surging prices and hefty sales of digital goods that “don’t exist” has left many baffled. This trend however doesn’t show any signs of abating.
Just last year, in October 2020 art collector Pablo Rodrigues-Fraile spent almost $67 thousand dollars on a 10 second video that he could have watched for free online. In March 2021 he sold it for $6.6 million dollars. The technology behind making these tokens unique (non fungible) is exactly the blockchain servers which issued the era of cryptocurrencies. Blockchain technology allows the items to be publicly authenticated as one-of-a-kind. Traditional online objects can be endlessly reproduced.
Crypto Lender Nexo Launches NFT Lending Desk, Loans up to 20% for Popular NFTs
In a surprising move On December 16, the blockchain-based lending platform Nexo announced the firm has launched a non-fungible token (NFT) lending desk. The company offered crypto-backed loans. It did this using tokens like bitcoin and Ethereum for instant funds. Now, Nexo is offering instant liquidity to NFT holders that don’t want to sell their NFTs.
On their blog, Nexo explains that NFT owners can get “instant liquidity without having to sell your precious NFTs.” At the moment the firm accepts NFT’s from two collections: Bored Ape Yacht Club and Cryptopunks. In the future, Nexo says they have plans to start accepting other NFT collections. In terms of credit withdrawals, Nexo customers can withdraw stable coins, Ethereum (ETH), and other digital assets.
The interest in the overnight billion dollar industry is growing mainstream. With lending companies making a move, NFT’s will become even more stable from their initial volatile situation.
The appearance and surge of cryptocurrencies and blockchain technology seem to usher a new age of online trade. Now with the Metaverse also making a show, the possibilities of the online market are soring sky-high. But the online world of trading collectables may seem to risky for some of more traditional investors. It could be that a combination of the online and real world could give the final push for NFT’s. With this push they can blend seemingly into the mainstream.
A Glimpse at Spellfire’s Gameplay and New Cards
Maybe you are an experienced card game player. Or you could be a fan of collectibles. Maybe you are just getting into NFTs or want to do so. In all of these cases, Spellfire Re-Master the Magic is a game to keep your eyes firmly trained on. The creation of a group of crypto developers, Spellfire is a blockchain-based collectible card game (CCG) that finally gives ownership back to its players, in the form of NFT-based cards.
But Spellfire creators recognize the nostalgia for physicals cards. This is why they created a physical counterpart to the digital cards to scratch that nostalgia itch and blend real life with digital in a seamless way. As it stands, Spellfire is a comprehensive package that manages to pack 30 years of history into a CCG fit for the gamers of today. Regardless of whether you feel most comfortable at a tabletop or in front of your monitor, there will be a method of play to call home.
This opens the door to a whole new world of possibilities in an industry that is just taking off. The recent growing interest in Spellfire’s new business model is a clear indicator that the combination of real-world collectables with a digital counterpart will not be just a fad. The potential of gaming NFTs is starting to come to fruition. In November, users spent 71% more on NFT game items, and Play-to-Earn games now account for close to 50% of all blockchain activity. Gaming NFTs have now been responsible for a staggering $1.08 billion of NFT trading volume.
Of course Spellfire is not unique with the idea of creating physical NFT’s. Auction house Christie’s announced the sale of a non-fungible token from artist Beeple for $28.98 million. The name of this particular masterpiece is HUMAN ONE. It is a 3D rectangular video sculpture with LED screens, and if the concept of NFT’s did not exist it would just be considered “regular art”. Just the branding of an art project as physical NFT seems to give it value.
The future of NFT’s
When normal life is disrupted, and during times of crisis, innovation is often triggered. In 2008 big banks knowingly gambled with their clients money in high-risk ventures, plunging the U.S. into a financial crisis. It was in the aftermath of this disruption that blockchain was developed, becoming a massive enabler of change to a broken system. Sure, NFT’s did not come as a result of a crisis or because people needed a solution for a problem but it still an innovation nonetheless.
Traditionally, a piece of digital art (or data) can be copied over and over again, leaving the creator, or purchaser, with no control over this duplication or way to validate the original work. Michael John Peters who has been working in fine arts for over a decade explains the importance of NFTs for the art world, “It is very easy to fake certificates of authenticity or replicate art. Some paintings that are exact in size and composition sell for drastically different prices depending on if they have provenance (a tracked history) and certificate of authentication.
For example a Picasso painting that had its provenance and authentication sold for 2.2 million dollars. Whereas a different Picasso painting that is the same size, composition and close to the same sale date, but without provenance sold only for 158 thousand dollars. NFT provides an iron clad indestructible proof of ownership along with provenance that will last for eternity. In the future every painting, both digital and physical, will have a NFT attached to it.”
In a sense NFT’s allow artists to bypass other restrictions and concerns and connect directly with the customers. This can happens because each purchase will be documented on the blockchain as unique and recipient and creator are clear. This transparency and overall control is what blockchains aim to achieve. It creates amazing opportunities for disenfranchised artists that had it so hard during the Covid-19 pandemic.
Cryptocurrencies, blockchains and now NFT’s as well as the infamous Metaverse are signs of a new age coming straight at us at incredible speed. It is up to us to see if we can adapt and go with the flow or try to swim against it clinging to the old ways.