A digital artwork worth 92 million dollars What do you know about NFTs technology?

The technology of non-fungible tokens (NFTs) appeared in recent years, when blockchain technology and digital currencies united with art, to achieve together a technology that confirms the originality and uniqueness of artwork, and to create out of nowhere a digital art market that exceeded the $41 billion mark last year.

In the past two years, the popularity of non-fungible tokens has grown tremendously, and news of this technology is following us almost everywhere, especially since the past months have seen sales of many artworks in the form of digital jpegs worth tens of millions of dollars, as well as sharing Celebrities and global technology leaders at this digital event.

Given the huge amount of money some of these digital coins have made, it is certainly hard to ignore them. On December 2, 2021, the artwork known as (Merge) became the most expensive NFT ever sold, with a total cost of $91.8 million.

Unlike traditional paintings and artwork that may be forged or copied, and while the advent of NFTs has created a new way for artists and creators to display their creations or collections, art collectors can enjoy complete transparency and absolute security regarding the originality and uniqueness of their purchases.

The origin of the story

Non-fungible tokens (NFTs) are a non-hackable digital document stored using the blockchain technology that confirms a person's ownership of a unique asset in the world of digital art such as photos, music, videos, designs, and more. These tokens are distinguished from other cryptocurrencies such as Bitcoin and Ethereum in that they are not exchangeable, for example, you can exchange Bitcoin for another currency and get exactly the same value, but if you exchange NFTs, you will get something completely different.

NFTs debuted in 2014 at an event at the Museum of Contemporary Art in New York, when digital artist Kevin McCoy gave a presentation that included the launch of what was called “Quantum Digital Graphics” at the time, while the first NFT project was launched in 2015 on “Ethereum” Blockchain” (the Ethereum blockchain), and interest has increased with the increase in interest in cryptocurrencies.

During the past year 2021, while the total cash sales of NFTs grew significantly, with sales of NFTs exceeding $22 billion, NFTs faced sharp criticism regarding the energy cost and carbon emissions associated with validating blockchain transactions as well as their frequent use in technical frauds. .

How are NFTs made? How do you buy and sell?

Any artist, talent or hobbyist can create their own unique NFT, all they need is to own a digital wallet with a small amount of Ethereum, and connect to the NFT marketplace where they will be able to upload their artwork and convert it into an authentic and unique NFT, provided they prove that they created or own the content legally.

NFTs can be monetized in two ways, one by creating content and selling it on one of the NFTs platforms, and another by buying work from the NFTs marketplace and then selling it back at a higher price.

There are many private platforms for buying and selling NFTs business, most notably the (OpenSea) and (Axie Marketplace) platforms that rely on the Ethereum digital currency for buying and selling, and (Treasureland) and (BakerySwap) platforms that rely on the Binance Smart Chain.

When purchasing an NFT, you need to specify the platform from which you will buy and the type of digital wallet you will need to store it, as well as the type of cryptocurrency you will need to complete the purchase. When selling, you have to find the platform that works for your artwork, then upload your content and follow the instructions to convert it to NFT.

Billions market

By the end of 2021, the market for non-fungible tokens (NFTs), which were digital artifacts linked to blockchain technology, had reached a value of $41 billion, according to Blockchain Chainalysis, which updated an earlier report.

According to the Financial Times, total NFT sales would be higher if digital holdings minted on non-Ethereum blockchains were included.

And over the past year, the value of NFTs has moved closer and closer to the traditional art market in which people buy and sell physical works, with the latest estimates indicating that sales of traditional art and antiques reached about $50 billion in 2020, which prompted the famous traditional auction market to enter The world of NFTs to find a foothold in the new digital art market.

In March, Christie's sold a digital artwork by American digital artist Mike Winkelman, better known as Beeple, for $69 million. Meanwhile, luxury fashion company Gucci has auctioned artwork from NFT after it previously sold clothes for an in-game avatar of Roblox.