What are NFTs and do they help us?
It’s all hot, trendy, swag and many articles on the internet are also devoted to it: NFTs. But what exactly are these NFTs? Are they really as swag as they say? What are the pros and cons? What should we take into account? And does it help us? We discuss it in this article.
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crypto week
This week Androidworld is all about cryptocurrency. We therefore declare this week ‘Cryptoweek’ in which we would like to make you world-wise in this digital world. We discuss useful apps, provide you with tip and explanation articles and also look at the ‘dangers’ that can be around the corner. In this article we are going to talk specifically about NFTs and we try to explain them as briefly and understandably as possible for you.
What are NFTs?
NFT stands for ‘non-fungible token’ and you can think of it as a kind of digital statement or as a digital certificate that a specific digital file belongs to you. For example, you can think of a video, a photo or a message that was once shared on a social media channel. You can buy such a digital file and you become the owner of this file. Please note: you are only the owner, but you do not get more rights. You can say that this file is yours and you can also record this in a so-called blockchain. This allows everyone to see that the file is actually yours, but you do not get any extra rights over this file.
Let’s take an example. Androidworld would like to sell our memorable Instagram post with Bernie. We then put this on some sort of NFT marketplace and you, as a big fan of Androidworld (or Bernie, too), buy this NFT. Congratulations! You now own this file. You can have this recorded and proudly show everyone that you actually own it. However, we, Androidworld, and actually everyone in this world, can still open, copy, send, edit and use this image. But you own the original file.
What’s in it for you exactly?
The usefulness of NFTs really has everything to do with ‘value’. You provide a digital file with (financial) value. And in many cases I mean real value. For example, if you go to Valuables by Cent, an example of such an NFT marketplace, you can see what astronomical amounts are sometimes paid for a digital file. And in some cases you can somewhat understand the valuation. Millions are sometimes paid for a physical painting, and the first tweet ever has perhaps as much historical value as Picasso’s Guernica, for example. After all, it is also a piece of history.
NFTs can therefore serve as a kind of evidence that something has real historical value, and can link it with a financial value. As the owner of such a ‘digital work of art’ you can now earn money. For them, and for those who like to buy art, NFTs can be interesting. In fact, Samsung already offers such an NFT digital art marketplace on its smart TVs.
But be careful!
So there are people who purchase an NFT stating that he/she is the relevant owner of a digital file, but for how long can they have this digital file? Because yes, it remains digital.
We take another example. If you have spent 250,000 euros for the first image that Google has ever posted, you will receive the NFT which states that you are the owner. This file from Google is a JPEG file, a file format for storing images in digital form. You can currently open this JPEG file on just about any laptop, tablet and/or smartphone and it is currently the standard for storing digital photos. However, it may be the case that in five years’ time we will have a completely different standard and JPEG will not be used and will no longer be supported in the course of time. And there you are with your 250,000 euro NFT…
In any case, we hope that you now understand the basics of NFTs and that we have made you a part of the world in this special digital world.
NFTs and Android
If you want to get to know the digital world of NFTs and crypto coins in a playful way, there are still a few NFT and crypto games in the Google Play Store. For example, think of Crypto Dragons and Upland. Games you could play to get an idea of how it works. During the crypto week you will encounter many more apps and games that have to do with NTFs and crypto. So keep an eye on Androidworld this week!
What do you think about NFTs and would you ever start? Let us know in the comments below this article.
Do you have any tips or ideas?
This week it’s Cryptoweek on Androidworld. Do you have a question about the topic we discuss during this theme week or do you have ideas or tips? Let us know in the comments below this article (also check our Android app). You can also email us via this email address or leave a message on Facebook, Instagram and Twitter† You can also ask us questions via this Telegram group. Would you rather send one of the editors a tip? Then you can too!
