NFT: when art meets the digital world

NFT: we hear about it everywhere lately. Non-Fungible Tokens are nothing more than the certificate of authenticity of a digital asset.
Simply put, they are the irrefutable proof that applies to unique digital objects such as crypto art, online games and digital collectibles.

NFTs are not interchangeable and this differentiates them from cryptocurrencies. In the art world, NFTs are used extensively, as they provide proof of veracity and authenticity of digital art. Without them, you run the risk of running into some scam on the web or buying an art object, believing it to be authentic when in fact it is just an unauthorised reproduction. The NFT market was worth a staggering 10.7 billion dollars in 2021.

How do NFTs work?

When you buy a digital asset linked to an NFT, you do not actually become the owner of the work, but you ‘buy’ the possibility to prove its authenticity. In short, a kind of right to the work.

Usually, the work in question is bought in the form of a digital photo or video, and then compressed into a sequence and stored on a blockchain. At this point, the work can be sold in exchange for a payment in cryptocurrency.

How to buy an NFT

To buy an NFT you need a blockchain, and usually this is Ethereum. In recent times, alternative solutions have arrived including Flow Blockchain, Binance Smart Chain, Solana, Cardano, Polygon, TRON and EOS. In order to buy or invest in NFTs, one needs a cryptocurrency holding, i.e. a digital wallet linked to a profile.
Each individual user can buy what they want according to the rate set by the seller, or alternatively participate in an auction.

What is the real advantage of buying them?

Unlike cryptocurrencies, NFTs are unique and non-replicable. This means that if you buy one today, it may become valuable over time – just like a unique work of art. But now for the cons. Because while it’s true that buying an NFT could be an interesting investment, there’s also a dark side.
To date, there is no way to verify that the seller of an NFT is the legitimate owner of a work. It is therefore advisable to check before buying a work in order to avoid fakes.
There is also the fact that NFT and cryptocurrencies are a little known reality, especially in Italy, and the market is still considered too ‘fresh’ and volatile.

NFT and digital art

NFTs are widely used in the world of digital art. Photographs, films, GIFs, everything that can be considered unique can be sold as if it were a real work of art to be collected.
Even a simple post. Jack Dorsey, the former CEO of Twitter, sold the first tweet in history in the form of NFTs, a transaction worth $2.9 million.

Today, NFTs can be used to buy music, jewellery, event tickets, coupons and video games. The year 2022 will be a good year for buying non-fungible tokens, and more and more industries will turn to crypto art. The risks will certainly need to be weighed up, but as this is an evolving reality, investing in NFT could be a winning move.

Anularis © 2020 - LUXURY SPORT RINGS

Via privata Pericle, 5, 20126 Milano MI  ·  Venice  ·  Italy

P.IVA 11975810968

📞 Phone +39 02.3831.9370

📨 Mail