The beginning of 2021 was marked by a unique mass interest in non-fungal technologies, or NFT, in various fields, which peaked in March. Today, news about technical transactions with NFT is shown every day. What’s even more interesting, NFTs are becoming trendy among people who did not know about cryptocurrencies before.
Examples of how obsession with the NFT reached its peak can be seen in Biple, which sold its art for almost $ 70 million, and such as the Hermitage in St. Petersburg, Russia, announced that it will host an NFT art exhibition in 2021.
Why is there such an interest in NFT, apart from the hype of celebrities supporting the technology? Can a simple cryptocurrency fanatic manage an NFT in a user-friendly way?
So why are NTF platforms evolving so fast, and what are they? This is why NTF platforms are important for engaging the art community, how they actually work and what they have to offer their users, beyond being a kind of marketplace.
The whole point of the NTF itself is in its unique properties. It cannot be exchanged, counterfeited or shared. The author of the token can confirm the ownership or the fact of the transfer of the specified ownership. That is, the owner of that product can codify it by running NFT, setting a price for it and putting it up for auction. The buyer of these tokens gets the right to own and dispose of goods, while the information related to this is registered in the blockchain.
It is clear that transactions with tokens are cheaper, easier and faster than transactions with real objects, although platforms for creating and selling NFTs are just beginning to develop. However, NFT is not fully regulated by law, and it can be difficult to prove ownership of intellectual property rights. Yes, unfortunately, not everyone agrees that blockchain is a legal method of keeping records.
What are the rights of a buyer who spends his hard earned money on copyright code? If there is no legal agreement between the creator and the buyer of NFT, the exclusive rights are not transferred to the buyer only when the token is purchased.
The platform may set different rules, but today the standard terms for larger platforms do not contain such rules. The platforms will probably give the creators of NFT the right to choose their own license terms.
Of course, no financial instrument can last long without government regulation. This is where NTF is likely to follow the path of traditional cryptocurrencies, with some speculating that lawmakers will eventually come in.
The first is security and the second is NFT.
NTF platforms offer content in a variety of formats, so that everyone can choose which art field they want to enter. But before you enter the industry, it is worth understanding how it works and whether it is safe given the potential risks.
For example, NFT is on the Ethereum blockchain. After selecting the NFT platform, the user must create an Ethereum wallet with which unique tokens will be sold and sold. Wallets help to authorize users on platforms, in most cases without providing additional data such as username or password, as the wallet identifies the user using the wallet address. Some platforms require users to purchase a token and then purchase a work of art.
The principle of operation of any NTF platform is simple: users come to the platform to protect their rights to created or purchased content, and as confirmation they receive a code that can be freely traded with another user. From a security point of view, NTF actually acts as a barrier, as the blockchain contains information about the owner, be it the creator or the buyer.
But this does not mean that by buying NFT, users can relax, because they are not safe from theft on NFT platforms. For example, the trading platform Nifty Gateway reported in March that some users experienced account theft, credit card theft and NFT purchases without their knowledge. However, it turned out that two-factor user authentication was not enabled on any of the accounts.
This is not a question of poor security for NTF platforms, but rather a lack of knowledge on the part of users. All valuables must be stored in a safe place, and NFT codes are no exception. It is not enough to just buy a code and store it on the platform – users need to secure their account, enable two-factor authentication and store the password in a safe place, and in fact most platforms provide this option. Every valuable NTF owner must understand their responsibilities and protect their assets.