NFT is the new buzzword. Popularized in 2021 by cryptocurrency enthusiasts, non-fungible tokens are about to enter other sectors, including video games. We tell you everything you need to know about this controversial technology.
Since the beginning of last year, we have been hearing a lot about NFT. Often, celebrities invest large sums of money in what are often presented as simple JPG images that represent computer-generated characters. For example, the famous rapper Eminem bought NFT from the Bored Ape Yacht Club collection for $450,000.
Presented as simple images sold at high prices, NFTs will make you smile. Despite the strong media coverage of the event, many Internet users are actually struggling understand the interest in NFTs, and the underlying revolution that accompanies them and describes the future of the Internet (the famous Web 3.0). We explore this abstract and thorny topic below.
What is NFT (non-fungible token)?
NFT is the acronym for “non fungible token”, or “non fungible token” in French. A thing is said to be fungible if it is fungible “substitutable by things of the same nature, same quality and same quantity”, explained the Larousse. our fungible assets, we will find the money. A euro coin can be replaced by a euro coin. Similarly, one Bitcoin can be exchanged for another Bitcoin.
On the other hand, a so-called non-fungible asset cannot be replaced by another element. This is amazing. In the same way that a work by Leonardo Di Vinci, Monet or Picasso is unique, an NFT is unique. Its uniqueness is easily recognized. Attention, we always talk about NFT to describe visual works (the famous JPG mentioned above), but it can also be a musical work, a film or a writing or the code of an element on the computer. For example, the first SMS in history was digitized as an NFT and sold to the highest bidder. The source code of the World Wide Web is also auctioned as NFTs along with the front page of Wikipedia.
NFTs also promise to be important in the future metaverse. Non-fungible tokens may also allow the exchange of digital real estate in virtual spaces such as Decentraland or The Sandbox. A piece of virtual land in the form of NFT was also sold last year for 2.4 million dollars.
To prove the uniqueness of an NFT, it is necessary digitized and registered on the blockchain. Currently, a large portion of non-fungible tokens are registered on the Ethereum blockchain. At the origin of most cryptocurrencies on the market, blockchain is a decentralized ledger that keeps track of everything entered into it. Unlike a more traditional database, the blockchain, or chain of blocks in French, is immutable, immutable and inviolable.
When creating an NFT, all the data of a job is digitized and entered into the blockchain. A non-fungible token can there is a lot of information. Technologies also make it possible to integrate large amounts of data, from images to lines of code, including video. Once registered on the blockchain, the work is accompanied by a digital certificate of authenticity. This certificate guarantees that the Internet user in his possession is the sole and unique owner of an NFT.
Once digitized on the blockchain, the history of the work (purchase, sale, creation date, creator name, etc.) is recorded forever. This is why auction houses specializing in Art, such as Christie’s or Sotheby’s, quickly adopted the technology behind NFTs.
Where to buy NFTs?
There are many platforms for buying and selling NFTs. Among the most popular sites are OpenSea, Foundation, Ethernity or Rarible. Many cryptocurrency exchange platforms have also started NFTs by offering their users to buy or sell them through their interface. This is the particular case of the important Binance, the service that allows you to trade cryptocurrencies.
As explained above, there are many platforms to create an NFT. For simplicity, let’s focus the procedure to be followed by OpenSea, which is the most widely used platform in the industry. Before you start, make sure you have an Ethereum wallet like Metamask available. To open the wallet, simply install the Metamask app on your smartphone from the Play Store or the App Store. You can also install it as an extension to your Chrome web browser.
We explain how to create (“minter”) a non-fungible token in a few steps:
- Go to the OpenSea website or download the app from the Play Store or the App Store
- Press the button make above the interface
- Then choose Metamask from the digital wallets offered
- Once the wallet is connected, click on My Collection
- Create a collection of works by clicking on make
- Once the collection is created, you need to choose a logo for it by following the instructions on the screen
- Finally, press AddItem.
- Choose Add New Item
- Allow Metamask connection
- Follow the instructions on the screen and drag the image into the frame provided for this purpose
- Click on make
Be careful, if you want to sell your NFT, you need to pay a small amount of cryptocurrency (Ether) money. To offer your work for sale, you need to payment of ethereum network fees. This value can sometimes be very large depending on network congestion.
Should you invest in an NFT?
Holders of a non-fungible token will not hesitate to present it as an excellent investment. By predicting the price of some collections of the main tree, some Internet users have managed to become rich, or at least profit from cryptocurrencies.
However, it should be noted that making money from NFTs is not as easy as one would like to believe. In fact, the price of all digital works does not automatically increase. By investing in an NFT, you always take the risk of not getting your initial bet back. For one reason or another, property prices may drop and never rise again. This is true for NFTs, cryptocurrencies, stocks or real estate.
Why do NFTs often inspire distrust, especially among players?
Many video game publishers protested their interest in NFTs. More and more studios want to offer skins or items in the form of non-fungible tokens to their players. In December, Ubisoft also announced the launch of Quartz, a platform for acquiring NFTs. This platform offers non-usable tokens for use in the game Ghost Recon Breakpoint.
This initiative causes the anger of the players. Facing criticism, Ubisoft was forced to remove the presentation video from its YouTube channel. Many players actually sum up NFTs in the speculation and trading of digital works and believe that the publishers are only trying to get rich off their backs. Also, some video game fans point the finger energy consumption large number of cryptocurrencies and blockchains that allow NFTs to be exchanged. By adopting NFTs, they believe that publishers are putting the environment at risk.
Under these conditions, they take a bad look at the implementation of NFTs in their favorite video games. The harshness of the critics of NFTs has changed their minds of many companies in the sector. This is especially the case with Discord. The popular messaging application for gamers has finally opted not to add support for NFTs to its platform after an outcry from its user community. Despite everything, many companies, including Square Enix, continue to express their interest in the technology.
After all, by mid-2022, the popularity of NFTs is clearly at half-mast. The many controversies they have sparked, combined with the sharp fall in cryptocurrencies for weeks, have left investors cold. Result: NFT searches collapsed on Google by 75%. The excitement seems to have passed: Internet users are no longer interested in non-fungible tokens.
What has not decreased, however, is the number of scams on trading platforms. In July 2022, the amount collected by pirates has reached 100 million euros, just for this year.