Non-fungible Tokens, the multi-million-dollar cryptocurrency phenomenon, have snatched the attention of the entire world in recent months. These one-of-a-kind digital assets have been gaining traction in India as well.
The digital artwork sold as an NFT by digital artist Michael Joseph Winkelmann, also known as Beeple, was purchased by an Indian programmer Vignesh Sundaresan for nearly $70 million.
The first tweet from Twitter CEO Jack Dorsey, "just setting up my Twitter" was also auctioned off as an NFT for more than $2.9 million.
India's first NFT marketplace
WazirX, India's largest cryptocurrency, has opened the country's first marketplace for NFTs in response to the recent boom.
The platform will allow for the sharing of intellectual property and digital assets such as images, audio files, art, tweets, and other digital goods and services. On the NFT marketplace, Indian creators can sell their work.
What is an (NFT)?
- NFT stands for Non-Fungible Tokens.
- Non-fungible Tokens are one-of-a-kind digital properties. Unlike bitcoins, these tokens are non-fungible, making them irreplaceable and non-interchangeable with other related assets. They can't be divided into smaller denominations like bitcoins, either.
- An NFT is a digital item that includes a certificate of authenticity produced using blockchain technology and may include animation, memes, tweets, arts, painting, picture, video, or piece of music. An NFT, or digital object, is one-of-a-kind, and its certificate can be exchanged or sold with it.
- A single owner can be assigned to an NFT at any given time. An NFT's ownership information is stored on the blockchain. Unless otherwise stated in an explicit license, owning an NFT does not grant the digital object copyright or use rights. With NFTs, the field of digital art is undergoing a transformative change, assisting in the resolution of the ownership question.
- NFTs have been around since the mid-2010s, but CryptoKitties, one of the first blockchain games to allow players to adopt, raise, and exchange virtual cats made them popular in 2017.
What are Non-Fungible Tokens and how do they work?
- The majority of NFTs are currently stored on the Ethereum blockchain.
- Each NFT is indestructible and cannot be replicated since Ethereum is a blockchain platform that uses smart contracts. Any digital entity stored on the blockchain can have its own information tracked back to its maker.
- The indigenous cryptocurrency platformWazirX, the country's first marketplace for NFTs will help Indian artists and developers.
- Users may upload images, audio files, and artwork, as well as list their intellectual property, such as tweets, for auction on the site.
Non-fungible Tokens' Future
- According to the NFT Report 2020, NFT revenues in 2020 exceeded $100 million during the pandemic.
- The Indian government and the Reserve Bank of India are considering a system for cryptocurrencies. NFT supporters should be aware that, as a new idea in India, the NFT ecosystem is an unregulated cryptocurrency sector.
- According to industry experts, NFTs may be the next big thing, revolutionizing the way we conduct financial, real-estate, and virtual asset transactions. Smart contracts based on blockchain technology could eventually replace conventional agreements.