Crystal Fx Group
You may have heard of NFTs in the news or social media from independent artists and established brands. More people are joining the NFT space every day. So, what is an NFT? Read through our guide to learn about this unique blockchain application
NFT stands for Non-Fungible Token. "Non-fungible" means that it is completely unique. "Token" means that it can be transferred on a blockchain. Essentially, NFTs are assets that carry a unique digital identity and can be traded between users on a public blockchain like Tezos. Common examples of NFTs include artwork, trading cards, comic books, sports collectibles, games and more. Although NFTs tend to be associated with artwork, they actually represent much more.
One of the most common criticisms of NFTs, and something that tends to chase away many artists, is that traditional NFTs aren’t eco-friendly. However, not all NFTs are created equal - at least in this regard. Because Tezos is an energy-efficient blockchain, NFTs on Tezos are energy-efficient as well, with a carbon footprint similar to the energy consumption of sending a single tweet. Due to Tezos’ design as a highly efficient proof of stake blockchain, energy consumption is kept low in comparison to NFTs on Proof of Work blockchains like Ethereum and other blockchains.
NFTs can be many things; most often they are represented as artwork, but NFTs can actually unlock a lot of things including digital and in-person experiences, etc. It works like this - because NFT ownership can be instantly and easily verified on the blockchain, NFTs can act as proof of ownership. This is helpful in categories like art, where provenance is such an important part of the collectability of a piece. But this provenance, or proof of ownership is even more useful when applying NFTs to things like experiences; for example, you might in the future use an NFT to unlock access to a digital or in-person gallery or event for a specific artist, with the NFT acting as a ticket or pass to grant you access. The possibilities are really endless. Regardless of whether you are a brand, an institution, an artist or collector, NFTs work in the same way. NFTs empower creators to connect directly with fans and enable new types of exclusive experiences that can be virtual, in-person, or both.
