What is NFT: Non-fungible token. Recently, a term we hear frequently has entered our lives: NFT. We evaluate NFTs, which are a product of blockchain technology, and “digitalized luxury” for you.
What is NFT?
NFTs, which became popular in 2021, have had an impact on the whole world, especially in the art world, from music to the game industry, from the sports community to luxury clothing brands. You can think of NFT as the unique ownership right of a digital item on the blockchain. I make a broad definition like “digital item” because it can be a work of art, it can be a video of the basket of the week in the NBA, it can be a certificate of authenticity for a luxury consumer product. NFTs are unique and cannot be copied.
The price of an NFT is determined entirely according to the value the buyer assigned to it. In other words, there is not much difference between how the price of an oil painting is determined and how the price of NFT is determined.
The NFT piece titled “Everydays”, a collage of the digital works of the US artist Mike Winkelmann, whose nickname is Beeple in the past weeks, was sold for $69.3 million at the auction held through Christie. Third highest amount paid for a living artist’s work. It is certain that it was the first NFT work to be presented to auction by Christie’s auction house, which was founded in the 19th century and is one of the most established representatives of traditional art. What is NFT?
We see that NFTs, which are on the agenda with Beeple, are spreading rapidly in other sectors. US DJ 3LAU earned $ 11.7 million by selling his new album as NFT. While the NFT of Lebron James’ slam dunk video found buyers at $ 77,000 last month, today it is looking for its new owner with a valuation of $ 250,000. While the NFT of Twitter CEO Jack Dorsey’s first tweet was sold for $ 2.9 million, Elon Musk was offered $ 1.1 million for the NFT of his share, which includes GIF and music. What is NFT?
It did not take long for luxury consumer producers to appear with NFT applications. RTFKT Studios, the virtual sneaker brand of HYPEBEAST, sold 600 pairs of sports shoes they designed as NFT, generating $ 3.1 million in revenue. What is NFT?
One of the best use cases is the famous watch manufacturer Jacob & Co. It was implemented by. As is known, counterfeit products are one of the biggest problems of luxury brands. Jacob & Co. will integrate a blockchain wallet inside its watches, keeping it in evidence that the watches are authentic. Thus, proof of all information such as the watch’s authenticity, when it was produced, and who its previous owners were will be registered on the blockchain. What is NFT?
The usage areas of NFT are limited by our imagination and we are just getting started. The common denominator of luxury consumption products and NFTs, originality, rarity and specialness values will come into being in new application areas thanks to the possibilities provided by blockchain technology. Soon, you will be able to check the certificate of your diamond ring and the authenticity of your favorite luxury brand bag on the blockchain.
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