NFT: What is an immutable token and what does it do?

We’ve been hearing about NFT a lot since the beginning of last year. Regularly, celebrities invest huge sums in what is presented as simple JPG images representing computer-generated characters. For example, famous rapper Eminem bought an NFT For $450,000 from the Bored Ape Yacht Club collection.

Presented as simple images that sell for a hefty price, NFTs can make you smile. Despite the strong media coverage of this phenomenon, many Internet users do indeed Understanding the relevance of NFTsand the fundamental revolution that accompanied them and prefigured the future of the Internet (the famous Web 3.0). We consider this abstract and complex issue below.

What is NFT (free token)?

NFT is an abbreviation for “non-comparable token” or “unchangeable token” in French. Something is said to be replaceable if possible. “it must be replaced by things of the same quality, of the same quality, and in the same quantity”explains Larousse. Between mutable assetsWe find the money. One euro coin can be exchanged for one euro coin. Similarly, one Bitcoin can be exchanged for another Bitcoin.

On the other hand, a so-called gratuitous asset cannot be exchanged for another element. Matchless. Just as a work of Leonardo Di Vinci, Monet or Picasso is unique, an NFT is unique. Its uniqueness is easily identifiable. Note, we usually refer to NFT to describe visual works (famous JPGs as mentioned above), but it can also be a piece of music, a movie or a piece of writing or the code of a computer item. For example, the first SMS in history was digitized as NFT and sold to the highest bidder. World Wide Web source code is also auctioned as NFTs, along with Wikipedia’s front page.

NFTs also promise to be important in the future metaverse. Non-exchangeable tokens can also allow swapping. digital real estate in virtual spaces Like Decentraland or The Sandbox. A piece of virtual land in the form of NFT was also sold for $2.4 million last year.

What is it for and how does it work?

To confirm the uniqueness of an NFT, digitized and recorded on the blockchain. Currently, the majority of non-tradable tokens are registered on the Ethereum blockchain. At the origin of most cryptocurrencies on the market, the blockchain is a decentralized ledger that keeps track of everything that goes into it. Unlike a more traditional database, blockchain or blockchain in French is immutable, immutable and inviolable.

When creating an NFT, all data of a study will be digitized and entered into the blockchain. Can be an immutable token contains a large amount of information. Technologies also make it possible to combine a range of data, from images to lines of code, including video. After registration on the blockchain, the work will be accompanied by a digital certificate of authenticity. This certificate assures that the Internet user it owns is indeed the sole and unique owner of an NFT.

Once digitized on the blockchain, the history of the business (purchases, resales, date of creation, name of the creator, etc.) is saved forever. For this reason, auction houses specializing in the Arts such as Christie’s or Sotheby’s have quickly adopted the technology behind NFTs.

Where to buy NFTs?

There are many platforms for buying and selling NFT. Among the most popular sites OpenSea, Foundation, Ethernity or Rarible. Many cryptocurrency exchange platforms started NFTs by offering their users to buy or sell them through their interfaces. This is especially true for core Binance, which lets you trade cryptocurrencies.

How is NFT created?

As explained above, there are many platforms for building an NFT. For simplicity, we will focus Method to follow in OpenSeais by far the most widely used platform in the industry. Before you start, make sure you have an Ethereum wallet like Metamask. To open a wallet, simply install the Metamask app on your smartphone from here. Play Store Where app store. You can also install it as an extension to your Chrome web browser.

We explain how to create (“minter”) an immutable token in a few steps:

• visit site Offshore or download the app from Play Store Where app store
• push button To create at the top of the interface
• Then select Metamask from the available digital wallets
• After the wallet is connected, click on it. my collections
• Create a collection of artifacts by clicking on it To create
• Once the collection is created, you will need to select a logo for the collection by following the onscreen instructions.
• Finally, press add item.
• To choose Add new item
• Authorize connection with Metamask
• Follow the on-screen instructions and drag the image into the frame provided for this purpose.
• click To create

Be careful, if you want to sell your NFT later, you will have to pay a small amount in cryptocurrency (Ether). To put your work up for sale, you must pay ethereum network fees. This amount can sometimes be quite high due to network congestion.

Should you invest in an NFT?

Free token holders do not hesitate to present them as excellent investments. By speculating on the price of some flagship collectibles, some Internet users manage to get rich or at least make impressive profits in cryptocurrencies.

However, keep in mind that making money from NFTs is not as easy as you’d like to believe. Indeed, not all digital jobs automatically increase in price. By investing in an NFT, you always risk of not getting your first bet back. For one reason or another, the price of the property may go down and never rise again. This applies to NFTs, cryptocurrencies, stocks or real estate.

Why do NFTs so often create distrust, especially among gamers?

Many video game publishers protested Their interest in NFTs. More and more studios want to offer their players skins or items in the form of non-tradable tokens. In December, Ubisoft also announced the launch of Quartz, a platform for purchasing NFTs. This platform offers free coins for in-game use Ghost Recon Breakpoint.

This initiative caused the anger of the players. Facing criticism, Ubisoft had to remove the promotional video from its YouTube channel. Many players really ditch NFTs to speculate and trade in digital artifacts, believing that publishers are just trying to get rich on their backs. Also, some video game fans point fingers. energy consumption Huge number of cryptocurrencies and blockchains that allow NFTs to be exchanged. They believe that by adopting NFTs, broadcasters are endangering the environment.

Under these circumstances, they have a very vague view of the implementation of NFTs in their favorite video games. The brutality of NFT critics caused many companies in the industry to change their minds. This situation is particularly conflict. The messaging app, which is popular with gamers, has finally chosen not to add NFT support to its platform after the backlash of its user community. Despite everything, many companies continue to declare their interest in the technology, including Square Enix.

Regardless, by mid-2022, the popularity of NFTs had very clearly halved. The many controversies they have unleashed, coupled with the dizzying decline of cryptocurrencies for several weeks, have alienated investors. Result: NFT searches crash 75% on Google. The frenzy seems to have passed: Internet users are no longer interested in non-tradable tokens.