A few days ago the news that Christie’s, the well-known auction house, has decided to move with decisive steps towards the emerging market of Crypto art.
The entrance in the Nft of the well known auction house Christie’s, which, from February 25 to March 11, will auction Everydays – The First 5000 Days, a work created by Beeple, born Mike Winkelmann, already a recordman of crypto art. This is the first auction of a Not Fungible Token made by a major auction house, an event of historical significance that will certainly affect the development of the digital art market.
But what are Nfts?
Non-Fungible Token (NFT) is the acronym of Non-Fungible Token.
What does “non-fungible” mean? When something is fungible it can easily be replaced by something identical and is totally interchangeable. A physical example of a non-fungible asset would be an airline ticket. Each ticket looks the same as the other tickets, but each one has written on it the name of the passenger, the destination, the time of departure, and the precise number of seats to go to. Exchanging this ticket with a stranger brings serious consequences, such as ending up thousands of miles away from where you wanted to go, should airport security not stop you first. This all changes with Non Fungible Tokens, many of which conform to a standard called ERC-721.
Non Fungible Tokens (NFT) are therefore a type of digital asset registered on blockchain and have 3 characteristics that set them apart: they are unique, rare and indivisible.
NFT tokens can represent many different types of digital assets such as: collectibles on blockchain, digital artwork, property in virtual reality, event tickets, gaming items. They can also be used to certify real estate, cars, artwork, and intellectual property of various kinds.
One of the pioneers of non-fungible tokens was CryptoKitties. Co, an app on Ethereum where players have the ability to collect and breed digital cats. If you’ve ever had a cat, you know that they’re not easy to replace because their appearance and personality make them unique. In this case, CryptoKitties has replicated this concept in the Blockchain world with each cat’s digital genetic material stored in an NFT Token. These Tokens/Cats can be bought and sold on Ethereum, and some are rarer than others. In fact, sales in 2017 reached $12 million with the most expensive CryptoKitty selling for $120,000.
The NFT market and development is facing a future full of surprises. The potential of this industry is still largely unexplored. There are thousands of use cases for NFT tokens: product warranties, certificates of ownership, certificates of origin and many, many more.
Commercio.network plans to offer companies a system to generate NFT Tokens quickly and easily.
Imagine being able to tokenize your receivables by creating an NFT Token of an invoice, and get liquidity quickly by assigning the receivable to a third party on an NFT Token Exchange.