NFTs: A temporary dish or here to stay? You can do this with it and you should be aware of this! – Radar

The headlines about NFTs are flying around us. But what are NFTs really? Is it a temporary fashion? And what exactly can you do about it? Radar talked about this with technology and science journalist Krijn Soeteman.

Soeteman is also currently working on a crypto-lexicon and is the author of the book ‘Cryptocurrency for Dummies’.

What is an NFT?

NFT stands for non-fungible token, which means something that cannot be replaced and is technically unique. It links ownership to a unique digital object through a smart contract. ‘Smart contract sounds very legal, but it’s not, it’s not a contract. It’s actually a very simple, small computer program ‘.

It was born out of the search to create something unique on the Internet, something you cannot copy. ‘A lot of research has been done into this since the 1980s. The first system that could do this very well is Bitcoin. If I give you a Bitcoin, you can be 100 percent sure I do not have it anymore. So you can use this to bring unique transactions from A to B ‘, Soeteman explains.

Nothing is unique in the digital domain. You can copy everything very easily. To ensure that you can not spend anything twice, such as money, we use banks and other third parties to check it for us. ‘But if they go bankrupt, or if someone does not like that party, it becomes difficult in terms of how to handle that ownership.’

He continues that it can also be very difficult with, for example, works of art. ‘If you buy a work of art now, you get a paper contract with it. Such a paper also states who the work previously belonged to. It is easy to tinker with. If you buy or sell digital art, it becomes even more difficult, and the question is whether the company that regulates those rights still exists in thirty years, where you might want to sell it.

Applications NFTs

An NFT is therefore a collector’s item sold digitally through blockchain technology. Some examples of these objects are the images you may have seen from, among others, Crypto Punks and the Bored Ape Yacht Club. In jargon, these kinds of images are called ‘collector’s items’.

Of course, it is very unusual for people to pay large sums for this. But Soeteman explains that there are several sides to the story. “You have the people who have become extremely rich in crypto in the past. They just think it’s interesting, fun or just want to act a little hard, and it does not bother them otherwise.”

In addition, it is very easy to sell something to oneself back and forth. “To the outside world, it seems like something is actually being sold. They have a picture and sell it to themselves, e.g. for one Ether, then buy it back for six, and so on. Before you know it, that image is very valuable and you can make money by selling it to other interested parties. ‘

There are also celebrities who buy these collectibles. “Then, of course, you quickly get into a kind of madness that makes one wonder what it’s really about.”

What else can an NFT be used for?

Soeteman himself believes that this hype of images will turn into something more useful. ‘That way, you can link different properties to a smart contract.’

You can think of concert tickets sold in NFT form. Concert tickets are often collectibles in advance, but then you have a digital form that you can tie fans with. “Imagine that everyone who has bought such a ticket before a certain time gets earlier access to the album or gets extra coins for the bar.”

So you can link all sorts of things to the one that is now easier to personalize because it is linked to your personal wallet. The technology journalist is therefore curious about how this will develop socially, especially on the Internet. However, he finds it unfortunate that many things have been hijacked by big companies.

What should you be aware of when buying an NFT?

And what are the ‘red flags’? Soeteman: “What often happens is that scammers work in an increasingly sophisticated way. So pay close attention to what exactly is stated if you need to give approval to something and check the link so that your wallet is not suddenly empty. It is also advisable to use Google Image Search to find out if the image already belongs to someone else and is now being randomly sold by someone else. ‘

In the end, he says that everything about NFTs ultimately has to do with real money. ‘You can experiment with it, but do not be fooled by it!’

Source: Krijn Soeteman

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