In recent months we have been constantly hearing the word NFTs (Non-fungible tokens). Even those who are not familiar with cryptocurrencies are eager to know more about NFTs. What is this all about and why people are more interested in it? How does it work? Well, the answer to all these questions is answered in this article for your information.
Non-fungible tokens are an important part of the cryptocurrency world and the popularity of these tokens has boomed in 2021. In recent days we have heard of the World’s biggest companies that have launched their NFT tokens. The tokenized versions of the top athletes have been launched through major sports organizations. Much other major personnel has also been involved in this act.
You might have heard recently that Amitabh Bachchan became the first Bollywood star to create his own NFTs. NFTs itself is the celebrity of the new digital era. Blockchain technology has made it possible for celebrities to think of these NFTs. The major artworks of Big B have been converted into digital artwork which not only gain popularity but attract wealth.
Okay, now let’s see what are NFT tokens and how do they work.
As the name suggests, NFTs are different from the major cryptocurrency Bitcoin, which means it is interchangeable. We usually know that if any item is fungible, we can replace it with any identical thing. Even though some people have made success in this, it is not an easy way to make a quick buck and you cannot guarantee success in this space.
NFT is a tool through which you can sell any digital file. It is digital art, converting into money. The value of this digital file increases if it comes in the hands of talented people. These people can sell their artwork online in the global market. WazirX has entered this platform in April this year and creating more potential among other financial transactions.
NFTs are based on the Ethereum blockchain, but the network congestion here points to the other platforms to start its created digital assets. The developers of NFTs should limit the token supply to maintain the scarcity which gives it the value. Some platforms like Nifty Gateway accepts the purchase through credit and debit cards.
The other difference between NFTs and cryptocurrencies is that NFTs cannot be divided into smaller chunks whereas one can send BTC in portions easily. The common advantage of NFTs is the authenticity of the asset it provides through the blockchain platform and the history of the ownership is recorded.
How are NFTs in India right now?
In India, the government is thinking of implementing some rules and regulations on digital currencies. But the regular Indian Contract Act for the sale/purchase of goods is enough for current NFT transactions. To diversify their portfolios, royal artists in India are choosing NFTs in India. NFTs have become a great platform for Indian artists to showcase their talent globally.
As a new avenue, it is booming rapidly among the Indian artists to showcase their art and get revenue from it.
Currently, it was in the news that a 32-year old Delhi-based digital art creator Amrit Pal Singh, had created his NFTs in February this year. Although he did not know how the technology might work for him, his digital art story is a success story now. Once his 3D art was sold for 8 ETH which is about 13 lakhs!
As a piece of recent news, a musician in India named Santanu Hazarika and Ritviz sold their collaborated work through the Indian cryptocurrency exchange WazirX for $391.80. Similarly, an actor Vishal Malhotra sold his artwork for an amount of $5,500!
These are just an example of the digital arts sold through the WazirX platform, plenty of others got the revenues through NFTs. This year Tokyo Olympics was special for this platform as it was concentrated its marketplace with athletes. The company had captured the historical wins in the form of GIFs, artwork, and other types of mementos in Japan.
Apart from the WazirX platform, there is one more in the field for Indian investors. As WazirX, this platform also allows users to set up their digital store and operate on the platform. These are different from global platforms like OpenSea. These Indian platforms allow users a new level of autonomy.
The global NFT platform Wall is thinking of launching its social commerce platform associated with NFTs. This platform is going to invite artists to showcase their talent and to exhibit their arts for buyers.
According to the recent news, WazirX is in the top position for NFTs and has sold over 160 pieces of digital art within a month of launching its NFT marketplace. This platform also ensures to bring down the transaction fee (gas fee) for NFTs mining which can give it a global appearance.
While the global company OpenSea has a gas fee of $100-$150, the WazirX has brought this down to $1 by using their Binance Smart Chain. The other platform in India is using Polygon to get the same results.
Since the NFTs now work on the Ethereum blockchain, it is a challenge to face the legal term. The future of NFTs is purely dependent on the government authority in India. It is a complex situation for Indian artists to go the digital way. It is easy to deal with this digital blockchain through hubs like Bangalore, but not for the rural artistic areas in India. This is why there are no threats from the NFTs to the auction houses in India. Few of the global auction companies are on the way to implement the NFT way to expand their marketplace. Indian Auction houses too have to take the further step to keep up with the blockchain era.
The most expensive NFTs so far are:
- Mike Inkelmann’s art for 3.5 million dollars
- Images by Rick and Morty for 2.3 million dollars
- Blockchain game Axie for 1.5 million dollars
- CryptoPunks for 7,50,000 dollars.
In India, the future for NFTs looks to be bright as the cryptocurrency platform doing. Many cryptocurrency platforms are soon going to launch their own NFTs associating with the new startups. Artists in India are aware that they had to showcase their arts in the auction house and have to go through middlemen paying huge commissions. These NFTs will give a great break for such artists and are enthusiastic in selling their art for global audiences through NFTs with minimal charges.