After a digital artwork entitled “Every Day: The First 5000 Days” was sold at Christie’s for a sky-high $69.3 million, the NFT boom began to accelerate.
The full English name of NFT is Non-Fungible Token, also known as non-fungible token. It is the only and irreplaceable digital asset, and its ownership is on the chain ( Such as Ethereum) circulation. People can’t help asking, why can a digital art work be sold for tens of millions of dollars after making an NFT through the chain? What else can NFT do besides being a form of sale of artworks? 
“Every Day: First 5000 Days” was made into NFT and the auction price was as high as US$69.3 million
NFT’s connection with digital art: unique scarcity
In an event initiated by the NFT platform BCA on April 9, crypto artists Ellwood said that Beeple, the creator of “Every Day: The First 5000 Days”, has been engaged in digital art very early and has long-term accumulation. The emergence of NFT fits their creative methods and creative state. Although the price of digital artwork is unexpected, it is also inevitable, in line with the trend of digital expression and digital technology development.
“The difference between NFT and Bitcoin is very small.” Cao Yin, managing director of the Digital Renaissance Foundation, stated in the above event that NFT is a plus compared to Bitcoin An address and number, but it gives a lot of openness and freedom to new standards and development contracts.
Interestingly, purchasing NFT does not necessarily mean obtaining the copyright or the only digital copy of the work, such as the “Every Day: First 5000 Days” Works can be seen everywhere on the Internet. But NFT gives a certain kind of ownership.
Therefore, talking about the scarcity of digital art or encryption art is sometimes a puzzling thing.
Algorithm artist Reva said that in crypto art, scarcity is not measured in terms of quantity. The real scarcity is the creator himself, or even stricter.The point may be the creation of the creator in a certain period of time.
“We pay attention to decentralization in the era of encryption, and this phenomenon will be more pronounced.” Cao Yin said that the artist’s works can be sold at sky-high prices on a single piece of work. It represents the recognition of the value of the community or the community, but it does not affect the mass distribution of its derivatives, or even become ordinary mass consumer goods, enter the wallets of consumers and collectors, or become an entity by printing.
Why “NFT+Digital Art” can sell at a high price
Reva believes that there are two opportunities for high prices. One is that the wealth of the currency circle has accumulated to a certain extent. To the extent, you need to find a cultural representative. It is the blockchain era that chooses Beeple as a representative. The second opportunity is because digital art has been oppressed for too long, and it has not been able to be sold and realized before. This is a kind of backfeeding. The block chain opens the transaction channel, and secure and verifiable transactions can also be carried out on the Internet. ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
“In addition to investment value, another important value of encrypted art is identity value. Through the collection of these encrypted artists’ works, the encrypted identity of the global encrypted community is established.” Cao Yin thinks.
He said that as a new community, the crypto community is transnational and cross-cultural. Productivity and production relations are completely overlapped. They are reorganized in a decentralized manner. All participants There is identity anxiety. Collecting encrypted art can generate an identity and establish a common identity.
In addition, Cao Yin also stated that the price of the head artwork depends on the cultural recognition it represents, “how many people’s values can be represented, and how many people’s aesthetic judgments” . Beeple’s work actually represents the native community of the tens of thousands of digital ages, and represents the pursuit of value for this group, which is a totem.
Out of the field of art, what is the value of NFT
“NFT is an overall concept that is far from being developed. It may be in the direction of art now, and it will be in the future. There are various categories,” Reva told reporters.
She believes that the blockchain is the next generation of value network. Part of the value of the value network lies in currency, and the other part lies in physical objects. NFT is actually more like a plug-in, it may be a functional plug-in that can be runSoftware, “It’s like you need a feature on a mobile phone, you can buy it and install it.”
The rotating chairman of the Blockchain Committee of the China Communications Industry Association and the president of Huobi University, Yu Jianing, previously stated that NFT assets are listed on the chain. In the short term, it is mainly Realize the digital confirmation and circulation transaction of online virtual assets represented by artworks. In the medium term, in the future, stocks, private equity, and some traditional assets including real estate will also be chained through NFT. In the long run, if combined with the application of the oracle system, NFT may greatly accelerate the process of physical assets from being on-chain to transforming assets on the chain, thereby further improving the Internet of Value.
Cao Yin also mentioned that NFT is only a carrier. Currently, the carriers include encrypted art, encrypted assets, operational assets, virtual worlds, card cards, sports derivatives, etc. The areas being explored are functional areas, such as finance and identity.
He gave an example, now with a door card, in the future NFT may replace the door card instead of the key, including some membership ID cards that can be used with functional NFT. “The NFT ecological universe is diverse.”
Guosheng Securities Blockchain Research Institute pointed out in the report that NFT will become the basic protocol of the Internet of Value. 1. NFT provides a new and digital form of rights; 2. Not only copyrights, all valuable things can be chained, and its form is NFT; 3. Art, cultural and sports collections, real estate, securities, Virtual assets, emotional expression, everything can be chained; 4. The future Internet will transform from an information database to a value warehouse, and its infrastructure is NFT, web3.0 and DeFi.