Non-Fungible Tokens (NFTs) are units of data stored on a Blockchain that certifies a digital asset to be unique and therefore not interchangeable.
NFTs can be used to represent items such as photos, videos, audio, and other types of digital files that can be bought, sold or stored.
NFTs are tracked on blockchains to provide the owner with a proof of ownership.
The NFT market value tripled in 2020, reaching more than $250 million. During the first quarter of 2021, NFT sales exceeded $2 billion.
Digital Art and Early Pieces of AI Generated NFTs
Digital art is an early use case for NFTs, because of the ability of blockchain technology to assure the unique signature and ownership of NFTs.
A new artistic movement called Generative Art incorporates algorithms developed by the artist that generate on-demand unique pieces when the token is minted.
Generating artworks using Artificial Intelligence requires cutting edge deep learning algorithms, vast amounts of data and powerful computational resources.
The output is a unique and early piece of a brand new artistic approach, that has a massive potential to appreciate in value as the time passes.
Trading and Investing in Digital Assets
NFTs are now being used to commodify digital assets in art, music, sports, and other popular entertainment, with most NFTs being part of the Ethereum blockchain.
The market for NFTs has led more investors to trade at greater volumes and rates, early buyers were reported to have “done supremely well” by Bloomberg Businessweek.
Some pieces of AI generated art are definitely worth having a look, if you are looking to take advantage of the opportunities presented by investing in or trading digital assets.
We wish you a great rest of the week.