The “non-fungible tokens” (or non-fungible tokens in French) allow you to authenticate both digital and physical objects. Unregulated, they can pay a lot or … nothing.
Appearing in 2018, NFTs designate both digital ownership certificates and objects. They remain very unknown to the French: according to an Ifop survey for Cointribune, only 8% of them know what they are and 3.5% have bought them. Insights from Claire Balva, co-founder of Blockchain Partner and director of blockchain and cryptocurrencies at KPMG France.
Paris match. What is an NFT?
Chiara Balva. It is a token generated on a digital infrastructure called blockchain that represents a specific asset, which can be digital or physical. We speak of a non-fungible token because the main feature of an NFT is its unique nature. Unlike a cryptocurrency like bitcoin, which is interchangeable: one bitcoin is worth another bitcoin. NFTs are not equivalent to each other.
What are the most common uses associated with NFTs?
The first sector concerned is that of video games, thanks to the advent of games accessible for free, monetized by the sale of objects, weapons or advantages. Until now, a video game’s assets were partitioned in its database, with no possibility of being used elsewhere once the game was finished. In the form of an NFT, these assets can be resold, or even circulated outside the original game, on other platforms.
Before investing, it is necessary to conduct a thorough analysis of the issuer, the platform
NFTs have fostered the emergence of new practices …
They allow you to create a sort of collection and to be sure that a digital object is unique, or that it exists only in a limited number of copies. It is on these principles that the Sorare model is based, a start-up that carried out the largest fundraising in France in 2021 (680 million euros). He developed a fantasy football game from collectible digital player cards.
How to explain the rise of NFTs in the art world?
A work can be represented in the form of an NFT, which serves as a certificate of ownership and authenticity. NFTs can designate both the digital object and the associated certificate. Entirely digital creations such as images or clothes can be sold in virtual universes. This is what drives luxury or sportswear brands to invest in NFT, particularly for marketing purposes.
Read also. A virtual home sold for more than $ 500,000
What precautions should you take before investing in digital artwork?
Impossible to position yourself without understanding the universe of cryptocurrencies. Beyond the aesthetics, it is necessary to carry out a detailed analysis, interrogating the issuer of the NFT, the platform that markets it, the price history. This purchase must take place only in a logic of diversification of one’s savings, on an ancillary basis. An exception to these principles: buying a work by your favorite artist, if your engine is not the expectation of a capital gain.