Some thoughts about NFT

Photo by Andrey Metelev / Unsplash

If you follows all kinds of technology news every day like me, you must have notice this NFT is bursting everywhere. I believe even at this time there is a lot of people who don't understand what NFT is and why everyone on the Internet is throwing money into it.

Basically, you can think NFT is like a digital identity of an object. Currently, most of the object put on NFT is art, painting, and weird avatar pictures. From my perspective NFT is toward the correct way of internet evolving, but there is some major problem with it.

Technology is not there yet

From my point if view, the current state of NFT is not in the production situation yet. If you are already pissed off by seeing this just bear with me. Let me explain.

If you buy an art online or at the auction, got someone to deliver to your door, you can not ever trust anyone, but the professional tells you the art you bought is legit. With NFT you sure your purchases are automatically verified as the only authentic object in the world, but why?

Non-Fungible Token or NFT for short

Long story short, besides all the tech details, I can explain this fairly quickly. Back in your childhood, you must have collected some baseball cards, Pokémon cards or basketball cards. You trade your cards to other kids to get your favorite cards. It is just like that. You can see this as trading cards, but here is the catch, each card have one and only copy that is legit, rest of it just like random china made low quality cards. If you purchase a Non-Fungible Token or NFT, you are the only one who owns the legit copy of the item.

It is basically like card trading on steroids.

The Actually Catch

Just like how card trade ends, the game ends when the hype is over. If no one is interested with NFT anymore, you are stuck with it forever. Well, if you really like the NFT you bought, good for you, but for most of the collectors in the market right now, they need the hype to keep this game rolling. So they can continuously flip the price over and over again. Did not this sound familiar? You are right.

A Musical Chair game, but last one lose.

Should you stay away for now?

I’ll say it depends, if you see something really catches your eyes and the price is right, I will say go get it, support the author. As this point, the technology is not there for more than just a trading game, but there is a lot of potential with this. I’m waiting for NFT can do more than just a decoration for your digital room or some item in the digital game or social media avatar, but actually have some connection to the real world.

Real World Scenario

I’m willing to see in the near future, every object binds with NFT. When you purchase a car, only you can start the engine of the car since you’re the only one have NFT binds with the car, or enter an apartment binds with a NFT you own. People can share their account (or wallet address) to trusted users for access the object. That is when I recommend to dive in.

For now, NFT is digital art market, non of the items you bought is connecting to the real world. You can try to play it a bit, but if you trying to flip your money with it, just remember to be careful.