Hot digital assets take a toll on the environment.
Americans spend more than 11 hours a day online, creating and consuming posts, images, tweets and more. And this year we saw more digital media up for sale than ever before — at record prices — in the form of the non-fungible token . These digital assets, purchased through cryptocurrency, have been around for nearly a decade, but 2021 made them a global phenomenon.
Non-fungible essentially means “one of a kind” — unlike, say, a dollar bill. Both real and digital cash are fungible; one dollar or one Bitcoin is always worth the same as another dollar or Bitcoin. An NFT, on the other hand, is a unique digitally encoded asset that someone can own and whose value is determined by what buyers are willing to pay.
So how does it work? The concept is to create ownership around digital goods. These could be YouTube videos, digital art, mp3s, or special events, like live-streamed shows. A unique digital signature is created — kind of like a copyright — and the product is sold to the highest bidder. Digital cash, as part of a decentralized system for buying NFTs, cuts out the middleman. Blockchain technology enables this purchase by creating a unique and permanent record of exchanges, proving ownership.
Unfortunately, NFTs are taking a massive toll on the environment. Ethereum blockchain requires computers constantly running to support its complex cryptography system to validate transactions — currently consuming as much energy as some small countries. There’s still much we don’t know about NFTs. How will they be taxed? Are they just a fad, or here to stay? But there’s no arguing that cryptocurrency transactions for NFTs generate cold, hard cash — to the tune of tens of millions.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The year in tech: Space tourism lifts off, NFTs go mainstream and Big Tech faces reckoningA look at the most significant technology and scientific advancements in 2021 and what to expect going into 2022.
Read more »
Enable Customized Royalties For NFTs With Multiple Creators, ERC20 Payout, and More, with Tatum | Hacker NoonUsing our JavaScript SDK and API, you can create royalty NFTs with just a few lines of code. No need to code your own smart contracts, or run blockchain nodes.
Read more »
Master, build and sell your own NFTs with this bundle, now just $20The All-in-One NFT Masterclass for Artists & Entrepreneurs Bundle gives you the knowledge and skill-set to start building and selling NFTs yourself.
Read more »
NFTs to help brewers and farmers preserve UNESCO Belgian beer heritage80% of the revenue generated from the NFT auction will go towards a local charity in Belgium, according to BBA.
Read more »
Cardano Founder Charles Hoskinson Argues Regulators Will Clamp Down on NFTs in 2022The founder of Cardano argued that regulators are likely to clamp down on non-fungible tokens (NFTs) in 2022 and beyond.
Read more »
NFTs find true utility with the advent of the Metaverse in 2021Nonfungible tokens are one of the biggest innovations of the cryptoverse in 2021. The Metaverse is set to push the utility further in 2022.
Read more »