NFT is a relatively new topic that has already turned the universe of art and gaming upside
down. This acronym has become hotly debated and often appears in headline news today
because of the huge money behind it.
In this article, you will learn what it is, how it works, why these tokens cause so many
discussions, and what the ways of their creation and utilization are. Moreover, we will introduce
NFT CLOUD, which represents a new type of service.
What are we talking about?
To begin with, it is almost the same kind of cryptocurrency as Bitcoin or Ethereum. The
difference from others is that these tokens cannot be exchanged as they are completely unique.
This property is indicated in the abbreviation itself because, literally, NFT is translated as a non-
fungible token, that is, a token without the exchange possibility. However, why did they come to
be seen as an investment in art? In addition, what makes them so special?
In essence, we are talking about a digital asset with a collectible character. The file contains
exceptional data and is valuable both as a crypto and as a piece of art. It means that any unique
piece of art of interest to others can become NFT. For example, images or music files that are
stored digitally. Purchasing these tokens can be compared to collecting paintings, but instead of
the usual oil paints on canvas, you get an electronic file.
How does it work?
NFTs belong to the Ethereum blockchain. These are original tokens that store exclusive
information about art, music, or video in JPG, MP3, GIF, and so on. The most valuable thing
here is stored information, so non-fungible tokens can be traded in the same way as other
works of art. The value of such art determines the market and demand as, in most cases,
happens with other forms of creativity.
This is not to say that only one, the original version of NFT art, is available on marketplaces.
Just as with paintings by famous artists whose printed copies are in demand, NFT copies come
at a price, although they cost less than the original masterpiece.
Moreover, don’t confuse owning NFT art with just saving something from the Internet. This will
not make you a millionaire as the uploaded file will not contain any specific data.
Where can one buy these items?
NFTs are sold on different platforms, and one can choose any of them depending on their
needs and requirements. After you’ve made a decision, the wallet must be registered that is
compatible with this platform and replenished with cryptocurrency.
Since the sale of Everydays: The First 5000 Days on the Christies platform, many works have
begun to appear on more popular auctions, so they are also worth paying attention to. Actually,
this one, a collage of digital drawings by American artist Beeple, was sold for $69.3 million.
As the demand for different NFTs is high and continues to grow, they make drops (put up work
for sale at a certain time). It charges buyers even more because they are looking forward to the
start of the drop. Therefore, your wallet should be ready, and it is better to register in advance.
NFT is also present in the area of video gaming. Players purchase swords, skins, or avatars for
their favorite heroes and then resell those assets to another player.
Many websites sell NFTs today. In addition, dedicated platforms appear, where you can mint
and sell them. Such reliable services, as the one created by Salesforce, help companies and
individuals in the following way:
- You can launch the brand into the digital world.
- Information, communities, and wallets can be linked here together.
- The technology is safe and sustainable.
Such clouds do not utilize energy-intensive blockchains, therefore resulting in the lowest
possible level of emissions. Together with this platform, you can:
- Amaze your clients no matter where they are and provide them with unique experiences.
- Engage novel communities and integrate data.
- Mint NFTs via CRM and sell through the commerce site that you use. This opportunity provides better interaction with collections.
- Build up your trust and sustainably through proven smart contracts created on a well-known platform.
NFT Cloud from Salesforce is currently under development and will be launched soon.
Therefore, do not hesitate to learn more about it and become one of the first users.
Who uses all these, and what are the profits?
NFT art is at its peak right now, and so are its creators, including artists, designers, and brands.
Moreover, indeed, on dedicated platforms, new talents appear every day.
With the advent of this tool, separate spaces and formats appeared for the creation and
distribution of art. It can range from simple gifs like the rainbow cat (which was sold at
$690,000) to more ambitious and complex works. By buying NFT art, you not only support
creative people but can also earn money from it.
We previously mentioned NFTs in video gaming, and so, this phenomenon turned the usual
concept of buying in-game assets upside down. After all, earlier, all digital assets were bought
inside the game and belonged to the developer company. It turns out that the player had the
right to use them only during the game, and no further. However, having an NFT asset means
that the buyer is the sole owner until they sell it to another player. Thus, its value may depend
on who owned and utilized it previously.
Paintings by famous artists can cost huge sums, which is not surprising. With this in mind, some
groups of people burned the Banksy painting and filmed it to turn the video into NFT.
Nevertheless, there are also more unexpected cases, such as the Beeple collage. This was the
first appearance of the artist on the site, and he hardly counted on such a lucrative debut.
For brands, it also has become an entertainment channel from which to profit. This was
evidenced by the actions of many companies following the example of Taco Bell. His collection
of 25 themed gifs was sold out in less than 1 hour. Each NFT contained a $500 gift certificate to
spend on their products. Actually, this property raised sales to such a level. Now, the cards are
resold in the secondary market, and the most expensive of them costs $3,500.
The NBA has its own Top Shot platform, where the brand sells collectible cards with videos of
the game’s legendary moments. Now, they plan to replenish their lots with virtual jewelry,
accessories, and clothing that could be used on social networks. The NBA seeks to maximize
profits and interest collectors in every possible way.
Even tweets can be a matter of purchase, as was shown by Jack Dorsey. The first-ever tweet
was sold by him for an amazing $2,915,835.47 million.
Musicians also utilize the rights to their masterpieces as a matter of selling. Moreover, there is
digital real estate and furniture used in this process.
The so-called House on Mars created by Toronto-based designer Krista Kim was bought for $500,000. This project is considered the first such house in the world. The owner can move around in it using a virtual reality helmet and even sunbathe in their yard with a view of Mars.
Why is this topic controversial?
We all know that NFT is linked to big money, but its climate influence is also hotly debated. This
fact causes a lot of controversies.
An enormous amount of energy is needed for their creation. Therefore, some people oppose
this technology. They believe that the general craze for tokens will cause serious problems in
There is even a special web resource where one can track the amount of
carbon emitted during their creation. It reveals that as much as 192 kWh was used to write an
image called Coronavirus into the token.
This figure is equal to how much energy an average European citizen consumes in two weeks. It should be noted that the number of kW does not depend on the complexity of the image. Even if the simplest illustration in the world is recorded, the power consumption may remain the same.
Therefore, some artists promise that in the future, all their drops will be not only carbon-neutral
but even carbon-negative. Probably, many artists would support this idea, but in reality, this
promise is not yet possible to fulfill. Everything is much deeper than it seems at first glance. The
problem rests on how the crypto system works.
All leading cryptocurrencies are built on a proof-of-work system. Thus, to securely store the
financial data of users, lots of energy is involved. It may come as a shock to you, but Ethereum
alone consumes the same amount of energy as the whole of Libya!
However, the world does not stand still, and let us hope that soon, the problem will disappear,
and the topic of NFT will no longer be related to the impact on our planet. Some organizations
are now developing solutions that will help avoid negative consequences in the future.
For example, as we have already mentioned above, NFT Clouds do not need energy-intensive
blockchains, and their level of emissions is minimal.
Many artists and designers are outraged by the astronomical sums that are being made around
NFTs. Especially when you consider that their main idea was to make life easier so that artists
can independently manage digital rights to creativity and not make them elite.
Therefore, many resent the fact that involvement via this tool can make anyone great. Nevertheless, is everything so simple?
Anyone can create this or not?
Technically, anyone can develop a work, turn it into an NFT, and post it on the dedicated
marketplace. For example, Canadian snowboarder, musician, and artist Trevor Andrew
managed to sell his Gucci Ghost animation above for a whopping $3,600.
You can also set a commission on this file, which you are going to receive every time it is
resold. Still, just like with purchasing NFTs, you need an e-wallet filled to the brim with
Actually, the necessity to make an advance payment is the whole point.
Hidden fees and commissions often amount to unbearable sums. In addition to the commission
for the buying or selling, the sites can charge fees for the electricity utilized to complete the
Moreover, it is worth considering the commission for transferring to an account and
the fluctuations that happen all the time.
That is why you can spend more on commissions than you earn from selling NFTs. However, all
sites have different commissions, and if you are a serious user, you should do your own
No matter how long NFT lasts, it has already become the new favorite toy of people. Now, it’s
up to you to make money on it or not. There is no denying that this tool has given new meaning to digital art. Recent events and high-profile sales confirm the theory that art and collecting will always bring big money and pleasure.