Collins, the world’s leading prestigious English dictionary, has chosen “NFT” as the most prominent word in 2021, as the frequency of this word has increased by 11,000% compared to the previous year. This partly reflects the NFT investment fever that is spreading globally and attracting the attention of the public as well as big names in many fields such as technology, sports, art,… So in this article, GOGA will clarify the concept of NFT and explain the cause of the NFT fever.
What is NFT?
NFT (Non-fungible token) is a type of digital asset that uses blockchain technology (blockchain) – similar to Bitcoin – to create a unique chain of code which represents something and cannot be replaced. These series of codes are often used to identify digital versions of works of art, songs, or internet phenomena.
NFTs are purchased through online auctions and paid in USD or virtual currency. NFT suddenly became a craze recently after many digital art works were sold for millions of dollars and celebrities and business leaders entered the market.
According to CoinDesk, some of the outstanding features of NFT include:
– Indivisible : Cryptocurrencies like Bitcoin or Ether are divisible and transacted as fractions, while the NFT is an intact asset.
–Indestructible or counterfeit: All NFT data is stored on the blockchain platform through smart contracts. Virtual in-game items can be mass copied or removed if the manufacturer declares a closure, but each NFT is unique and belongs to no company. For example, you can buy music from iTunes but not own the music, but only buy a license to listen to the music.
– Verifiable: Digital artworks sold as NFTs will always be originals, no second copies. Thanks to the storage of ownership data on the blockchain, anyone can trace back to the creator of the work without a third party to participate in authentication just like art antiques that need expert certification.
Mr. Kelly, president of the Nonfungible.com platform, says owning an NFT is like owning the original Mona Lisa. Although there are many copies of the work in the world, there is only one person who owns the original, he said.
NFT exists in all digital objects: images, videos, music, text, and even Twitter posts. But digital art attracts the highest price deals. For example, on the platform of US professional basketball league’s NBA Top Shot, fans can purchase NFT collections including videos of key moments from the games.
NFTs can also be the land in virtual world environments, a digital garment, or the right to use a proprietary cryptocurrency wallet. In March 2021, the first Twitter post of Twitter owner Jack Dorsey sold for $2.9 million as an NFT. According to data from market tracking firm DappRadar, NFT sales grew to $10.7 billion in the third quarter of 2021.
“As we move more and more into a society where technology blends, intersects, and becomes more powerful, NFTs and digital assets will be a reflection of our preferences and values in human society,” said Max Moore, Sotheby’s vice president of Contemporary Art.
What are the causes of NFT Fever?
Uniqueness of NFT assets
Talking about the reason why NFT became a craze, Dan Kelly, president of Nonfungible.com platform, said that NFT investors buy a certain product with the aim of becoming a sole owner, or expect the price of the product to increase and sell for a profit. For example, a series of NFTs associated with some works are sold at high prices. NFT of the internet phenomenon called Nyan Cat with the image of a cat with the body of a Pop-Tart was bought for nearly $ 600,000. The NFT of Mike Winkelmann’s Everdays: The First 5000 days was recently sold through Christie’s for more than $69 million.
NFT itself has collectible value because each item is unique, but more than that, it also helps bring profits to gamers and investors. Thanks to Blockchain technology, investors and gamers can make money by selling in-game items, in virtual casinos like The Sandbox or virtual amusement park Decentraland.
Big names entered NFT
The participation in NFT of big names such as Nike, Adidas, Gucci, Louis Vuitton,…. partly created the crowd effect and curiosity about NFT to the public.
Luxury fashion house Dolce&Gabbana has launched an NFT edition haute couture collection. Most recently, in December 2021, Nike acquired RTFKT – a company specializing in digital shoes. Nike CEO John Donahoe emphasized that the acquisition of RTFKT accelerates Nike’s digital transformation.
Meta, the parent company of Facebook, is also reportedly looking for the method for users to create and sell NFTs across its two social networking platforms, Facebook and Instagram. The company is also developing a tool that allows users to create their own NFTs on the Meta platform. In December 2021, Instagram Director – Adam Mosseri – also shared that the company is developing NFT.
BA Top Shot – a joint venture between the National Basketball League (NBA) and blockchain company Dapper Labs – has created a platform where sports fans can buy, sell and collect representative NFTs for licensed videos of basketball games or related items. The platform earned nearly $150 million in just one week. One person paid up to $175,000 for NFTs of basketball cards and they are now worth $20 million.
In September 2021, Times magazine announced an NFT product line that will provide unlimited access to the magazine’s website through 2023. Also this month, PepsiCo’s potato brand Lays partnered with digital platform Project Ark to release NFT paintings, made up of more than 3,000 smiling photos of 3,000 people around the world. The $300,000 raised from the auction selling this painting was donated to non-profit organizations.
Virtual assets, real benefits
In addition to art collections, items such as games, music, real estate, wine … can basically be turned into NFTs. Even financial assets like whole life insurance policies can be converted into NFTs. At the end of last month, US life insurance company Sundance Strategies announced plans to launch a life insurance NFT product.
According to Ho Kien Quyen, founder of virtual real estate company The Mettaverse, the fundamental value of NFT is property ownership. Due to the unique nature of NFT ownership that cannot be counterfeited, owning an NFT product is a way for many people to satisfy their passion for collecting, to demonstrate their social status, or simply to see it as an investment with the expectation of reselling it at a higher price.
However, the strategy many companies are taking when exploiting NFT is the ability to link virtual assets with the real world, bringing value to NFT. For example, the NFT can be used as a membership card, allowing the holder to join both real and virtual clubs. For example, if the buyer purchases an NFT membership for the Bored Ape Yacht Club, they also own the club’s entrance ticket. Coca-Cola also released an NFT collection for auction and donated the proceeds to an international sporting event for people with intellectual disabilities.
Reference: https://goga.ai/vi/gia-tri-cac-bo-suu-tap-nfts/
How will NFTs be applied in GOGA?
The software development team of X3English, inspired by the popularity and applicability of NFT to create GOGA – a gamified and NFT-integrated English learning application with the learn-to-earn method.
In GOGA, when completing each lesson via minigame, learners can receive in-game items, tokens and countless other attractive features, thereby stimulating their passion for learning to accumulate more and more items, overcome new challenges. We do believe that the more you love the game and want to level up, the more eager you will be to learn and thereby improve your language skills quickly without putting too much pressure on scores and exams.
GOGA’s Methodology is developed on the passion and desire to overcome challenges to achieve worthy rewards (tokens, items). When you have items or tokens in your hand, you simultaneously have a certain amount of digital assets and have the right to exchange and buy according to your personal desires and preferences.
Therefore, in a nutshell, we, GOGA, expect that the number of tokens and items will be proportional to your level of passion for learning. The more you complete the English challenge, the more opportunities you have to accumulate for yourself a market-valued digital asset. We created GOGA so that you can play games while learning English and become a trendy NFT investor.
We, X3English do hope this article has provided you with useful information about NFT and its application in GOGA English learning application.