What are fungal tokens (NFTs) and what is their trend in Malaysia? – Wired PR Lifestyle Story

Non-fungal tokens (NFTs) exploded recently and like many things on the net, the trend has also reached the Malaysian coast.

Globally, supporters consider NFTs to be the next big thing in the art collection, and some of the most famous NFTs are digital artwork.

Nice, but what are NFTs?

Before we move on, it must be said that being a relatively new concept, NFT continues to be the subject of much debate, and often cannot be fully understood in one sitting. Time, research, and other perspectives will need to be sought to understand NFTs and their uses.

That said, there is an easy way to start understanding them.

Fungible elements are goods that can be easily exchanged. For example, each wallet’s RM10 banknote has the same value, so it’s the same as the RM10 banknote you use to pay for lunch. Cryptocurrency is also fungible because one Bitcoin has the exact value of another Bitcoin.

However, if something is not fungible, you cannot easily exchange it with something else because it has special properties.

So think of NFT as a single digital signature that can be attached to assets. These goods can be a piece of digital art, a video clip, a part of a song or even a tweet, which can then be bought with cryptocurrency or fiat money (a currency issued by the government like our Ringgit).

Although they are digital examples, NFTs can also be used to represent physical objects to represent physical objects such as business cards that are popular with sports and comic book fans.

Generally, NFTs can basically be viewed as deeds or securities that prove that you own a particular asset. Proponents say NFTs are more reliable than paper deeds because they are stored in a blockchain.

Wait, what’s a blockchain again?

It is a blockchain Distributed digital book, decentralized and public which is in a network. The goal of Blockchain is to record and distribute digital information, but not to edit it.

See if each new information is being compressed into a block. This block is then linked to the end of the previous block, and all of these blocks are connected by a chain. How data is recorded and stored is traceable.

In addition, a blockchain allows data to be spread across different network nodes in different locations.

Therefore, if a copy of the data is manipulated, other copies will show the original records to help determine the node with incorrect information, and a clear and transparent order of events can be provided.

Because of this security, blockchain technology has found its way into several industries, including insurance, finance, real estate, voting, and so on.

Okay, back to NFT. What exactly gives value to these things?

In short, it works like all other sales, through which there must be demand to have value.

One factor that drives the value of an NFT is scarcity. People like to have the right to be proud, so owning a single NFT satisfies that feeling.

Another factor is the availability of an NFT, whether in the physical or digital world. NFTs are not only collectors because they can also be used in games or for future options within a “club,” for example.

In games, their immediate use is to provide such characters, power-ups and more. Meanwhile, some NFTs may be “tickets” or “memberships” for exclusive events, benefits, etc., and an example of this use is shown by Bored Ape Yacht Club, which sells merchandise, organizes social events, and even a party of sailboats for members. .

The provider of the NFT-related object is also important. For example, people will give more value to an NFT made by Marvel than to an NFT of an MCU character than to an NFT of that character drawn by a non-Marvel affiliate artist. It’s a behavior similar to what people prefer to buy from well-known brands.

So technically, anything can be an NFT, but it may not necessarily be valuable for what people are buying.

Tell me the pros and cons of NFT.

As time goes on and we learn more about NFTs, we are likely to change their pros and cons. For now, however, these can also be simplified.

Differences:

• For artists, NFTs can be a way to earn more income. NFT’s current popularity offers an opportunity for exhibition, and artists who make NFTs are able to enter a market beyond art dealers and other elite groups.
• For the owners, NFTs are digital signatures of property that cannot be revoked. Even if an artist produces two works of art of the same nature, the two digital assets will have a special “serial number” attached to prove ownership of each. Therefore, the only NFT you have is still by itself.

Cons:

• For artists, “gas rates”, are the costs of transactions on the platform where the NFT is hosted, which can be expensive. This is because fees vary depending on supply and demand, and if an NFT is sold at a slightly higher or equal price of the gas fee, the artist may also have little profit or loss.
• For the ownersOwning an NFT does not mean that you own the copyright to the asset. This means that you cannot control its distribution or duplication.

These are some of the major pros and cons, as another discussion of NFTs has an impact on the environment. Blockchain technology generally has a high energy cost and carbon footprint due to the supercomputers required to “minting” an NFT (converting a digital file into a blockchain asset).

However, it has been around lately News from a Canadian technology company claiming that it has developed a self-sustaining system that converts oil waste into energy that respects the environment, which encourages cryptographic mining (the creation of blockchain blocks).

They are still in their infancy, but it shows that what we know about NFTs today may be very different tomorrow.

How are NFTs going in Malaysia?

Well, based on the news, it looks pretty good. Not only do individual artists like Red Hong Yi, Katun, Namewee, etc. earn thousands or millions of Ringgit by selling NFTs, but we’ve also seen big companies get into ups and downs, for example. Kadokawa Gempak Starz with the sale of its NFT card packages.

We also have NFT markets based in Malaysia Stage and TRART To facilitate the transaction of NFT. It can be said that Malaysia is also a growing trend, and the chances of growth seem endless.

However, anyone who wants to create or buy NFTs should definitely do their research to understand as much as possible before making an investment.

This is important to protect against risks, as NFTs are not yet regulated in Malaysia. Laws are slow to catch up with trends, just the US recently announced it will now regulate the purchase, sale and creation of NFTs.

Will this be the route we see in Malaysia as well?

If NFTs are considered securities (a negotiable financial asset), they will be under the jurisdiction and jurisdiction of the securities regulators, such as the Securities Commission Malaysia (SC). Until then, the market seems pretty open.

• Read more about what we’ve written about NFT, blockchain, and cryptography here.

Featured Image Credit: Cotton / Hong Yi red