Following the sale of a composite of 5,000 daily drawings by digital artist Mike Winkelmann, renowned for “Beeple,” for $68 million at the world-famous auction house Christie’s, creators all over the world began to realize the potential of NFTs as a means of producing income.
Non-fungible Tokens (NFTs) aren’t precisely a new concept. Since 2014, when they were initially produced using the Ethereum blockchain, an astonishing $168 million has been spent on them.
So, before we get into the benefits of NFTs and their newer, super flexible cousin, F-NFTs (fractionalized non-fungible tokens) for creators, let us review what these terminologies represent.
What is an NFT? What does it Stand for?
Non-fungible token.
That doesn’t make it any clearer.
Alright, “Non-fungible” basically indicates it’s one-of-a-kind and can’t be substituted with anything else. A bitcoin, for example, is fungible, meaning you can exchange one for another and get precisely the identical thing.
How do NFTs work?
An NFT is a non-fungible token. Although built using the same technology underpinning cryptocurrencies, such as Bitcoin and Ethereum blockchain, there are few other similarities.
Cryptocurrencies, in the same way as fiat currencies (such as the US$ Dollar or GBP£ Pound), are meant to be “fungible.” This means it can be traded. One type of currency can be exchanged for another. Or trade for stocks and shares, goods and services, gold and diamonds, petrol, and someone else’s time (labor, skill, etc.).
Something being “fungible” means that one dollar will always equal one dollar, even when the value of what you can buy for currency changes over time. We have inflation to thank for that.
NFTs, on the other hand, are unique. The term “non-fungible token” comes from NFTs being fundamentally non-fungible. Every NFT (or, as we’ll see later, F-NFT) has a unique, cryptographically secure, and unchangeable digital signature established using a publicly visible ledger called a blockchain.
When a new NFT is “minted” or “mined” on the Ethereum blockchain (but other blockchains are now supporting them), the signature linked with it is unique. It cannot be modified, nor can anything relate to it, such as a piece of art, intellectual property (IP), a digital asset, or even a physical item. Even if they are sold for the same price, one NFT is not valued the same as another. Every NFT is one-of-a-kind.
An F-NFT is neither more nor less unique nor fungible. Fractionalized non-fungible tokens (F-NFTs) are fractions of a complete, non-fungible token (NFT) asset. It’s just that ownership is divided into percentages, comparable to holding stock in a corporation. No single shareholder owns the entire company; instead, each is given a share of that ownership in the form of shareholdings.
What do F-NFTs mean for the creator economy?
You have a lot of potential as a creator or owner of creative works to monetize them with NFTs. There’s a world of eager potential purchasers who want to own your talents, whether you’ve created videos or digital art, poetry, or paintings.
Assume you’re a gallery with works of art that could be more successfully commercialized. Look no further than the cryptocurrency community, which is brimming with eager buyers. Some people will spend millions of dollars on art, culture, and creative endeavors.
However, a much larger number of people, both inside and outside the crypto community, are as ready to buy art and creative works even if they don’t have millions to spend.
Is there a way creators and asset owners can monetize what they’ve got to a wider audience?
Yes, there is, thanks to F-NFTs.
CetoSwap F-NFT’s support
CetoSwap’s long-term vision is community-oriented. Hence one of our primary concerns is implementing standards and capabilities that allow individuals to freely trade and exchange shares from a single NFT art piece. One of the reasons we made sure our platform supports the ERC-1155 standard.
Any IC NFT project can trade fractionalized NFT on CetoSwap, giving their communities more flexibility and buying power. Considering the following scenario: a project list one of their rare NFTs at 3000 ICP; that NFT might sell within days of being listed on a marketplace, or it could sit there for weeks without finding any buyer. With F-NFT technology, a group of retail buyers could acquire portions of the same NFT and resell them or hold and wait for the value to rise.
F-NFT’s are the future of the hottest digital assets, and CetoSwap is stepping up as a pioneer within the IC network.
