Non-fungible Token
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| See also: | Cryptocurrency |
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Non-fungible tokens (Acronym: NFTs) are highly controversial online tokens.
What are NFTs?
NFTs have gained notoriety for being difficult to explain and appearing nonsensical to many people hearing about them. Especially when it is explained that they are digital content where you pay astronomical values to have a code informing you that you are the owner and at the same time you are not, since the work does not exist. In addition, many NFT contents are formed for content stolen from other artists and without any kind of originality when it comes to pieces said to be "original/authorial".
[prokopetz]
For example, suppose you purchase a piece of art that’s been uploaded to the URL https://example.com/my-nifty-art.jpg, with an associated NFT.If you examine the chain of ownership documented in the NFT, you’ll find that the only fact it records about your digital art is that it resides at the URL https://example.com/my-nifty-art.jpg. That’s it. Basically, what you’ve purchased is a provenance of the URL itself, not what’s located at it.
Somebody could sell you an NFT, then overwrite the associated digital asset with a photo of their ass, and you could never prove that it wasn’t always a photo of their ass, because all your shiny new blockchain-backed provenance documents is that you own whatever file happens currently to be located at the recorded URL.[1]
Reception
NFTs have been largely disliked within most online spaces, including those within fandom. Many people feel that the rampant scams and art theft in NFT online culture and the environmental consequences – that could end up exacerbating global warming in addition to significantly increasing the price of computer products due to the high demand for parts that wear out very quickly when performing such activities. – of minting NFTs render any use the technology might have moot.[2] The Museum Computer Network has called NFTs "a tired pump and dump scam wrapped in high tech clothing," saying that they don't support artists, that there are no protections for buyers, that they have a significant environmental impact, and that they don't offer reliable authentication.[3] One estimate of the environmental impact of NFTs found that an average NFT emitted as much carbon as driving 500 miles in an American car.[4] Some critics have described NFTs as a ponzi scheme.[5]
Many online users have already explained their fears about having their art stolen and converted into NFTs, in addition to calling it a "pyramid network" or "scam". NFTs have also been linked to cyber crimes of money laundering, border evasion and tax evasion as many of their transactions are made in cryptocurrencies without any kind of oversight.
Several YouTubers have had their channels turned into NFTs without their permission, including Stephanie 'Jim' Sterling, Sabersparks, and Caddicarus.
In March 2021, ArtStation announced plans to launch a proof of concept for NFTs, only to cancel the plans a few hours after the announcement due to the backlash from the artistic community.[6] In October 2021, Valve banned games that feature NFTs/blockchain technology from Steam.[7]
People who passionately defend NFTs are often referred to by the term Cryptobros. Notable fandom-related NFT projects include:
- Realms of Ruin, an NFT-focused planned universe cancelled due to backlash.
- Neopets
- Discord - When the site announced plans it was considering incorporating NFTs, many users of the app encouraged others to cancel their Nitro (paid service) subscription.
- Disney, Square Enix and Ubisoft are only a few of the entertainment companies that have either announced or have already incorporated NFTs in some capacity.
In January 2022, the video essayist Folding Ideas (Dan Olson), uploaded a video about NFTs titled Line Goes Up – The Problem With NFTs. The video spread, and now has just under 6 million views as of 24th February 2022, and is his most popular video to date.
References
- ^ You know what the crowning irony of the whole NFT by prokopetz on Tumblr
- ^ https://www.wired.com/story/nfts-hot-effect-earth-climate/
- ^ Longo, Eric (2021-04-13). "MCN Insights: NFTs are a scam". Museum Computer Network. Archived from the original on 2022-03-25.
- ^ https://www.nytimes.com/2021/04/13/climate/nft-climate-change.html
- ^ Ohlheiser, Abby (2021-03-25). "Some artists found a lifeline selling NFTs. Others worry it's a trap". MIT Technology Review. Archived from the original on 2022-04-12.
- ^ https://www.theverge.com/2021/3/15/22328203/nft-cryptoart-ethereum-blockchain-climate-change
- ^ Campbell, Kyle (2021-10-15). "Steam is banning all NFTs and cryptocurrency games from its storefront". USA Today. Archived from the original on 2022-05-09.