NFT here, NTF there, you’ve probably heard this word before, but what is it anyway? For a few months now, the word NFT has been part of our vocabulary, but many are not quite sure what it means. If you want to understand why NFTs are trendy and especially to understand their interest, this article is for you!
What are NFTs?
Let’s start with its meaning, the acronym NFT means in English Non-fungible token, which can be translated as non-fungible token. Even with this translation, it does not mean that we understand its meaning directly. Let’s see what exactly this last one corresponds to.
Very commonly used with cryptocurrency, NFT is a unique and tamper-resistant identifier. Thanks to a kind of digital certificate you can: protect a digital artwork that you would have acquired. The latter would store the signature of the work, the author’s name, the style of the product, the date, and a unique authentication code. An NFT can be: represented by an image, a short video or an illustration.
Today, many public figures have bought NFTs, but they don’t all see the same interest in them. It is indeed a revolution for artists who can now to discover their style and their intangible works of art. As an amateur you can therefore acquire a work of art of which you become the sole owner. As for copyrights, they are kept on a blockchain that allows you to be the sole holder of your assets. These are kept by the author of the relevant NFT.
There has been an upward trend for several months. Even the NBA starts selling the best stocks of different players during its matches. This happens as an online auction and the highest bidder wins the promotion. Buyers therefore keep very good memories of their favorite players. But will this trend remain permanent or will it last for a few months and then regress?
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This new trend has been around for 7 years now, but it has only been in everyone’s mouth for a few months. Some people therefore do not have complete faith in this new practice. and one might then wonder whether this new fashion entails any risks, if so, which ones? Any acquisition, whether material or not, carries risks and even if the Blockchain is secure, it is: better to insure your artworks. This way you avoid any risk.
Choose Hiscox insurance for your works of art
Possessing such valuable items should encourage you to insure them. Indeed, you may not have known, but it is possible to insure your artworks. Some insurance policies offer you coverage to protect your intangibles. You may own NFTs at low prices, but some are set at very high prices and therefore require insurance.
Today we see an exponential increase in cyber attacks. A cyber attack falls into four categories:
- image damage
Hiscox is an online insurance that offers you several services while insuring your works. It offers services tailored to your needs and wishes. You can now estimate on the website, it allows you to understand the real importance ofinsure your artwork to keep it safe. This may allow you to be calmer in the face of a new technology that is not yet part of our practice.