Utilizing Blockchain Technology Applied to Bitcoin
Granting 'Ownership' to Digital Assets to Create Scarcity
An image of one of the digital paintings from the 'War Nymph' collection recently sold by Grimes for 5.8 million dollars (approximately 6.5 billion won) [Photo by Twitter]
[Asia Economy Reporter Kim Suhwan] The singer Grimes, famous as the wife of Tesla CEO Elon Musk, recently sold a digital painting incorporating cryptographic technology for 6.5 billion KRW, drawing attention to the virtual asset technology applied to the painting called 'NFT' (Non-Fungible Token).
On the 3rd (local time), Fortune highlighted the case of Musk's wife and focused on NFTs, a virtual asset gaining worldwide attention recently. Fortune reported, "Since last month, investor interest in NFTs, known as the Bitcoin of the virtual asset world, has surged globally," adding, "Blockchain technology used in Bitcoin has begun to be applied to asset trading."
Earlier, Grimes, Musk's wife and a singer, auctioned 10 digital paintings titled 'War Nymph' as NFTs online, earning $5.8 million (approximately 6.5 billion KRW) in just 20 minutes, according to The Guardian on the 2nd.
NFTs utilize blockchain technology like Bitcoin and assign unique identification values to each digital product, including digital artworks, tweets, videos, and images. This allows individuals to have 'ownership' of digital products with unique numbers. Unlike Bitcoin, which is frequently exchanged on exchanges and whose ownership is transferred, assets with NFTs become non-fungible and cannot be copied.
This means that virtual assets such as digital paintings can be endowed with scarcity and uniqueness. Typically, videos or digital images can be easily copied or shared on computers without the concept of ownership, but digital assets with NFTs can be owned.
Even if someone takes a photo of an NFT-applied digital painting to make a copy, the painting still retains the 'owner's' information, and ownership cannot be transferred. This is similar to how a photo of someone else's passport held by a third party cannot be considered the third party's passport.
Especially due to the characteristic of scarcity, most virtual assets with NFTs are sold at high prices, and mainly wealthy individuals purchase these assets, according to The Independent.
As NFT virtual asset trading becomes more active, various forms of assets beyond digital paintings are reportedly being traded. The American rock band Kings of Leon, winners of the prestigious Grammy Awards, announced on the 3rd that they will release a new album in NFT form. CNBC reported, "This band will be the first to sell a music album as an NFT."
The digital painting in the form of an NFT titled 'Dragon,' traded for $170,000 (approximately 200 million KRW) [Photo by CryptoKitties]
Additionally, YouTuber Logan Paul, who has 22.8 million subscribers worldwide, sold a YouTube video in NFT form for $20,000 (about 22 million KRW), and a character image named 'Dragon' was traded for $170,000 (about 200 million KRW).
Fortune analyzed, "NFTs are ushering in a new era of virtual assets," but added, "Since they exist in digital form rather than as tangible assets, it remains to be seen how they will be evaluated in the future."
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