NFT here, NTF there, you’ve probably heard this word before, but what is it really? For a few months now, the word NFT has been part of our vocabulary, but many do not know exactly what it means. If you are looking to understand why NFTs are trendy and especially to understand its 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 could be translated as non-fungible token. Even with this translation, it does not mean that we directly understand its meaning. Let’s see more precisely what the latter corresponds to.
Very often used with cryptocurrency, NFT is a unique and tamper-proof identifier. Thanks to a kind of digital certificate, you will be able to protect a digital work of art that you would have acquired. The latter would store the signature of the work, the name of the author, the style of the product, the date as well as a unique authentication code. An NFT can be represented by an image, a short video or by an illustration.
Nowadays, many public figures have acquired NFTs, however they do not all see the same interest in them. Indeed, it is a revolution for artists who can now to discover their style and their immaterial works of art. As an amateur, you can therefore acquire a work of art of which you will be the sole owner. Regarding copyrights, these are kept on a blockchain which will allow you to be the sole holder of your acquisitions. These are kept by the author of the NFT in question.
An upward trend has been observed for several months. Even the NBA starts selling the best stocks of different players during its games. This happens as an online auction and the highest bidder wins the action. Buyers therefore keep very fond memories of their favorite players. But, will this trend remain permanent or will it last a few months and then fall back down thereafter?
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This new trend has been around for 7 years now, but only a few months they are in everyone’s mouth. Some people therefore do not fully trust this new practice. and one could then wonder if this new fashion involves risks, if so, which ones? Any acquisition whether material or not involves its risks and even if the Blockchain is secure, it is better to insure your works of art. This will allow you to avoid any risk whatsoever.
Opt for Hiscox insurance for your works of art
Owning such valuable items should prompt you to insure them. Indeed, you may not have known, but it is possible to insure your works of art. Some insurances offer you coverage to protect your intangible objects. It is possible that you own NFTs at low prices, however some are set at very excessive prices and therefore require insurance.
Nowadays, we see an exponential increase in cyberattacks. A cyberattack falls into four categories:
- image damage
Hiscox is online insurance which offers you multiple services while insuring your works. It offers services tailored to your needs and desires. You can now make an estimate on the website, it allows you to understand the real importance ofinsure your artwork to keep it safe. This will perhaps allow you to be more serene in the face of a new technology that is not yet part of our customs.