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What is an NFT and how does it work?

What exactly are NFTs? The new whim of crypto traders or a technology with a real benefit?
Focus on these Non-Fungible Token which will shake things up in the world of art, but not only…

NFTs (Non-Fungible Token), what are they?

NFT is the abbreviation of the word « Non Fungible Token ».
A “token” is a digital asset issued by a blockchain.

But first of all, what is a blockchain?

A blockchain is a technology able to keep track of transactions in a secure, transparent and decentralised way. A sort of collaborative directory. When we add a line in this directory, we create money: it is the cryptocurrency, such as Bitcoin or Ethereum, the equivalent of a regular coin or banknote.

When we add a line in this directory, we create money: it is the cryptocurrency, such as Bitcoin or Ethereum, the equivalent of a regular coin or banknote. On this same principle of blockchain, it is possible to create coins which are not interchangeable, the “Non-Fungible Tokens”, NFTs.

NFTs are different from other cryptocurrencies, as they cannot be replicated.

If you exchange a banknote for another banknote, or one euro for another euro, the asset will still be the same.

Whereas the NFT cannot be exchanged for the same NFT, as it is unique.

In this way, buy an NFT is like owning an unforgeable and unique digital title deed. A way to justify the ownership of a property and its authenticity, in other words, it guarantees that the creation is the original and not a copy. It is also a way to avoid the hacking of digital works of art at a time where artists post their creations on social media, like Instagram, which are platforms easily accessible to all.

Let’s take a more concrete example.
If you buy a work of art, or a piece of vintage jewellery, you will receive a certificate confirming its authenticity. It is the same principle that applies to NFTs. If you buy a digital work of art of an artist like Banksy, the NFT will certify that it is indeed the original and that it belongs to you.

What does an NFT look like?

Since NFTs appeared in 2014, a huge community of creators around this technology has developed. NFts are a new way for artists to make a name for themselves and be able to live from their art.

NFTs can take different forms such as: a work of art, a marriage contract, equipment for video game characters. There are endless possibilities.

The most expensive digital work of art ever sold is “Everydays: the first 5000 days” by the artist Beeple. It has been sold for 69.3 million dollars at a Christie’s auction.

Twitter CEO Jack Dorsey’s first ever tweet has been sold for 2.9 million dollars to Sina Estavi, CEO of the blockchain company Bridge Oracle.

NFTs are not only about speculating on digital works of art.

Indeed, in March 2021, a couple of employees working for the company COINBASE (an online and secure platform specialised in the purchase, sale and storage of cryptocurrencies) sealed their love on the blockchain.

Rebecca Rose and Peter Kacherginsky created an NFT under the form of two rings becoming one to represent their love. They concluded a smart contract based on the Ethereum Blockchain to make their marriage digitally official.

The two rings part of the NFT and the marriage contract will be recorded eternally on the immutable public repertory of the Ethereum network. They are visible in the wallets of the newlyweds.

In general, an NFT can take the form of any physical or virtual object, whether it is art, music or a contract.

Digital works of art can potentially be replicated. By turning them into NFTs, they are certified as the originals. This is made possible thanks to the blockchain.

The value of NFTs in the Collision project

Why use NFTs?

The whole Collision project aims at putting lunar, martian and iron meteorites in the spotlight.

We had to deal with this issue:

How can we guarantee the authenticity and the exact origin of the meteorites?

First, we worked with a professional in meteorite research and identification, Luc Labenne, who provided the identification certificates of the meteorites via the Meteoritical Society.

We had to find a way to deliver a certificate giving the different information related to the origin of the stone and the bracelet via our brand Spacefox.

That is when emerged the idea of NFTs.

Indeed

How do I obtain my NFT certificate?

By purchasing an IRON, MOON or MARS bracelet, you will be provided with a QR code. This QR code will redirect you on the MAIAR application in order to access your NFT hosted on the ELROND Blockchain.

You will find:

- The certificate of authenticity of the stone and the Collision bracelet, delivered respectively by Luc Labenne and Spacefox
- A Collision NFT, alter ego of your bracelet

The MAIAR application is the user interface which allows you to see the document, and to make sure that your Spacefox bracelet as well as the extraterrestrial meteorite piece is indeed genuine.

Why partner with the MAIAR application and the ELROND Blockchain?

Maiar is a simple and intuitive payment application offering a private, inexpensive and more secure alternative based on the Elrond Blockchain, in other words, an Exchange. An Exchange is a decentralised digital and non-custodial wallet which allows you to exchange and store money in a totally secure way on your mobile phone.

Maiar protects your assets and data by using encryption and advanced verification techniques to ensure that they are stored securely. In case your phone is lost or stolen, your private key can be used to recover your funds in a totally secure way.

It is the first application to use the cryptographic hash function for your phone number to generate your wallet of cryptocurrencies. In addition, this application does not store any funds, and has no access to private keys. Only the user has control over his money.

To use the Maiar application, you will only need a phone number, and nothing else.

You will be guided all along in the account creation process, thanks to the user-friendly graphic interface facilitating the claim of your NFT. You do not need to have any specific knowledge about NFTs and cryptocurrencies to use the application.

Elrond is a blockchain which allows to make fast and secure digitals payments. Elrond Gold (eGLD) is the native currency of the Elrond Blockchain.

Cryptocurrencies which are currently available on the Maiar application are the following:

eGold (EGLD)
Binance Coin (BNB)
Ethereum (ETH)
Bitcoin (BTC)

The MAIAR application and its Elrond Blockchain aim at becoming a reference in the world of cryptocurrencies by developing a user-friendly application accessible to all.

They work on developing a blockchain capable of competing with the technical functioning of a system such as visa, by offering the opportunity to secure 60,000 transactions per second. Visa can secure on average 5,000 transactions per second under normal conditions, and the Bitcoin Blockchain, only between 3 and 6.