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NFT Rush | Blockchain

16 October 2021  |  Blockchain, Emerging Tech

$Gari, an indigenous cryptocurrency token, was launched in India on 16th Oct 2021 by Chingari, a made-in-India short video app is also launching its NFT marketplace.

$Gari will have Bollywood actor Salman Khan as its brand ambassador, also present at its launch event in Mumbai. The crypto-token was developed in collaboration with Solana blockchain.

$Gari is advertised as a social token instead of a financial token, where creators will accumulate coins based on their content.

$Gari is said to help content creators on Chingari create their ecosystem by creating their own “e-commerce space for physical merchandise, NFT creations, and the ability for the fan community to fund” the artists on the platform.

Vishal Malhotra sold an (NFT) for 5500 USD this year; many Indian celebrities, including actors Amitabh Bachchan and Sunny Leone, have warmed up to the concept of NFT drops. Tokenization helps in bridging the gap between real-world business cases and global investors. There are more than twelve NFT marketplaces in India in just six months.

After Big B and Salman Khan, Suniel Shetty is the latest Bollywood celebrity to jump on the non-fungible token (NFT) bandwagon. Shetty is now an investor and advisor for Colexion, an NFT marketplace on the polygon network.

The underlying technology NFTs, or non-fungible tokens, is riding to the forefront of this new era. It’s no surprise that these digital assets are selling like hotcakes, with some of them reaching millions of dollars. The appeal of NFTs derives from their uniqueness because they cannot be replaced with similar products. Fungibility is a prerequisite for understanding NFT.

Fungibility is the ability of a good or asset to be readily interchanged for another of like kind. Money is a prime example of something fungible, where a $1 bill is easily convertible into four quarters or ten dimes, etc.

Like goods and assets that are not interchangeable, such as owned cars and houses, are non-fungible.,

NFTs are not cryptocurrencies in themselves, even though they are often bought and sold with Ethereum and Bitcoin. Cryptocurrencies, like USD, have fungibility. They are equivalent to each other in value. The amount you own does not change.

In the absence of any comparable value, NFTs are worth whatever the market is willing to pay. Any digital asset can be an NFT. To date, they include:

Colexion is a creative marketplace on the polygon network where fans can buy and trade in digital collectables connected with cricket and entertainment stars. On the site, fans can purchase ‘collectable card’ NFTs, including ‘autographed cards’, video moments, and other tokens.

The first Oscar-nominated movie released as an NFT was Adam Benzine’s “Claude Lanzmann: Spectres of the Shoah.” The first tweet by Twitter’s Jack Dorsey was sold as an NFT. The first NFT album was ‘Kings of Leon’s ‘When You See Yourself.’ News organizations and galleries seem to be joining in on the trend after art and auction houses (and billionaires). Quartz has converted an article into an NFT, a digital asset that essentially serves as its certificate of ownership and authenticity. They’re, however, not the first.

NFTs are analogous to the attestation; a digital certificate from the artist saying that this is a work created by me along with the artwork,” explains artist Laya Mathikshara, who recently exhibited works in a Delhi-based Terrain.

Artworks can be minted as NFTs and shall be preserved over the Blockchain forever. And artists have a chance to earn royalties for their artworks through the secondary market as well, unlike the traditional mediums.”

Artist Amrit Pal Singh explains: “The Blockchain technology enables us to generate (or mint) a unique digital token. It can’t be replicated, thus making it non-fungible. This token can be transferred from person to person like a physical object. Unlike regular digital files, the token cannot be copied or owned by multiple people. You can associate this token with a regular digital file (image, video, mp3, or anything), and that token makes it unique when combined with the file.

The tokenization of assets represents a real-world tradable asset, a value, stake, or anything in the business ecosystem. Once derived and formulated, these tokens could be traded, and the ‘ownership’ and the ‘value’ associated with each token would be transferred accordingly. This kind of ownership with customer-centric features like high liquidity, blockchain immutability, real-time executable smart contracts, higher accessibility, and the easily manageable platform has created an interest in today’s economy.

Why is it required?

Digital assets are mainly emitted by tokenizing an underlying asset with money-like properties (medium of exchange, value storage, and account unit). These are then deployed to a blockchain network for security and verification purposes. Once the process is complete, these assets could be swapped on a primary or secondary market exchange with the necessary infrastructure to realize these assets’ trading, settlement, and custody.

Industry 4.0 Breakthrough: The tokenization of assets represents the next significant milestone for blockchain technology.

Types of Tokens: There are many ways to classify the tokens; they can be single-use or multi-use, reversible or irreversible, authenticable or non-authenticable, cryptographic or non-cryptographic, and numerous other combinations are available. Although at a systemic level, Tokens are often divided into the following basis:-

Area of Opportunity: The new “tokenized” economy offers tremendous potential for creating a more efficient and inclusive environment among the industries of Finance, Real Assets, Healthcare, Sports, Enterprise.

From equity to human tokenization, the opportunities to generate “tokenized assets” is only limited by imagination.

The benefit of Asset Tokenisation:

Future Trend: Tokenization is a massive trend, a much bigger story than cryptocurrencies, initial coin offerings (ICOs), and even Blockchain. This year, at the World Economic Forum, there was a discussion about what assets might be tokenized, with examples ranging from property to agriculture. Although the ones that attracted the most of the deliberations were on the system ‘to enable farmers in emerging markets to raise finance by selling future crop yields.

Reference

Chingari’s $Gari Crypto Token, NFT Marketplace Launched in ….

https://www.indiannewsbox.com/chingaris-gari-crypto-token-nft-marketplace-launched-in-india/

Will NFT Marketplaces Become The New Insta For Indian ….

https://www.otcpm24.com/2021/10/14/will-nft-marketplaces-become-the-new-insta-for-indian-celebrities/

Fungibility Definition.

https://www.investopedia.com/terms/f/fungibility.asp

What Are NFTs? Non-Fungible Tokens & Crypto Art Explained.

https://envato.com/blog/what-are-nfts-non-fungible-tokens-crypto-art/

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