The global boom in non-fungible tokens (NFTs) on the internet continues. NFT technology makes it possible to certify the ownership, authenticity and uniqueness of digital works or art such as comic book drawings, videos, limited edition music albums or basketball collector images and even tweets. In some cases, the works are auctioned for millions.
According to a survey conducted by Bitkom Research, the German IT market research association, two-thirds of Germans know nothing about NFTs.
Eleven percent of those surveyed said they are familiar with the term, but don’t really know what’s behind it. Only seven percent of them said they have a rough idea of its meaning, and no more than five percent believe they know NFTs so well that they could explain the principle to others.
Non-fungible token means something like non-replaceable crypto value. NFTs are intended to convert digital images, drawings, songs, videos or texts into tradable digital assets.
An NFT is inseparably deposited in the respective audio, video, photo or graphic file as a kind of watermark. Any interested person can convert a file into a unique work or buy or sell an NFT file on the NFT creating, buying and selling platforms on the Internet.
The only requirement is to have a compatible personal digital wallet, like the one that is also required for cryptocurrencies and that is offered by numerous service providers on the network. There are also wallets in which both NFTs and cryptocurrencies can be stored.
Bitkom Research found that no NFT buyers were found among the survey participants. Of those who have already heard of NFTs, not even one in five (17 percent) see them as a possible long-term investment. However, a similar percentage, 16 percent, of this group believe that NFTs can be used to show their attachment to a brand or artists. Likewise, 16 percent would buy NFTs but do not know how they work.
Basically, NFTs work like cryptocurrencies. The creation and all transactions, such as purchases or sales (smart contracts), are forgery-proof recorded in so-called blockchains and stored on servers.
The Bitkom association points out that the potential use of NFTs need not be limited to digital works of art: vehicle registration documents, for example, could also theoretically be represented as NFTs as digital proof of car ownership. .
However, almost half of the respondents (49 percent) believe that NFTs are nothing more than a fad and that they will soon disappear again.
The survey interviewed 1,003 people over the age of 16.
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