Non-fungible tokens [NFTs] are the latest craze in the cryptocurrency industry. It is not just institutional interest in the crypto world that has seen significant traction. For the past several months, the NFT sector has also been building a head of steam as big names continued to join in.
In the latest news, Ripple-developed, XRPL Labs is all set to enter the NFT market. In a long thread, the platform acknowledged that all assets on XRPL are referred to as “IoUs”. While a few asset class can actually be categorized as “tokenized” financial obligation, then there are those assets which are “regular tokens”.
XRPL’s tweet read,
“BY USING THE TERM IOU FOR ISSUED TOKENS ON THE XRPL MANY BUSINESSES AND INDIVIDUALS ARE NOT GIVING THE XRP LEDGER THE CONSIDERATION IT REQUIRES AS THE RAILS FOR ISSUING THEIR NETWORK/PLATFORM/PROJECT TOKEN. YOU *CAN* ISSUE YOUR *TOKENS* ON THE EXTREMELY FAST XRP LEDGER (LOW FEES)”
The prospect of NFTs on XRPL is an interesting development for the community. However, on this platform, the issuance will slightly differ from how it is carried out in the Ethereum network which happens to be the most popular NFT platform. The team behind the XRPL Labs summed up the same,
“P.S. ON NFT’S: “NON-FUNGIBLE TOKENS”. YES, THAT’S POSSIBLE TODAY ON THE XRPL. APPROACH IS SLIGHTLY DIFFERENT FROM HOW THAT WORKS ON EG. ETH, BUT DEFINITELY POSSIBLE. THIS MONTH AN INTERN (HUBERT) WILL START AT XRPL LABS, RESEARCHING & PUBLISHING ABOUT NFT’S @ THE XRPL.”
Besides, to help with the development and researching NFT’s on the platform from the perspective of art dealers, XRPL Labs announced the onboarding of an intern called ‘Hubert’.
Meanwhile, off-late, among some big names, Linkin Park’s Mike Shinoda sold his first piece of crypto art using the NFT. With this, the musician joined the likes of rap-rock icon Mike Shinoda, YouTuber Logan Paul, billionaire investor Mark Cuban among others in the booming trend of the soaring value of digital memorabilia where creators trade one-of-a-kind works for the special type of cryptographic token while retaining the artist’s copyright.
Expert Opinions on NFTs
Despite being a major topic of debate and discussion within the crypto space, not everyone is optimistic about what the NFT market has to offer. Litecoin (LTC) creator Charlie Lee, for one, opined that NFTs are unsustainable unlike “real art”.
Lee went on to explain that, NFTs are non-finite tokens and there is zero cost to create an unlimited number of tokens. While that is not the case with real-world art which requires effort and time to create a piece. He also illustrated that a famous artist like Picasso can only create thousands of pieces of art in his lifetime. The exec then argued that it is this limitation that creates scarcity, which helps keep the value high.