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What exactly are NFTs?

NFT stands for Non-Fungible Token. This means tokens cannot be exchanged or replaced, unlike bitcoin, which is exchangeable. NFTs are a digital proof of ownership of intangible goods. They are purely digital and can take various forms, such as a painting, music, or videos.

A token is the digitized form of an asset. The token therefore has a certain value or function. At the same time, however, real assets such as real estate or music rights can also be tokenized by transferring the associated rights and obligations to the token. This means that the ownership relationships are mapped digitally and are tradable.

How much energy do NFTs require?

In September 2022, there was the merge of the Ethereum blockchain with the proof-of-stake-based Beacon Chain. Before the merge, the energy cost of NFTs was as follows:

  • Creating an NFT (minting) cost 142 kWh, 57 kg of CO2.
  • Transferring ownership cost 52 kWh, 21 kg CO2.

This upgrade to “Ethereum 2” reduces energy consumption by 99.95% percent, increases speed and the number of possible transactions, and keeps the network secure and decentralized. So, studies show, creating and transmitting an NFT today requires less energy than sending an email.




How does blockchain technology work?

In general, a blockchain is a type of database that is made up of blocks that are strung together like the links in a chain. Each block contains the actual data that is to be stored in it and a unique hash value that ensures that the data content is unchanged. The hash value can be thought of as an electronic fingerprint. It is always unique and is used to identify the respective block. Since each block also contains the hash value of its predecessor, a chain (blockchain) is created. If a hash were to be changed somewhere in the chain, the chain would break. In this way, the data in the blockchain is safer from manipulation than in ordinary databases. This aspect is exploited by the so-called NFTs.

Why does NFT art have value?

In creating an NFT, creators transform virtual goods into unique and forgery-proof collectibles via the Ethereum blockchain – a digital certificate of authenticity. This gives the works a value that arbitrarily duplicated content cannot have. It is a business in which supply and demand determine the value. Crypto objects can be bought and potentially resold at a profit just like classic art. Or they can’t. Every art market fluctuates, and the crypto art market is no different. Rarity, utility, and notoriety are the three most important factors in determining the actual value of an NFT. For short- and long-term holding, the value of an NFT varies depending on the asset it represents.

What is MetaMask?

MetaMask is a secure digital wallet, also called a wallet. It is one of the most popular and largest platforms hosting NFTs. Through browser integration or as a mobile app, the wallet provides access to Ethereum-based tokens or assets.

We use MetaMask, one of the most well-known and popular Ethereum wallets, to transfer our NFTs to other wallets. However, the transfer can also be made to other wallets via ID, such as DeFi, as long as they are based on the Ethereum blockchain.

What is OpenSea?

OpenSea is the world’s first and largest Web3 marketplace for NFTs and crypto collectibles. NFT artists and creators can create NFTs on the platform and offer them for sale via open auctions, fixed-price offers, or individual price proposals.

How much will it cost me to get the NFT?

Receiving the gift is of course free of charge. The transaction costs incurred to transfer an NFT to a wallet are paid by the sender, in this case, SYZYGY Performance.

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