Have you heard of NFTs?
Do you thoroughly understand what they are and how they’re used?
If things are still a little confusing to you, let us guide you through understanding this new and amusing phenomena.
NFT is a Non-Fungible Token. This means that it is unique and can’t be replaced with something else. They are “one-of-a-kind” properties in the digital world that can be bought and sold just like any other asset, even though they lack material form. Put simply, you can think of NFTs as a proof of ownership over something that you can’t really touch or hold in hand – a digital coupon, music, gifs or a piece of digital art.
Even though you still can copy a digital file, NFTs offer ownership of the work, and that, you can’t copy. Just like with crypto-currency, data of who-owns-what is kept on a shared ledger, or as you may know it, blockchain. The good thing for NFT owners is that this data can’t be forged because the ledger is supported and kept in check by thousands of computers around the globe.
You may be interested in NFTs for various reasons. Whether you are just interested in technological advancements, you’re an artist wanting to sell NFTs or you’re a buyer seeking to enlarge your digital art collection, you need to know the process of NFTs.
Firstly, we know that the making of NFT sounds complicated, but it is the contrary. Anyone can create an NFT. What you’ll need is a digital wallet, a small purchase of ethereum and a link to an NFT marketplace, where you’ll be able to upload your file into an NFT crypto art.
A cool characteristic of NFTs is that every time your NFT is sold or changes hands, it will pay you a certain percentage. So if your masterpiece becomes popular, you still get benefits.
Now, the sale of NFTs can vary depending on the platform of the marketplace. What you do is, upload your content to a marketplace, and follow the instructions which enable you to turn it into an NFT. Here you’ll also be able to add specifics, such as suggested pricing and description of your content. NFTs can be bought using ethereum or with using other ERC-20 tokens, like Flow and WAX.
Finally, if you want to buy an NFT, you can visit some marketplaces, like OpenSea, Rarible, Nifty Gateway and Mintable. However, we would advise you to consider each aspect carefully, before rushing into buying an NFT.
NFTs gained its fame in 2017 with the game CryptoKitties, which enabled players to raise and buy limited-edition virtual cats. From there, things certainly took off. On 19th February, an animated Gif of Nyan Cat was sold for more than $500,000. Just a few weeks later, Claire Elise Boucher (Grimes) sold some of her digital art for more than $ 6 million. The record, however, for digital art was set by Christie’s sale of an NFT by digital artist Beeple for $69 million.
NFTs are here to stay. They have made major inroads into gaming industries and they are just starting to grow beyond these initial applications. As the art sector already occupies a large portion of the overall NFT market, the prediction is that NFTs will continue in this manner.
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