NFT (Non Fungible Token) stands for Immutable Token. NFT is a collectible digital asset that holds value as a cryptocurrency at its core. Just as art used to be seen as a value-holding investment, so are NFTs now. We all know the queues that form in stores for the newest product of a very famous store. NFT is the new digital equivalent of these queues.
You may have seen the term NFT very often lately. Let’s take a closer look at NFTs, which break search records on Google and can be bought as “Digital assets” at million-dollar prices.
Immutable tokens mean that it is an asset that cannot be explicitly substituted. It has unique qualities that make it different from anything else in the same asset class. Just like a picture, a theater ticket, a house, a video game look, a trademark, or a CryptoKitty, the first real use case to rise on the Ethereum blockchain in 2017. If you ask, “What is CryptoKitties?”, let’s make a brief explanation.
NFTs are not exactly a new phenomenon. CryptoKitties, a digital trading game on the cryptocurrency platform Ethereum, was one of the original NFTs and allowed people to buy and sell virtual cats that were both unique and stored on the blockchain.
NFTs are often used to buy and sell digital artwork and can take the form of GIFs, tweets, virtual trading cards, images of physical objects, gaming skills or skins, virtual real estate, and more. Verified on a blockchain, it is publicly verifiable. NFTs, on the other hand, are unique and cannot be mutually interchangeable, which means that no two NFTs are the same. The types of NFT are very diverse, but they can take the form of a digital picture, a music file, or even a “tweet.” Even tweets are worth as Twitter co-founder Jack Dorsey sells the first tweet. The price of this NFT is $ 2.5 million. Imagine you’re a physical collector, but instead of buying an oil on canvas to hang on your wall, you get a JPG file, for example.
How is NFT done?
Anyone can create an NFT. All that is needed is a digital wallet, the purchase of a small amount of Ethereum, and a connection to an NFT marketplace where you can upload content and turn it into an NFT or crypto art. Log in to one of the NFT marketplaces and upload a file. This process is called “printing” the NFT. You are often asked if it is a single instance of its kind, if there are multiple copies, or if it is part of a collection. When you browse an NFT site, you’ll actually see how easy this process is. Because people are trying to sell even plain, non-feature colors as NFT.
This Gucci ghost sold for exactly $3,600. Considering that anyone can make $3,600 by drawing this ghost, technically anyone can make and sell NFT.
It is believed that the NFT space will continue to grow with some popular use cases in the coming years. The end of the tunnel is bright for NFT, which can be used for Digital Art, Virtual Land, Gaming, Collectibles, Finance and much more.
How NFTs Work
NFTs are part of the Ethereum blockchain, so they are separate tokens with extra information stored in them. This extra information is the important part that allows them to get art, music, video (etc.) formats in the form of JPGs, MP3s, videos, GIFs and more. Because they carry value, they can be bought and sold just like any other form of art, and just as with tangible or physical art, value is largely determined by the market and demand. Still, it doesn’t mean that there is only one digital version of an NFT art available on the market. Just as art prints of an original are made, used, bought, and sold, copies of an NFT are still valid pieces of the blockchain – but they don’t carry the same value as the original. And don’t think you’re hacking the system by right-clicking and saving an image of an NFT. That won’t make you a millionaire because the file you download doesn’t hold the information that made it part of the Ethereum blockchain.
How to Get NFT?
Essentially, any digital image can be purchased as NFT. However, there are a few things to consider when buying, especially if you are a beginner. You’ll need to decide which marketplace you’re going to buy from, what kind of digital wallet is needed to store it, and what kind of cryptocurrency you’ll need to complete the sale.
Some of the most common NFT marketplaces are OpenSea, Mintable, Nifty Gateway, and Rarible. There are also niche marketplaces for more specific types of NFT (jerseys, balls worn at any football or basketball game, etc.). But be wary of fees. Some marketplaces charge a “gas” fee, which is the energy required to complete the transaction on the blockchain. Other fees may include fees for converting dollars to ethereum (the most commonly used currency for purchasing NFTs) and closing them.
How to Sell NFT?
NFTs are also sold on marketplaces, and the process can vary from platform to platform. You’ll essentially upload your content to a marketplace and then follow the instructions to convert it into an NFT. You will be able to specify details such as the description of the study and pricing. You can even earn a commission on the sale of the next owner after you.