It’s no secret that NFTs have become a dominant force in world of crypto, art and gaming. NFTs (non-fungible tokens) hit the headlines recently when an artist named Beeple sold a digital image collage for $69 million.
From blue-chip companies like Nike and McDonalds to celebrities like Paris Hilton and Snoop Dogg, the NFT space has become more mainstream. Whether you believe they’re just a trend or a potential investment opportunity, NFTs continue to be a hot topic.
But what is the hype around NFTs? We cover everything from what they are, how they work and a lot more.
What are NFTS?
NFT (Non-fungible token) is a digital asset portraying real-world objects such as videos, music, art, in-game items, and even memes. The term “non-fungible” defines that every token is unique, and you cannot exchange it for something similar. This means there is a finite amount of each token/asset that can exist.
If you own the NFT, you own the official version of whatever it is you own. Most generally crypto is used to buy and sell NFTs.
How do NFTs work?
Whether the NFT is a GIF, JPG, MP3, its uniqueness can be purchased and sold the same way as any other art. Its price is fixed and determined by the NFT marketplace demand.
If you visit an art gallery, you’d see numerous replicated prints of it, so NFTs work similarly. You’d find some valid blockchain components, yet they wouldn’t possess the exact value as the original one. NFTs arrive with a license to the digital asset and the owner of that NFT has exclusive rights to the asset and its utility.
NFT’s are traded on marketplaces that operate on different blockchain networks like Ethereum, Polygon, Bitcoin Cash, A few examples of such marketplaces include – Opensea, SuperRare, Nifty Gateway.
How do I buy an NFT?
If you’re familiar with crypto, the process of creating an NFT is no different. Here are 5 basic steps to get your own NFT up for sale:
1. Create and fund your crypto wallet
2. Pick an NFT marketplace
3. Connect your crypto wallet to the NFT marketplace
4. Mint your NFT
NFTs are a fascinating evolution of both the blockchain and the market in digital arts and collectibles. Currently, the focus is on multi-million-dollar headline sales, but NFTs also create a sustainable economy for artists, writers, videographers, and musicians who struggle to monetize their work. And that’s just a little summary on what is an NFT and how to buy one. Watch this space for our next blog on how to create an NFT!
