What is NFT? : Non-Fungible Tokens

You might have been hearing about NFTs in the news through friends or on social media. For example, Twitter CEO Jack Dorsey putting up his first tweet for sale as an NFTs which fetched him millions of dollars or an artist getting his digital artwork getting sold for around 70 million dollars and many such stories. So let’s get started to know what NFTs are and how they work.

What is NFT (Non-Fungible Token)

NFTs basically are unique crypto tokens managed on a blockchain. The Blockchain here acts as a decentralized ledger that keeps track of the ownership and transaction history of each NFT. NFTs are coded in such a way that they have a unique ID and other metadata that no other token can replicate in simple words NFTs are a one of kind assets in a digital world which can be bought or sold like any other thing in this world but the difference it will be unique 

How do NFTs work

In the real world, there are some things that are unique in such a way that there is no other thing same as that, for example, the painting of Monalisa which is one and unique. But in the digital world, anyone can have a copy of that and can be duplicated endlessly But with NFTs this digital copy of any artwork can be tokenized to create a certificate of ownership that can be bought and sold.  

Why use NFTs

Beepls’ art, a digital Artwork that had 5000 pictures collaged into a single frame, was sold for around $70 Million which was copied and shared over the internet millions of times. But when the picture was tokenized as an NFT it proved that the buyer will be the owner of the original work. NFTs give the ownership of digital work. 

How much value do NFTs have?

Anyone can Tokenize their digital work to sell as an NFT. 

You might be familiar with The animated Gif of Nyan Cat from 2021, a meme of a flying cat. Notably, It was sold for more than half a Mn US dollars.

Few days later a musician sold he’s digital artwork as an NFT for $6 million.

Twitter’s founder and CEO Jack Dorsey sold his first Tweet from march 21 – 2006 for a whopping $2.9 million to a Malaysian-based businessman. The Beeple art was sold for around $70 million.

Future of NFTs ?

There are mixed opinions about the future of NFTs. Some people believe that NFTs are the future and have been indulged in buying and selling things and some believe that the idea itself makes no sense to them.

Christie’s auctioneer Charles Allsopp says the idea of buying and selling things that have no physical existence makes no sense to him.

How can you Buy NFTs?

If you are a newbie there are  few things that have to be taken care of before buying an NFTs things like which market place to buy from what type of digital wallet will you require to store it. What type of cryptocurrency you’ll need to complete a sale 

Most common marketplaces for NFTs include Mintable, Rarible, OpenSea, Nifty Gateway, Valu, etc. There are marketplaces for specific niche types too. For instance, if you need NFTs with respect to basketball videos NBA Top Shot or would be the best place to buy from. Before buying be wary of fees they charge for the deal some marketplaces charge a hefty of a fee for a transaction.

How to make any art an NFT?

Any one of you can create an NFT. All you need is a digital wallet, some ethereum, and a connection to an NFT marketplace and you are good to go. You just have to upload the digital art and turn those arts into NFT. 

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Also read: NFT Marketplace Development Cost