NFTs simply means Non-fungible token. NFTs are unique and they cannot be replaced by something else. For instance, when you trade a bitcoin you get another bitcoin. Anything digital ranging from music to drawings can be referred to as NFTs, but the current wave around NFTs is centered on using technology to sell digital art.
How do NFTs work?
Most NFTs belong to a part of an Ethereum blockchain and Ethereum blockchain is a cryptocurrency like bitcoin, but this blockchain technology allows NFTs to store additional data that allows them to work effectively. It is worth noting that other blockchains can implement their forms of NFTs.
What’s worth picking up at the NFT supermarket?
Ideally, a fungible asset is something with parts that is very easy to swap, something like money. With the money, you can exchange a 20$ bill for two 10$ bills and the value remains intact. But if it is non-fungible it means that this asset is unique and cannot be exchanged or swapped with anything else. For example, it could be a drawing or a very exclusive house, there will only be one type of that house or painting.
In the digital space, NFTs are very exclusive, unique, and they can be purchased and sold just like any other asset. It is just that they have no tangible form of their own. The digital tokens can also stand as a certificate of ownership for the assets whether physically or virtually
Any work of art such as paintings are extremely valuable because they are very unique but digital files can be duplicated without much hassle. With NFTs this work can be tokenized and a digital certificate is issued so they can be bought and sold.
As it is with any other type of transaction, the data of the owner of the NFTs is saved to a ledger that is referred to as a blockchain. This ledger cannot be forged because it is recorded by thousands of computers around the world. It may also include a contract that gives the artist a commission from the future sale of the token.
What’s stopping people from copying digital art?
Some people still duplicate NFTs even after a certificate has been issued and there have been several cases of this, especially with paintings or work of art. In some cases, the artists still hold the right of ownership of their work so that they can continue making more copies and sell them but the certificate shows that the owner of the NFTs has the original copy.
Where can you buy NFTs?
There are different platforms where you can purchase NFTs and it depends on the type of NFTs you want to buy, for example, if you want a baseball cap, your best bet is a site that sells stuff related to baseball. You will need a wallet or a card that is acceptable by the platform that you want to purchase your NFTs from.
Nowadays because of the rave of NFTs, they are mostly released at specific times and what this means is that you have to be prepared and have all your card details entered into the platform that you want to buy from so that when it is released, you can get it immediately and have a go at it faster than other people.
Who uses NFTs?
Simply because NFTs are the new rave, a lot more people are coming onboard, from artists to players, gamers. It is safe to say that each new day brings a new player on board and this is because NFTs cuts across the spectrum of culture.
NFTs serve as an additional safe space where artists can create and share their art with their admirers and it also makes it easy for their admirers to support them. With this, no matter the price, the artist can now offer the public a new way to buy their art and also make money doing so. It should also be noted that well-known artists can receive more money from their work but there are cases where an anonymous artist earns way more than a famous artist.
What makes NFTs so exciting?
With NFTs comes a bragging right and that right is called ownership right, NFTs allow the owners to authenticate their ownership rights. NFTs also allow for easy transfer of assets globally, even far more than any other collectibles.
NFTs also provide authenticity and with this comes confidence and assurance when you are buying it. NFTs are just getting started, there is still room for exploring, as time goes by, real estate concert tickets and so much more will also come on board.
NFT applications are still in their early stages. For instance, someone may decide to purchase online news articles as NFTs, and while this may appear to be a gross indulgence reserved for the super-rich, more practical applications are still on the way.
Before now, the crypto market has focused solely on bitcoin and others like Ethereum. But now, these tokens allow an artist to monetize their work by providing proof of ownership irrespective of how many individuals get access to copies of their works or even make use of it.
With any investments comes risk, while NFTs might still be relatively new, its major advantage is that there is still room for more growth and exploring, it is also a win-win situation for both the buyer and the seller and if anything, it allows you the satisfaction of knowing that you are not purchasing a counterfeit product but an authentic one.
Before investing in NFTs, it is important to carry out a lot of research. It is also imperative to keep an open mind because you never know what can be added to the NFTs market in the future. For this reason, it is important to be open-minded and this is not only for those who want to purchase but for those who want to put their work out there.