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I am curious about this new rising……umm….platform? Art platform? Blockchain?
Are you also curious about the same thing…..but hesitate to ask someone because of the fear that people will judge.
What’s the point of asking others when search engines are there? Simply Google your question and get rid of your curiosity.
If you are reading this article, it implies you have arrived on our page. This blog will explain everything (A-Z) about NFTs (non-fungible tokens).
Unless and until you live in remote areas with no connection to the outer world, or you literally live in caves, you’re certainly aware of this new internet phenomenon called non-fungible tokens (NFTs). The media hasn’t been tired of this topic ever since a South Carolina artist sold a digital collage for $69.3 million. Even more astonishing is the fact that the creation can be copied and posted by anyone else.
So what’s all this buzz about?
Let’s first start with the basics.
What Is An NFT?
non-fungible token
This doesn’t make things clear. Right! Sorry
This is what I knew earlier. Now, after doing lots of research and discussing with techies(doing this is hard), I think I can explain.
So, “Non-fungible” means that it’s eccentric (unique) and can’t be replaced with others.
Like a bitcoin, it is “fungible”—you can trade one bitcoin for another, and you can get exactly the same thing.
The original and unprecedented trading card is, however, called non-fungible. You will get something completely contrasting if you exchange it for a different card. It will be like, you gave up a Pikachu and got a Shock Man (Rock Force).
But, there’s a twist to it. NFT is just a digital thing that can not be imitated at its crux. As I said, it’s unique, one-of-a-kind. Digital items can be copied to infinity, so they are innately fungible.
For many, NFT art is the answer to their digital ownership.
non-fungible token —- receipt for NFT arts and other digital items.
However, don’t misinterpret NFTs as non-fungible tokens artwork and music. One can make use of NFT technology to produce ticket counterfoils that cannot be duplicated or reused. Some think of NFTs as an extra-secure replacement for contracts, leases, and deeds.
Digital assets like artwork or MP3s are still fungible if they are linked to an NFT. Because these files are still fungible, anyone can save them to their hard drive or mint them into a new NFT with a new “serial number’.
A Real Quick Rundown Of Blockchain
Well, they are pretty complex to explain. But the primary idea is that blockchain is the ideal method to store data without any trust in any company or entity to keep things safe and error-free. However, there are definitely some variations and peculiarities that you can glance through in our blockchain blog.
But most of the time, when users talk about blockchain, it is the technology they are talking about. There’s also a lot of dubiety whether non-fungible tokens are related to blockchain or not. We will see this in a bit.
I‘m already feeling like a tech expert.
Is this, do you think, the future of the artwork collection?
I’m sure many of you really think so- like the person who paid $6.6 million for a video by Beeple.
But, the awkward part here is that you can copy or download the same file as many times as possible for the same file the person paid millions of dollars for.
So, what’s the whole objective of NFT?
NFTs are created to give you something that cannot be copied, i.e., the proprietorship of the work.
To put it simply, anyone can purchase a Mona Lisa duplicated art print, but only one person can own the genuine copy.
The flex of owning the original Mona Lisa is……….
However, I also heard that NFTs had been busted for real this time. The sales have collapsed. I am not saying that NFTs are about to make a rebound. However, plenty of folks in the NFT community are sure they are still in the lap of luxury.
Let’s talk about apes! Why not? Everyone in NFT is talking about them.
The Bored Ape Yacht Club- if you haven’t heard about this, it is one of the most victorious NFT projects in which apes (each one designed with some unique characteristics) are sold for millions of dollars.
The company behind NFTs has developed a by-product cryptocurrency for a few hours and acquired other massive NFT brands.
What’s The Whole Point Of NFTs?
Well, it depends on whether you are a creator or a buyer.
Let’s first see from the artist’s point of view-
As an artist, you might be fascinated by NFTs because they provide a path to sell your artwork that otherwise might not have been sold. Plus, there are some NFT marketplaces where you can get paid a percent and a slice every time your NFT is sold or exchanged. This will ensure that if your work gets popular, your art value can balloon up, and you can see some real benefits.
From the buyer’s point of view-
One obvious point is that buying art can let you financially support artists you like or admire. Buying an NFT will also get you some basic usage rights, like being qualified to post the images online or set them as your DP.
Plus, of course, you will have bragging rights that you own a famous piece of art with a blockchain entity to back it up.
What if you’re a collector-
Yes, NFTs can also work like tentative assets, where you can purchase an art piece and hope its value increases one day so that you can sell it to gain a net profit.
Are NFTs In the Mainstream?
Well, it depends. If you are asking whether my mom owns one, the answer will be no. But, we have also seen celebrities and big brands like Marvel launching their own NFTs, which I guess is aimed at collectors rather than crypto enthusiasts.
So, in my opinion, we can’t call NFTs mainstream the way smartphones are mainstream.
Can I Buy This Blog As An NFT?
umm…NO, but anything cybernated present on the digital platform can be bought and sold as an NFT (even the articles from Quartz and the New York Times).
A person named William Shatner has sold Shatner-themed trading cards (one of which was allegedly an X-Ray of his teeth).
There have been many endeavors to link NFTs to actual-world objects, mostly as a sort of authentication method.
For instance: Nike has patented a method to verify a sneaker’s credibility using an NFT system, called CryptoKicks.
How Do NFTs Work?
Now, let’s move to a more advanced stage and learn how NFTs work.
First, NFTs inhabit the Ethereum crypto blockchain. It is a distributed public ledger that stores information about all the transactions.
Second, NFTs are considered individual tokens with valuable information held in them.
Third, since they have a value originally set by the industry and demand, they can be preferred and sold just like physical artworks.
Fourth, NFTs’ unique data makes it easy to verify the ownership and transfer of the tokens between the two parties.
Some NFT Examples
Some good examples of NFTs that are present in the market today are:
Use Cases for NFTs
People who are into crypto trading and love to collect artwork use NFTs. However, some of the other uses of non-fungible tokens are:
Digital Content
The primary use of NFTs is in digital content. Artists and content creators see their profits increased by NFTs. This strengthens the creators’ economy, where creators have control of their content over the platforms they use to broadcast it.
Gaming Items
NFTs have attracted considerable interest from all game developers. NFTs can provide a lot of ease and assistance to the users. Normally, during an online game, you can purchase items for your player or gaming character.
But with NFTs, one can recover their money by selling the items once they are done with them.
Investment and Collaterals
Both non-fungible tokens and DeFi (Decentralized Finance) have the same framework. DeFi apps can let you borrow money by using insurance. Decentralized Finance and NFT both work together using NFTs as collateral.
Domain Names
NFTs offer your domain with an easy hark back to names. This will work like a website domain name, making the IP address more valuable based on relevance.
The best part is that even popular personalities, like Snoop Dogg and Jack Dorsey, are getting engrossed in the NFT by releasing distinctive memories and artwork by selling them as asset-backed NFTs.
How to Buy NFTs?
After knowing this much about NFT and its advantages, you might be curious about buying NFTs.
Now, if you want to buy NFTs, you should know about some important points before you buy them. Let’s see what those points are-
1. You will require a digital wallet so that you can store your NFTs and cryptocurrencies there.
2. Then you have to purchase a few cryptocurrencies based on the kind of cryptocurrency your NFT provider accepts, most probably it will be Ethereum. To buy cryptocurrencies, you can employ platforms like OpenSea, Coinbase, Kraken, PayPal, etc. to buy cryptocurrencies.
3. Once you have made the crypto purchase, you can shift the crypto from the exchange to your crypto wallet.
NFT Marketplaces
Once you have got your wallet, you can buy NFT. At present, some of the popular NFT marketplaces are:
1. Rarible- It is a democratic marketplace that will allow artists to sell NFTs. It allows holders to contemplate features such as fees and community rules.
2. OpenSea- First you have to create an account on the OpenSea official website and search their NFT collections to discover artists. This marketplace is popular for its vast collection of rare digital items and keepsakes.
3. Foundation- In this marketplace, artists have to receive an invitation or send an invitation from their fellow creators to publish or post their art. The cliquishness of this community boasts superior artwork.
Top 5 Ways To Make Money From NFT
What’s the point of buying NFT, if you can’t make a profit out of it? Yeah, if you want to buy it for keepsakes, then it’s another thing.
Moreover, the top five ways to make money from NFTs are:
1. Play-to-earn games: These are some kinds of games that allow you to own the fortune you earn or unravel in a game. You can trade these non-fungible tokens on a marketplace or within a game’s store.
2. Collecting: There are various people who collect NFTs, spotting new artwork and HODL until there is an increase in their values (they can also decrease).
3. Flipping NFTs: This happens a lot, some people buy NFTs to sell them at a higher price. However, it can be risky.
4. Investing in NFTs: If you are serious about NFTs, you will have to find projects and invest in them.
5. Create your own NFTs: The good thing about NFT is that anyone with a computer can design NFT. You can now also create NFTs for free, although there are some restrictions.
Non-Fungible Tokens Time Ahead
Due to media exposure and some special perks for ambitious artists on social media, the popularity of non-fungible tokens has been enhanced.
If you remember, Jack Dorsey (CEO and Co-founder of Twitter) and Vignesh Sundaresan (Metakovan) bought 69.3 million dollars worth of NFT art on Beeple.
Because of the increasing popularity of NFTs, people are now willing to spend hundreds of thousands of dollars on NFTs.
To sum up,
Whether you want to invest in NFTs or not is a personal thing.
However, I hope this blog on non-fungible tokens has cleared all your doubts and confusion about NFT, how it works, its uses, and how you can buy them.
One thing is certain, NFTs are here to stay as they are making some people money and they are creating new possibilities for digital art and artists. However, we will still advise you to be cautious about the use of platforms.
And if you want to create NFTs or get into a blockchain, make sure you have the best blockchain developer.
You can hire a blockchain developer from Extern Labs with the guarantee of disrupting the blockchain marketplace for good.
You can discuss it with us here.
