If you have recently stepped foot into the cryptocurrency world, we are sure you’ve been hearing the word, “NFT,” and kept scratching your head because you didn’t know what it means. That being said, if you are clueless about NFT, we are sharing the complete guide with you!
NFTs are defined as non-fungible tokens that are specialized crypto assets and every token in it is unique as compared to the fungible assets like dollar bills and Bitcoin which are all the same amount for a specific note or coin. Since every NFT is unique, one can use it to authenticate and verify the ownership of digital products and assets, including virtual real estate, recordings, pets, and artworks. To know more about this new trend, check the website and visit now.
For instance, a ten-second video by Beeple was sold for $6.6 million online (it was in February 2021). Similarly, the platform named Christie’s announced that it will be selling the collage by a Wisconsin-based artist (the artist’s real name is Mike Winkelmann) and the college had over five thousand all-digital works. The college was set on the virtual auction at $100 for starting price. However, on 11th March, the same college was sold for a whopping $69 million.
Sure, the prices were high but there was another factor that everyone found so fascinating. This is because when the money exchange happened, the collectors who purchased the Beeple didn’t get anything physical as a receipt or manifestation (nope, there wasn’t even a framed print of the artwork). So, what they get in return is a popular crypto asset, known as NFT.
This is because every Beeple is connected with a different and unique NFT, the token that attested the version of the real one. According to Noah Davis, the contemporary art specialist of Christie, they are in unknown territory because in the first ten minutes of bidding, there were over one hundred bids from twenty-one bidders and they had reached the bill of one million dollars.
Importance Of NFTs
It wouldn’t be wrong to say that NFTs are the authenticity or verification certificates for digital products or artifacts. The NFTs are being used to sell an array of virtual artifacts and collectibles, such as virtual trading cards of NBA, video and audio clips from the EDM stars, video art by the Grimes, Nyan cat meme, virtual real estate in Decentraland, and the tweet by Mark Cuban and Dallas Mavericks.
Recently, the popularity of cryptocurrency and Bitcoin increased in popularity last year which has also resulted in the popularity of NFTs. This is because the NFT grew to over $338 million in the year 2020 and every NFT is secured on open blockchain – in the majority of cases, it’s stored on Ethereum’s open blockchain and anyone who is interested in it can track them because they have developed, sold, and resold.
This is because they are utilizing the smart contract technology and the NFTs can be set up to ensure the original artist is earning a certain percentage of the sales. Similarly, these NFTs have raised many philosophical questions about the sort of ownership. Now, if you are wondering why these virtual or digital artifacts have any value when they can be copied and pasted, it’s because many would say that collecting isn’t dependent on the inherent value.
When old comic books were designed for a few pennies with paper and ink, the limited edition sneakers are made from the same materials that are used to design worthless sneakers. Even more, some paintings find a way in the Louvre while some end up in the thrift stores.
What’s The Meaning Of Non-Fungible?
Every cryptocurrency has a worth but NFTs are unique. Fungibility is defined as the assets and goods that are the same but are swappable. For instance, concert tickets lead to the same concert but they are all different and unique and lead to a different seat, which makes them fungible.
Selling & Purchasing NFTs
The NFTs based on digital art are usually sold through specialized markets, such as Opensea, Rarible, and Zora. In addition, Coinbase NFT will make presentations, minting, exploration, and purchase NFTs easily – the platform will be coming out soon.