All you need to know about NFTs
NFT’s have been a thing for a while now, and they are being more and more popular creating a trend of digital ownership. You must have heard of NFTs being sold for millions and might be wondering: what is NFT?
Let’s discuss what NFTs are, how they work, and why they’re so useful.
What are NFTs?
NFT Or Nonfungible tokens are a way to represent unique things or creations. Nonfungible means they can’t be replaced with anything else. Cryptocurrencies are fungible and can be traded for another coin, and you’ll get the same thing. NFTs are a kind of trading card that can be used to keep unique creations safe from plagiarism. It’s one of a kind asset in the digital world and can be bought and sold like any other property. NFTs can be considered modern-day collectibles.
Quantum, the first-ever NFT created by Kevin McCoy
When was first NFT created?
NFT was created way back in 2014 by Kevin McCoy. He minted his non-fungible token “Quantum”. Way before this crypto art market exploded. As of today, the one-of-a-kind quantum art piece 2014-2021 is on sale for seven million dollars.
How does it work?
Most of the NFTs are created and stored on the blockchain network Ethereum. Ethereim is a cryptocurrency like bitcoin and dogecoin but it also supports NFTs. Although some other blockchains have also started supporting NFTs. Different creations can be tokenized such as artworks, game items, or any digital asset.
As the underlying technology and concepts get advanced, NFTs could have many potential applications that go beyond the art world. For example, any college or organization could issue an NFT to students who have earned a degree and let employer companies verify an applicant’s academic credentials. Or event organizers could use NFTs to sell and track their tickets, potentially cutting down on resell fraud.
Difference between cryptocurrency and NFTs?
Although cryptos and NFTs both the technologies are based on the same blockchain technology. However, they both are created to cater to different purposes. NFT marketplaces require people to purchase NFTs with a cryptocurrency.
Cryptocurrency acts as a currency by storing value and can be used to buy or sell assets. Cryptocurrencies are fungible tokens similar to fiat currencies, like a rupee Or a dollar. NFTs create unique tokens that can show and verify ownership of digital goods.
Where can we buy NFTs?
NFTs can be bought or sold on different online exchanges or NFT marketplaces. Creator or the current owner can choose a price according to him or there may be an auction, and you’ll have to make a bid to buy that NFT.
1. Foundation
An exclusive community-based invite-only platform. Only Creators who are already using this platform can invite other creators to join.
2. Opensea
open sea is one of the first marketplaces to trade NFTs. It has all sorts of digital assets on its platform.
3. Super rare
Super rare is a marketplace that focuses on creating and trading digital arts
4. NBA top shot marketplace
On this marketplace, collectible moments( video clips and play highlights) and art can be purchased from the world’s premier basketball. League
Future of NFTs?
Future holds endless opportunities for NFTs as the new space transitions from raw and experimental to exceedingly more useful and mainstream.
Although NFTs haven’t existed for a long time, there are countless possibilities for how they can be used to secure unique digital goods such as Art, music, books and your brain download as AI. Similar to block technology, there is a good chance that NFTs could be a key player in the digital marketplace for years to come. It could be widely used by artisans who want to verify their original work. With time, NFTs are going to be more popular as mainstream artists have already started to discover the unique cryptocurrency. It’s quite challenging to predict the future, but for digital art collecting, it’s safe to say we have yet to imagine the extent of what will emerge in decades to come.
