I am curious about this new rising……umm….platform? Art platform? Blockchain?
Are you also curious about the same thing…..but hesitant 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.
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.
non-fungible token—-receipt for NFT arts and other digital items.
However, don't misinterpret NFTs as non-fungible tokens of 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’.
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.
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 users. Normally, you can purchase items for your player or gaming character during an online game.
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 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-
- You will require a digital wallet so that you can store your NFTs and cryptocurrencies there.
- 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.
- Once you have made the crypto purchase, you can shift the crypto from the exchange to your crypto wallet.
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:
- 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.
- 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).
- Flipping NFTs: This happens a lot, some people buy NFTs to sell them at a higher price. However, it can be risky.
- Investing in NFTs: If you are serious about NFTs, you will have to find projects and invest in them.
- Create your own NFTs: The good thing about NFTs is that anyone with a computer can design NFTs. You can now also create NFTs for free, although there are some restrictions.
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.