WHAT IS NFT ? HOW DOES IT WORK ?
WHAT DOES NFT STAND FOR ?
Non Fungible Token meaning that they’re unique and cannot be replaced or exchanged for another item of the “same value”
NFTs are digital assets that represent real-life objects such as art, music, video, and in-game items. They are typically bought and sold online, frequently using cryptocurrency, and are encoded with the same underlying software as many cryptos, but they’re not a currency.
I’m sure you already know about Crypto, but what you might not know all the awesome NFTs that are being developed by awesome game devs and artist and sometimes sold for millions of dollars.
Marketplace data shows that sales of non-fungible tokens (NFTs) have increased to $2.5 billion so far this year, up from $13.7 million in the first half of 2020. The most expensive NFT so far sold for $69 millions for one single picture made by an artist named Beeple.
NFTs has a lot of potential, so if you’re thinking about an investment art, this might be the place to look.
WHAT DO YOU GET WHEN YOU BUY AN NFT?
Before reviewing the different NFT marketplaces available later on in this article, it’s important to understand the definition of NFT. Non-fungible token (NFT) is a collectible digital asset. It holds value both as a cryptocurrency and as a symbol of art or culture. Just Like art, NFTs are a promising investment with considerable value.
NFTs are digital tokens and can be compared to a cryptocurrency. However, it is different in the fact that it is unique and does not allow like-for-like exchanges. Whenever you trade your NFT for another NFT, you are now in possession of a completely different digital asset.
WHAT IS AN EXAMPLE OF NFT ?
NFTs represent a wide range of unique tangible and intangible items, from collectible sports cards, game Avatars to virtual real estate and even digital sneakers.
One of the primary benefits of owning a digital collectible over a physical one, such as a Pokemon card or rare coin, is that every NFT contains distinctive information that makes it distinct from any other NFT and easily verifiable.
The circulation of fake collectibles is therefore pointless since each item can be traced back to its original issuer.
WHAT MAKES NFTs UNIQUE ?
Physical money and cryptocurrencies are fungible, which means they can be traded or exchanged for one another. Additionally, each one is equal in value – one dollar is always worth another dollar, one Bitcoin is always worth another bitcoin. The fungibility of crypto makes it a trusted system for executing blockchain transactions.
Non-fungible tokens are special tokens that represent unique, collectible items. They are unique in the sense that they cannot be split or exactly changed for other non-fungible tokens of the same type.
Unlike other online properties that can be modified or copied, NFTs utilize blockchain technology (which can be viewed as an official and irreversible internet ledger) to track ownership and to ensure that each piece of content is unique and indivisible.
However, they have exploded onto the digital art scene in the past year and are perceived as a way to make digital assets more scarce, therefore more valuable.
WHAT IS THE DIFFERENCE BETWEEN FUNGIBLE AND NON FUNGIBLE TOKENS ?
| Fungible | Non Fungible |
|---|---|
| Fungible tokens can be exchanged with other token of the same type with the same value (1 BTC=13 ETH). | Non fungible tokens cannot be exchanged with similar type of NFTs (NFTs are matchless and irreplaceable). |
| All fungible tokens are identical to each other. | NFTs are unique and not similar to each other. just like an authentic piece of art. (collectible). |
| Fungible tokens can be divided into smaller units. | NFTs cannot be divided, they’re an entire unit. |
HOW DOES NFTs WORK ?
Artists who want to sell their work as NFTs must sign up with an online marketplace like Mintable or Nifty Gateway, then generate “Minting” digital tokens by uploading and validating their information on a blockchain. It usually costs between $40 and $200 known to do so.
NFT marketplaces are kind of similar to eBay where artists can list their arts for auction.
WHERE CAN I BUY & SELL NFTs ?
If you want to start trading NFTs, you need a marketplace where you can buy and sell NFTs. However, the different online marketplaces each offer unique benefits and focus on specific purposes.
The current most popular NFT trading marketplaces includes Opensea, Mintable, Rarible and Nifty Gateway.
Remember: You will need to connect your crypto wallet and have Ethereum to start buying, because all of these platforms are operating on Ethereum blockchain.
Take a look at these four options to help you choose the best alternative among them.
#1. Opensea.
As of today, one of the most popular Marketplace OpenSea is valued at $1.5 billion and claim that it’s the largest marketplaces for digital goods. It acts as a decentralized P2P marketplace that facilitates the purchase, sale, and trade of rare digital goods.
A rare digital item could be an art piece, video game artifact, or a collectible; such items could be developed on NFT technology and run on Ethereum blockchain.
The OpenSea platform provides users access to digital trading of art, sports NFTs, decentralized domain names, digital collectibles, utility NFTs, virtual worlds, and trading cards. Additionally, OpenSea is the preferred platform of many prestigious NFT projects, such as Gods Unchained, Cryptopunks, Cryptokitties, and so on.
Wallet Integrations:
- Ethereum
- Metamask
- Arkane
- Authereum
- Dapper
- Bitski
- Coinbase wallet
- Opera touch
- Walletlink
- Torus
- Walletconnect
- Portis
- Unstoppable domains
- Fortmatic
- Mintbase
- Kaikas
#2. Mintable.
Mintable is a platform used for creation, distribution, purchase, sale, and digital trading of assets on the blockchain by using non-fungible tokens of NFTs.
Using Mintable, users can transform digital content into blockchain-based NFTs. The digital content could be in the form of books, images, videos, musical tracks, or even complex digital files. The user simply needs to fill in the details for describing their item and use the Ethereum blockchain to take their digital item to the public.
Users can browse the Mintable marketplace for making bids and buying digital items. The items are stored on the blockchain, and when you buy them, they go directly into your wallet.
Wallet Integrations:
- Ethereum
- Metamask
- Rainbow wallet
- Unstoppable domains
- Trust wallet
#3. Rarible.
Rarible is both a decentralized marketplace and a minting platform. The platform allows for the creation and sale of tokenized artwork. Rarible offers an incredible feature, which is the capability for adding different types of additional content to your artwork, such as hidden messages and high-resolution files.
In addition, Rarible was also the first to introduce a governance token like RARI in the world of NFTs. RARI token holders can submit and vote on proposals such as platform rules and fee management.
Wallet Integrations:
- Ethereum
- Metamask
- Torus
- Coinbase wallet
- WalletConnect
- MyEtherWallet
- Fortmatic
#4. Nifty Gateway.
The Nifty Gateway platform combines crypto technology and digital collectibles along with the use of artworks to create a marketplace of high-value, tradable assets. As a result, it can improve the investment potential of digital assets. Users with Nifty Gateway can buy and sell NFTs, aka Nifties, which are non-fungible tokens.
Nifty Gateway is a marketplace where music and art are sold under the supervision of the Nifty team. They’re also Providing artists and musicians with the resources to create NFTs for sale on the platform. Users who have NFTs can upload them using Metamask to Omnibus Wallet of Nifty Gateway. Nifty Gateway supports NFT deposits in Omnibus Wallet.
Furthermore, you can also apply on their website to become an NFT creator and sell your artwork.
Wallet Integrations:
- Ethereum
- Metamask
HOW TO CREATE AN NFT ?
If you want to create your own NFT artwork, whether it be a GIF, video, song or an image, you don’t have to have any extensive knowledge of the crypto industry to complete the process. you just have to go to an NFT marketplace like Opensea or Mintable and just click on “create” and then from there you can literally create anything you want and put it for sale. But remember there is a fee to sell and list your NFT online.
Since NFTs revolutionized the gaming and collectibles space, they have attracted a lot of crypto users and companies alike. A total of $174 million has been spent on NFTs since November 2017. Blockchain technology has enabled gamers and collectors to create immutable ownership rights over in-game items and other unique assets and also make money by selling them.
In some cases, players can create and monetize structures like casinos and theme parks in virtual worlds, such as The Sandbox and Decentraland. Additionally, players can sell individual digital items they accumulate during gameplay, such as costumes, avatars, and in-game currency, on a second-hand market.
OWN YOUR ART !
Artists may sell artwork directly to a global audience of buyers in digital form without resorting to auction house or gallery services, so that they keep a greater percentage of the sales price. That’s exactly what the rapper Tory Lanez did with one of his mixtapes, he sold 1 million copies of his NFT album (which was an Audio file) for $1 in 1 minute, making him $1 Million dollars in less than 2 minutes. they’re now worth thousands of dollars each. That is genius !
A royalty can also be programmed into digital artwork so that the creator gets a percentage of sale profits each time their work is sold.
DIGITAL ART IS THE NEW TREND !
Because digital art can be downloaded for free, it has long been undervalued. Artists can create financial value for their work by adding scarcity with NFTs. When collectors know that the original version of something exists, they are more likely to desire the “authentic” piece. Scarcity explains, for example, why collectors of baseball cards or even Pokemon cards are sometimes willing to spend millions of dollars for a card with a picture on it just because it is rare. Same goes for Digital pictures. For example :
- A digital collage picture made by an artist named Beeple sold for $69 millions.
- Avatars like CryptoPunks are worth millions of dollars each.
- The first twitter tweet was sold as NFT for nearly $3 million dollars.
- Bored ape NFT’s, created by Yuga Labs are worth between $1 & $18 Million dollars each.
The key market drivers for price are supply and demand, as with all assets. NFTs are rare and in high demand by investors, collectors, and gamers, so people are often willing to pay a lot of money for them.
Those are only a few example to show you the true potential of NFT’s And yes digital art is very unique, collectible and profitable.
ARE NFT’S GOING TO LAST ?
With the world becoming more and more digital, NFTs may be able to serve as an alternative solution for tokenizing property and ownership. By using these tokens, real-world assets can be digitized and stored, while still remaining secure. The NFT market is going to grow rapidly in the near future.
Blockchain technology is transforming how businesses and industries function, paving the way for blockchain professionals.
Collectible items are gaining ground as a form of investment. We see real value in them, and we’re seeing others do the same.
NFTs are digital, collectible tokens that you can trade just like any other item in the game. They can also be used as long-term investments because of their potential for growth, so why not try getting your share of the pie?
