All You Need to Know about NFTs – (Learn in 5 minutes)
Blockchain changed the whole currency system and experts believe it is one of the biggest digital evolutions. Non-Fungible Token (NFT) is the recent addition where blockchain technology played its part to make people leave a lot of questions.
Any kind of art and music to tweets to memes to cats to tacos these digital arts are selling like hotcakes on the internet-some of these are for millions of dollars.
NFTs are having a bull run on the market which gives a topic for the debater to debate. Some are saying it is just hype and will fade away in the future. Some say NFT is the future and it will change all the investment systems.
What is NFT?
NFT stands for Non-Fungible Token. Non-Fungible means it has a unique property that can’t be replaced by anything else.
For example: There are millions of Real Madrid official jerseys around the world and imagine you bought one of them. You used the jersey for two years. It might look the same to other Real Madrid jerseys but it has unique characteristics because you wore it for two years. Now, this jersey can’t be interchanged with any other jersey.
A piece of land, famous paintings like Monalisa all are non-fungible examples because it is one of a kind. Both Monalisa and NFT are unique and NFTs can be bought and sold digitally with no tangibility like any other one-of-a-kind products.
How Non-Fungible Token (NFTs) Work?
Anything in the digital world can easily be duplicated. Since, NFTs are all digital assets you might wonder “How do you claim its ownership?” Yes, you are right. Digital files are easily duplicated. But with NFTs, all the digital arts are tokenized which creates a digital certification of uniqueness and non-fungibility.
NFTs work through blockchain technology and have similar programming properties of cryptocurrencies such as Bitcoin, Dogecoin. It is mainly built on Ethereum Blockchain technology.
Is It Really People Paying Millions of Dollars?
Yes, people are really paying millions of dollars for NFTs. Things like tweets, gifs, and memes are being sold for a huge amount.
The first twitter tweet has been sold for 2.9 million US dollars. People are going wild and crazy to collect NFTs on their name.
What is the point of NFTs?
Depends on the seat you are sitting on. There can be three main parties in a marketplace. Buyer, Seller and the Middleman. In the case of NFT marketplaces, buyers and sellers are regular people and the middleman is the blockchain tech people.
NFT is a great technology for artists. With this technology artists don’t have to wait for galleries to exhibit their arts. Most of the time, beginner artists don’t get good galleries. With NFT, they can sell their works directly to a consumer. Moreover, they can put royalties on their art so that they earn a percentage whenever their art is sold to a new owner.
Not just artists who are getting benefited by this technology. Photographers, musicians, Illustrators, everyone is getting benefited.
If anyone is a collector, NFTs can be a valuable thing. If they buy a token and the price goes high, they will earn a great amount of money.
Where To Buy NFTs and Should You Buy One?
There are lots of places on the internet where you can buy NFTs. But the main problem is that you cannot buy NFTs using regular dollar bills. You have to convert your dollar bills into cryptocurrencies and only then you will be able to buy one NFT.
Once you have converted dollars into cryptocurrencies and you have a wallet full of cryptocurrencies there are lots of places to buy NFTs. Such as:
Before purchasing NFTs you need to understand or learn about cryptocurrencies. Cryptocurrencies cannot be bought back and once you make a transaction it is gone forever.
With this in your mind you need to check every detail of the seller and be clear and hundred percent sure about the transaction.
Non-Fungible Token (NFT) are going high on trend and it is a present hype for most people. You can think of a great investment area and you might buy a NFTs for a handsome price to sell it in the future for more money. But remember, bull run is always tricky because it can go down any moment. So, you might face a big loss if you do not invest with care.
Excellent and informative content. As this is a very trendy issue nowadays, I was subconsciously searching for a content like this about NFT. Thank you Sazzad for your beautiful article. Waiting to read more.
Very well explained. This is so chock full of to-the-point info about NFT. Heard about this for the first time a few months back when a famous youtube video “Charlie bit my finger” was being sold as on NFT. Can’t wait to dig deep more into this trending issue – blockchain, cryptocurrency, NFT’s!
Actually from my side, I think this is going to be the biggest scam in near future. Rich people are gonna scammed into paying for things that literally anyone could just make a copy of it or could download the same thing. Because the owner has no copyright ownership, just owns the token :3 I might be wrong !!
The example was really helpful as I didn’t have any idea before. Thank you Sazzad Quadir.
Great article, informative. I am waiting for your next post.