NFT, also known as Non-Fungible Token has been in news recently. While most people don’t know what it is or how it functions, they really get fascinated by the hefty amount people are getting by selling their creatives on NFT supported platforms.
The digital artist Beeple sold $3.5 million worth of art through Nifty Gateway last year. The artist behind Nyan Cat made around $600,000.
So, today in this article, we are going to talk about what NFT’s are and how you can take advantage of this new technology.
Before I tell you anything about it, it will really make sense once you go through the below topics.
Era of Cryptocurrency
When you save money to the bank, it may be your money, but the bank controls it. They can invest it anywhere, they can loan it to anyone. And whenever you do any transactions, there are many people and processes involved in making that transaction successful.
You own the money, but you don’t actually have control over it. And sometimes, bad decisions of banks holding these funds, make you suffer.
To solve this and remove any other third party involved in your money, a developer named Satoshi Nakamoto, created a decentralized currency called bitcoin in 2009. As this is hidden from any third party it’s called crypto.
The idea was really simple. It was just to have a cryptocurrency that will involve the receiver and sender only. As the government can print as much money as they want, Nakamoto didn’t want that to happen with the bitcoin.
So he created a process called blockchain where all the miners of bitcoin will verify a particular transaction and then only the transaction will be successful. In return, these miners get a small share of the bitcoin that is mined. This makes the cryptocurrency decentralized.
I won’t go too deep into it. You probably already know about Bitcoin and may have already invested some money in it. But it was really important to cover some basics before I can tell you about NFTs.
Era of NFT
Many people took advantage of bitcoin by investing in it or mining it. This made the bitcoin surge and now there are thousands of new cryptocurrencies in the market.
NFT – Non Fungible Tokens also work on a similar concept as any cryptocurrency. When doing cryptocurrency transactions, miners all over the world, verify those transactions.
Similarly, an artist can get a Non Fungible token created for their digital artwork and they are connected through cryptocurrency. Here also, all the transactions are verified by blockchain technology.
What is NFT Crypto In Simpler Words?
Let’s say you are a graphic designer and you create beautiful designs. You upload it on your website, but other people are using it on Instagram or Facebook directly by downloading it.
Though you are the original creator, there are several copies of your work distributed on the internet. And now, let’s consider a situation where this masterpiece created by you is just with you and no one has any copy of it anywhere. In that case, it will have much more value.
Consider the original painting of the Mona Lisa for example. Will it be worth more than any replica that you can buy in a gift shop?
It will be, right?
Same way NFT – Non Fungible Token recognizes that you are the original creator and using the blockchain technology lets everyone know that this is the original and is owned only by you.
Even if you sell your owned NFT, you get a commission on any further trade of your digital assets for your entire life. So let’s say you sell it to person A and person A sells it to person B, and then B sells it to person C and so on. You will receive around 10% of the sale amount every time your asset was sold to a different person.
Isn’t that amazing? A lifetime of a passive income!
NFT Market Place
Where to buy NFT crypto? Where to sell NFT crypto?
You can buy NFT crypto from any NFT marketplace. NFT market places are the online platforms that let you sell or buy your digital NFT assets.
Top NFT Marketplaces are:
- Rarible
- Open Sea
- Super Rare
How to trade on NFT Marketplace?
You will need to create an account on Rarible, Open Sea, or Super Rare and a digital cryptocurrency wallet to do the transactions. Most of the transactions happen in Ethereum as of now. So you need to buy some ethereum.
Once you have a wallet with some ethereum holdings and you have created an account on the above marketplace, you will have to place bids for the different assets there.
What do I think of Non Fungible Tokens?
I think this is just the beginning of the use of blockchain technology. There are endless possibilities of using it for making things secure and easier. You must research more if you are new to cryptocurrency before you directly jump into it.
All the information in this article are taken from the internet and we don’t advocate any website mentioned in this blog post. Using any of the website mentioned in this blog post is solely your responsibility and choice.