The term NFT is a hot topic throughout the internet in recent months. Everyone is talking about them. We’ve heard Jack Dorsey’s first tweet being sold for over $2.9 million in the form of NFT. a single jpeg digital art sold in the form of NFT for $69 million. This became the third-highest price ever paid for an artwork at auction. You’ll be shocked to hear that the same image can be found on the internet and can be easily downloaded by anyone. the person who’ve paid $69 million doesn’t even hold any copyright for that image. Well, that seems bizarre right? In this article, we’ll know what exactly are these NFT how they work, and are they actually as valuable as they are paid for?
What is NFT?
NFT stands as the short form for non-fungible tokens. Simply speaking it’s a token that proves the authenticity of the product. It’s unique and can’t be replaced with something else. The records of NFT’s are kept securely in ethereum blockchain and cannot be altered. For now, NFT’s are centered around digital arts but they can be in any form including video music and even fonts.
How do NFTs work?
NFT works just like cryptocurrencies but they store more information than that of cryptocurrencies. The extra information allows NFT to be in the form of music, video, digital art, and many more. NFTs work as the transfer of value among various people.
Are NFTs worth millions?
It is general economics that the value of the product is determined considering the demand and supply of that individual product. If someone is willing to sell the product for a million bucks and if a buyer pays a million bucks for that product then the value of the product automatically becomes a million bucks regardless of how dumb the product may be. Well, that’s the same case with NFTs. If both parties agree on a certain amount for NFT then that becomes the value of NFT.
NFTs are in a very early stage for now but the signs are promising. They can be very helpful especially for Creators and collectors along with musicians, artists, writers, and other creators. They can sell their work embedded with a unique digital signature that provides credibility and legitimacy which defines the ownership.