Despite the fact that they’ve been there since 2014, NFTs are gaining popularity currently as a popular means to buy and sell digital artwork. Following are the things that you should know about NFT:
What is NFT?
A digital asset that reflects real-world elements like art, music, in-game assets, and videos is known as an NFT. In layman’s words, if you have a fantastic piece of art that you want to sell, you’ll have to deal with a lot of paperwork and stress. To eradicate all these hassles, NFT enters the scene at this point. Artwork may be “tokenised” with NFTs to generate a digital proof of ownership that can be purchased and sold. Nowadays, people have gained more knowledge about NFT than they did before.
NFT (Non-fungible Tokens) are non-fungible assets as its name suggests. A fungible asset is one that has easily interchangeable units, such as money whereas a non-fungible asset has unique qualities that prevent it from being interchanged with something else. The digital tokens might be compared to ownership certificates for virtual or actual goods. The buyer can own the original item through NFT.
How does it Work?
Many people have misconceptions about NFT, that it’s also a cryptocurrency like Bitcoin. It’s usually programmed in the same way as cryptocurrencies like Bitcoin or Ethereum. Cryptocurrencies and physical money are both “fungible,” which means they can be traded/swapped for one another. For example, One Rupee is always worth another Rupee, and one Bitcoin is always worth another Bitcoin. But talking about NFT, it is totally different.
NFTs are maintained on a blockchain, which is a decentralized public ledger that keeps track of transactions. The blockchain platform holds the details of their ownership or transfers. Each NFT possesses a digital signature that prevents NFTs from being swapped for or matched to one another. NFTs make tracking and verification simple. When you create or purchase an NFT, you have access to this digital asset as well as exclusive ownership rights.
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How much is its worth?
According to Forbes, Since November 2017, a whopping $174 million has been spent on NFTs. Although these arts can be viewed by anyone for free easily, the “digital bragging rights” are almost as valuable as the object itself to collectors. There is no fixed price tag for NFTs. The owner of the digital token can sell it at any price without any limitation.
How can I trade NFTs?
If you were aware of NFT before, you may also have known that there are various platforms available where NFTs are sold and bought. Some of the popular NFT trading platforms are Binance, OpenSea and Axie Marketplace. NFT trading platforms have no defined definition as they use distinct attributes to describe a wide range of assets.
Are NFTs, worth the money or the hype? Please feel free to comment your opinion about NFT and its hype in the comment section.