NFTs (or “non-fungible tokens”) are a special kind of crypto assets where each token is different – as opposed to “fungible” assets like Bitcoin and dollar bills, all with exactly the same value. Because every NFT is unique, it can be used to authorize the ownership of digital assets such as works of art, recordings, and real houses or pets.
In February 2021, a 10-second video of an artist named Beeple was sold online for $ 6.6 million. Crazy na? Aside from the high prices, observers found another fact interesting. To get their money’s worth, collectors who buy Beeples do not find any visible representation of the work of art. Not even a standalone print. What they do find is an increasingly popular form of crypto assets called NFT – short for the unforgettable token.
Each Beeple piece is paired with a unique NFT – a token that proves that each owner’s version is authentic. “We’re in a very strange place,” Christie’s contemporary art expert Noah Davis told Reuters. “In the first 10 minutes of bidding we had more than 100 bids from 21 applicants and we reached $ 1 million.”
Why is NFT important?
You can think of NFTs as if they were digital artifact authentication certificates. They are currently being used to sell a wide range of visual collections, including:
> Virtual NBA trading cards
> Membership cards
> Music and video clips from EDM stars such as Deadmau5
> The first meme of “Nyan Cat”.
> A tweet by Dallas Mavericks owner and businessman Mark Cuban
> Real estate for sale in Decentraland
In this, the NFT raised interesting philosophical questions about the nature of ownership. Wondering why digital art can never be copied and pasted at all? Proponents of her case have been working to make the actual transcript of this statement available online. Old comic books were produced in the amount of ink and paper. Unusual sneakers are usually made of the same materials as non-functional ones.
As the collector who sold the 6.6 million piece of Beeple noted, you can take a beautiful photo of the Mona Lisa, but not the Mona Lisa. “It has no value because it has no origin or work history,” said a Beeple fan. “The truth here is that this is very important because of who is behind you.”
What does “non-fungible” mean?
All bitcoin is as expensive as all other bitcoin. NFTs, on the other hand, are all different. “Fungibility” refers to the same material or material that can be exchanged. The dollar bill is another perfect example – each is exactly the same as the dollar.
Concert tickets, by contrast, will not be fungible. Even if all Radiohead tickets are the same price, they do not exchange directly. Each represents a specific seat and a specific day – no other ticket will have those specific features.
Where do you buy or sell NFTs?
Digital art NFT is widely marketed in specialized markets such as Opensea, Rarible, Coinbase NFT, the NF3 social marketplace for NFTs, and Zora. If you love sports and sports collections, developers like Dapper Labs have created an experience that includes NBA Top Shot (real trading cards) and Cryptokitties (a Pokemon-ish digital-cat collection app that was actually the first NFT hit recently – 2017). Online games featuring Gods Unchained are starting to use NFTs to sell in-game property such as weapons or cosmetic upgrades. Homes for sale in the newly visible world are for sale in markets including Decentraland and Sandbox.
How do NFTs work?
If you are interested in DeFi, you may have heard about the ERC-20 standard, which allows anyone to create an Ethereum blockchain-compatible token. Those are “fungible” tokens. Many mold-free tokens are created using the ERC-721 and ERC-1155 standards, which allow creators to issue unique crypto assets with a smart contract. Because each NFT is stored in a blockchain, there is an unchangeable record that starts with creating the token and includes all sales.
What can you do with NFT once you have purchased them?
Good question! Some people showcase their digital artwork on large monitors. Some buy real estate (with NFT, of course) where they can build visual galleries or museums. You can also navigate visual worlds like Decentraland and explore other groups of people. For some fans, the appeal lies in buying and selling: Flipping- just like any other category of goods. (A collector who sold Beeple for $ 6.9 million paid less than $ 70,000 for it in October 2020). Many familiar artists have also become involved in the space – especially from the music world. In early March, the Nashville Kings of Leon band announced that their next album would be in the form of a number of NFT players. Depending on what a fan buys, a variety of benefits will open up – such as other cover art, limited-edition vinyl, and a “gold ticket” for a VIP concert.
Next we will learn how to create a Metamask wallet to accept crypto and NFTs. And I expect that you may have gone through our Learn and Earn Roadmaps 🙂
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