NFTs have become the cultural phenomenon it sure planned on becoming. Moving into 2021, NFTs have already debuted on Saturday Night Life urging people to Buy NFTs tokens. Moreover, celebrities have not been shy about expanding their assets through NFT. After all, artist Beeple did make the headlines after selling his art on an NFT for $69 million. That’s right folks, $69 million.
Amongst this overwhelming NFT news and headlines, are you also left wondering what is NFT? Don’t worry, we are going to explain to you the ABCDs of NFT and how they work.
What is NFT?
NFT is a digital asset that symbolizes a unique object and is bought or sold through cryptocurrency. What kind of unique object, you ask? It could be anything from your latest pair of sneakers to real estate in Bali. However, the most common form of NFT to date has been art, music, and of course, memes.
NFT is short for Non-Fungible Tokens. As the name suggests, it is non-fungible. Therefore, every NFT is unique, hence impossible to duplicate. Furthermore, one can’t edit or remove NFTs either. This is because NFTs travel the world using blockchain technology.
ledger, whether it be NFTs or cryptocurrency. As a result, NFTs are highly traceable. And every
Blockchain networks are essentially digital ledgers. It records every transaction in its public NFT comes with a recorded history of transactions. Moreover, it provides extra security. Each NFT is easily verified for authenticity. Hence, fraud, theft, or counterfeiting are impossibilities.
How does NFT work?
Now that we’ve understood what is NFT, the question that arises is how do they work? As we had said earlier, NFTs are distributed on blockchains. Particularly, the Ethereum blockchain. Let’s understand what that looks like.
The first thing to remember is that NFT can store any information inside them. So, it can be videos, MP3, JPEG images, even GIFs, or tweets. This makes it possible for creators, specifically, musicians and artists, to share their work with their audience.
For instance, if an artist stores their artwork in an NFT, the NFT will have a unique code. Which makes it distinguishable from the others. Once the NFTs are on the marketplace, collectors are free to buy NFT tokens. Like a physical auction where the audience determines the selling price of a piece, in a similar fashion, digital art is also sold according to its demand.
However, the difference is that every time the NFT gets resold from this point onwards, the original issuer aka the artists will earn a royalty on it. For example, if the commission set is 5%, then the artist will receive 5% of the resale.
Secondly, now it is up to the creator if they would like to make copies of their work into different NFTs are cater to a wider audience. Or just stick to one special original. Regardless, NFTs have placed a lot of control in the hands of creators to make creative decisions without hesitation.
Where to buy NFTs?
As previously mentioned, investors and collectors buy NFT tokens from NFT marketplaces. There is a variety of options available for you to choose from when it comes to NFT marketplaces. However, we recommend choosing NFTically. It enables you to create your own white-label store for your brand and display your NFTs in front of an international audience. The user interface is also beginner-friendly, which means you don’t need any technical expertise or crypto knowledge.
Since NFTs are part of the crypto world, to buy NFTs you need access to cryptocurrency. To begin with, you will need a wallet. Popular wallets include Binance, CoinBase, MetaMask, and more. After you successfully create a wallet and mining some cryptocurrency. You can head on to any NFT marketplace and set up an account. Firstly, make sure you are comfortable with the interface and the platform is easy for you to navigate. Thereafter, connect your wallet and complete setting up your account.
Henceforth, you can start purchasing your NFTs. Select the one you want to buy, win the auction, sign off the transaction using your wallet and the NFT now belongs to you. You can keep it for yourself, show it off to your friends, update it as your desktop wallpaper. Otherwise, you also have the option to sell it to another interested buyer.
Can anyone create NFTs?
Lastly, the only question left unanswered is can just anyone create an NFT? In essence, yes. Of course, artists and musicians have years of experience backing them up, but that doesn’t stop others from creating collectibles.
Meme owner Atsuko Sato sold his Japanese Shiba Inu ‘Doge’ meme for a wild $4 million. That, my friend, is the power of NFT and meme culture.
So, yes pretty much anyone who understands what is NFT, can create, sell and buy NFT tokens. Nevertheless, they do have to fund the initial gas fees used for the energy consumed by a blockchain network to make transactions. The fees, kept as minimal as possible, can, however, be controversial.
Regardless, NFTs are leading digital art and the internet onto a decentralized crypto era and it is worth giving it a shot.
NFTically is one such platform that can help you in trading your Non Fungible Tokens. In NFTically, you can open your store in just a few minutes. Minting, selling as well buying are the options that NFTically provides their users. All you require is to set up a wallet, build your collections, put in your NFTs (which can be an image, song, video clips, etc.), and at last, list those NFTs up for sale.
NFTs are revolutionizing the way we think about ownership and value of digital assets, bringing together artists, collectors, gamers, and entrepreneurs alike. From virtual art collections to representing virtual lands in the Metaverse, non-fungible tokens…
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