What is an NFT? What they are and why they are becoming popular

What is an NFT? What they are and why they are becoming popular

Over the last couple of years, there has been a tremendous explosion in the interest of NFTs. They have become one of the go-to investments for most people. As a result, their sales are booming, with some even going for millions of dollars. The question is, though, is it merely hype or are these digital assets worth all these bucks? Join us as we explore the NFT concept and explain why these digital assets have become so popular.

What is an NFT?
A Non-fungible token (NFT) is a digital asset representing practical objects, such as music, art, and videos. Photo: Rafael Henrique/SOPA Images/LightRocket via Getty Images
Source: Getty Images

For the last couple of years, most investors and futurists have been looking at an NFT as the long-awaited digital answer to collectables. But sceptics are still not entirely sure about the effectiveness of this unique digital token. In this article, we will analyze what an NFT is and the reasons behind its sudden popularity.

What is an NFT?

To begin with, you need first to understand the NFT meaning. What does NFT stand for? It stands for Non-fungible tokens (NFTs). What is a non-fungible asset? It is a digital asset representing practical objects, such as music, art, and videos.

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When something is termed as non-fungible, it means that it is one of a kind and cannot be interchanged with something else. For example, the original painting or something special or someone, like Mona Lisa.

What is an example of an NFT?
An NFT refers to a one of a kind asset that cannot be interchanged with something else like the original Mona Lisa painting. Photo: THOMAS SAMSON / AFP) (Photo by THOMAS SAMSON/AFP via Getty Images
Source: Getty Images

These assets are viewed as ownership certificates for any virtual or physical asset. They are purchased and sold online, mainly with cryptocurrency. They have been blended with cryptocurrency security, meaning that you are getting a hacker-resistant, highly secure digital asset when purchasing them.

So, let us summarize the NFT explained concept using this question: what is Crypto art NFT? It is a one-of-a-kind piece of art that you can sell and purchase through cryptocurrency.

Why are NFTs popular?

Although these assets have been around since 2014, they are gaining popularity because they have become a popular way of selling any digital artwork. Statistics reveal that a whopping $174 million has so far been used on these assets dating from November 2017.

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They have also become popular because they assure investors that they are purchasing something original and not pirated. In addition, the asset comes with a certificate of authenticity, clear proof of the originality of the specific digital asset in question.

Why invest in NFT?
NFTs are becoming popular as they have an authenticity certificate proving an asset is not pirated. Photo: Jens Kalaene/dpa-Zentralbild/dpa (Photo by Jens Kalaene/picture alliance via Getty Images
Source: Getty Images

In light of this, most celebrities and brands have been jumping on the bandwagon of signing deals to release their digital assets soon. These include big names like UFC, Shawn Mendes. In addition, Elon Musk’s boo Grimes sold a digital artwork for $6 million in minutes. So, it is not just a craze but an excellent opportunity to invest.

Who has been using NFTs?

A vast category of individuals from different fields have been using these digital assets. These include digital artists, and individuals selling sports trading cards, digital houses, memes, tweets, music, augmented reality sneakers, and highlight reels. For example, Mike Winkelmann, a digital artist, recently made headlines after selling a digital asset titled Everydays: the First 5000 Days for $69 million.

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How Does an NFT work?

The unique digital assets tend to be “tokenized” to help create a certificate of ownership, which is bought and sold. Like with cryptocurrency, a record is maintained on a shared ledger known as the blockchain.

You will need to decide on which blockchain to use to issue these assets before you create one. Currently, the leading blockchain service for NFT issuance is Ethereum. However, there are other blockchain options like:

  • EOS
  • Tron
  • Tezos
  • Binance Smart Chain
  • Flow by Dapper Labs
  • Cosmos
  • Polkadot

Owing to the security of cryptocurrency, it is tough to forge or duplicate these records. Again, the records are maintained by thousands of computers worldwide, making it hard to hack such information.

How to Create an NFT

How to create an NFT?
Example of digital artwork from different artists is seen before the opening of CrypTOKYO Blockchain Art Exhibition 2021. Photo: Stanislav Kogiku/SOPA Images/LightRocket via Getty Images
Source: Getty Images

How do I get NFT Crypto? You can get this by creating the NFT token. So how do I create an NFT token? Creating an NFT is a pretty straightforward process. However, do not mistake creating an NFT for making money selling NFTs. You may end up creating these assets but never sell them, or if you do, you end up selling them for a meager price.

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You will only reap more from these assets by increasing their value, perhaps through association with an artist’s reputation, especially if it is an artwork. Nonetheless, all you need to create an NFT is to create an account with a verified marketplace that allows its users to do so.

Make sure you abide by the marketplace’s guidelines on how to buy the assets, how to install NTf mod, and so on. It is the only way you will master the process and reap more value from selling the assets. Where do you buy NFTs? You do so in marketplaces. The most popular 2021 NFT marketplaces for crypto traders include:

  • Opensea
  • SuperRare
  • Foundation
  • Rarible
  • VIV3
  • Nifty Gateway
  • NFT ShowRoom
  • Axie Marketplace
  • BakerySwap

Can you resell NFTs?

NFT you can sell
"My Muse" by Sonia Matas is one of the NFTs displayed in CrypTOKYO Blockchain Art Exhibition 2021 in Shibuya City. Photo: Stanislav Kogiku/SOPA Images/LightRocket via Getty Images
Source: Getty Images

You could buy an existing digital asset and then sell it in another marketplace. If not, you could create one yourself and then auction or sell it to a marketplace.

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What is the current NFT price?

The price tends to shift, which is why you need to stay updated with the NFT Price Live Data. Here, you will get the NFT price as of that moment, as well as the top exchanges for trading in NFT.

Is the NFT craze worth all the hype? Yes, it is. These non-fungible tokens allow you to securely sell and buy original assets like music, art, and highlight reels. They are a good investment, and several individuals have already earned millions from this investment.

READ ALSO: Most valuable South African coins (with images and infographic)

Briefly.co.za shared a post about the most valuable South African coins. Quite often, coins tend to be underestimated and associated with a low face value.

Most people believe they are not worth any investment. However, do not rule them out yet before consulting this list of the most valuable South African coins. You will be suprised!

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Source: Briefly News

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