Non-fungible tokens (NFTs): everything you need to know

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Bitcoin and Ethereum are the most popular and dominant digital coins in the metaverse. However, these are not the only digital currencies with value. Non-fungible tokens, commonly referred to as NFTs, are having a profound impact on different markets and industries. These tokens also play an important role in the digital economy as they have economic and non-economic value.

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What are NFTs?

Non-fungible tokens are blockchain-based tokens or individual tokens containing valuable information and unique assets such as artwork, digital content or media. In simpler terms, NFTs are essentially physical collectibles that are digital. Thus, through an NFT, instead of an individual purchasing a physical work of art, they would obtain an original but digital version of the work with exclusive ownership rights. NFTs also serve as a network of assets that can be presented and traded. The artists behind these digital assets can then sell their creations on crypto exchanges such as Ethereum, where they can convert their art into digital tokens and automatically receive royalties each time the art is resold. The tokens could also be used to take out a loan.

Why are NFTs important?

Non-fungible tokens are among the most incredible creations of the century, as the sale of these tokens has led to the emergence of various digital platforms that did not exist before. These platforms have opened new avenues for artists, creators and developers to sell and exchange their creative assets in digital and physical formats. NFTs create vast and stable economic opportunities for artists, content creators, collectors and publishers around the world. More and more digital assets are being sold or traded through these new and emerging platforms.

NFT technology has also enabled the collection of other digital objects and physical assets, including sports collectibles, land and clothing. The emergence of NFTs has helped artists, creators, developers, and collectors easily tokenize and monetize their works. How? NFTs are based on blockchains, a digital ledger of duplicated and distributed transactions across the network of computer systems on the blockchain. Blockchains are also a system for recording information in a way that makes it difficult, if not impossible, to modify, hack, or cheat the system. These digital blockchains mean that NFTs can connect artists with audiences or for identity management by cutting out middlemen and having creators deal directly with potential customers, suppliers or investors. Removing middlemen is cost-effective, allowing NFT sellers to reap all the benefits of their labor. In addition, NFT technology enables fast and simplified transactions, the emergence of new markets, and allows artists and collectors to derive greater profits from the sale of their works.

NFTs block the sale of counterfeit products

Fraud is an ongoing crisis in our world due to large quantities of counterfeit products, including clothing and artwork, being sold and presented as legitimate. This has negatively impacted the finances, reputation and legitimacy of many high value brands.

As mentioned, NFTs are created on a blockchain – a permanent digital ledger. Each token is designed in a unique and unrepeatable way; no token is identical. Each NFT serves as a digital representation of a digital asset or collectible being sold. Each token contains a unique, non-transferable identity to distinguish it from others. The blockchain technology used by NFTs thus enables precise and irrefutable records of the origin, authenticity and ownership of each digital asset sold, further allowing creators to benefit more from their works and blocking the sale of counterfeit products. .

The value of NFTs

In the first half of 2020, NFT sales generated approximately $13.7 million; a year later, more $2.5 billion was generated in the same period. In 2021 again, a group of NFTs by digital artist Beeple sold for over $69 million. The sale set a precedent and record for the most expensive digital artworks sold to date. The work was a collage made up of Beeple’s first 5,000 days of work. To show how marketable NFTs are, Jack Dorsey, the founder of Twitter, posted his first tweet where he wrote, “I’m just setting up my twttr”. It became the first-ever NFT release of a tweet, as it sold for $2.9 million.

Clearly, NFTs have created platforms and more emerging markets to create revenue. NFTs are not limited to digital art or real estate, but also clothing. The marketplace also supports NFT fashion products, such as the digital vest that RTFKT recently sold for $125,000. An NFT version of the New York Times column also recently sold for $560,000. According to a PwC report, it was mentioned that blockchain technology is expected to add $1.76 trillion to the global economy, and NFTs will account for a larger share of that capital. NFTs expand the entrenched markets around digital artwork, sports cards and rarities and create room for more platforms that can accommodate different creations, provided they are valuable. It is therefore evident that this rapidly growing market for NFTs is beneficial for artists and creates room for more earning opportunities in different industries, inherently leading to economic growth.. Bitcoin 360 AIa credible trading platform and news site, shares more information on how to sell NFTs, including detailed guides on where to buy NFTs.

How to buy NFTs

Most NFT collectibles are based on Ethereum. To buy the tokens, one would have to buy Ethereum. To buy ETH, individuals must have an account with a cryptocurrency exchange, where they will then send and store their crypto in a digital wallet. From there, one can connect their digital wallet to popular NFT marketplace platforms such as Opensea, Nifty Gateway, and Story.xyz and proceed to purchase and process their NFT.

Over the years, many creators, especially those still emerging in their field, have struggled to sell their works or bring their ideas to life because agents and intermediaries were needed to access and reach specific platforms. . However, the narrative has changed, thanks to ever-changing technology and innovations. Thanks to NFTs and blockchain technology, artists and creators in general now have the platform to sell their creations directly to a vast audience. Additionally, there is inclusive economic growth due to the massive influx of income from the digital and creative industries. Cryptocurrency is changing the narrative of global economies and industries, especially for disadvantaged people who previously had limited opportunities.

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