The news about NFTs are all over and many have little knowledge about what NFTs really are but I will unveil NFTs – Non Fungible Tokens [What Are NFTs] in this article.
Let’s start by answering few questions about Non Fungible Tokens, NFTs
What are NFT?
NFT means NON FUNGIBLE TOKEN
in layman language it mean that the “token” value is determined by the person or community in possession of it.
How can I get NFTs?
One can buy on opensea or other NFT platforms.
NFT there can be audio,picture or video.
NFT are not crypto coins but cryptocurrency is used to trade NFT
How are NFT created?
There are created through a process called minting.
Where can one locate NFTs?
There are several platforms through which one can locate them, one of them is opensea.io
Can one make money selling NFT?
Yes, but it’s not a quick rich scheme. Let me explain further:
NFT’s value is determined by those in possession of it, thus it may not have much value when immediately created but over time as the community grows and maintains it’s value it stick and can be sold for any price.
Is it only one person that is minting NFT?
No, many people are minting and selling NFT in a daily basis.
The Basics of NFT (Non Fungible Tokens)
For beginners, the goal of this article is to simplify the concept of NFTs – Non Fungible Tokens [What Are NFTs] as much as possible.
Why are they called “Non Fungible Tokens”?
To begin, you must first understand the meaning of Fungible.
A fungible asset is one whose attributes are identical to those of another unit of the same asset.
Gold, money, and bitcoin, for example, are all fungible.
20 grams of gold in the United Kingdom is the same as 20 grams of gold in the United States. You could swap them around and they’d still be worth the same amount.
No matter how many different sheets are produced, $100 is still $100.
1BTC remains 1BTC regardless of the wallet in which it is held.
FUNGIBLE: To be fungible, something must be able to be traded or substituted without losing its worth. This means that fungibles can be swapped out. For example, let’s say I borrowed $10 from you via bank transfer, and when I paid you back, you gave me the same $10 in cash. This indicates that the money’s worth has remained unchanged.
NON-FUNGIBLE: A non-fungible asset is one that cannot be replaced or changed because it possesses unique characteristics that distinguish it from other assets. For instance, a one-of-a-kind digital artwork, an in-game object, and so on.
TOKENS: a visual or tactile representation of a fact, quality, feeling, or other concept. NFTs (non-fungible tokens) are a type of digital certificate that is held on a secure distributed database called a blockchain. So, nfts are blockchain-based digital assets with publicly verified intellectual property.
A Non Fungible Asset, on the other hand, is unique and cannot be readily interchanged with another, and its value is determined by the community.
Because of their uniqueness, NFTs can represent an Art, a photo, a meme, a tutorial, a skit, a tweet, a song, a music video, or virtually any digital content. NFTs are also ideal for real estate.
“Can’t I just right-click save the NFT without purchasing?” you might think. True, but you won’t be able to sell it for the same price as the original. Similarly, you won’t be able to locate a collector if you photograph the Mona Lisa.
Categories of NFTs
NFTs can be classified into the following five categories:
Collectibles: are products that collectors are interested in.
Digital Art: videos, pictures, and GIGS are examples.
Games: with digital objects, such as those utilized in competitive games.
Metaverse: is made up of fragments of virtual worlds.
Utility: refers to objects that serve a certain purpose.
Forms of NFTs
The most often practiced form of NFT is art. NFTs were created as a way for artists to sell their best works online as if they were actual items. Many of the most expensive NFTs are currently works of art. According to Luno, the most valuable NFT ever sold is by renowned artist Beeple’s “EVERYDAY’S: THE FIRST 5000 DAYS.” This piece fetched a stunning $69 million at auction. Other extremely expensive NFTs are breaking the financial accounts of billionaires.
Music is also high on the NFT scale.
For decades, music has been a fungible good, produced and distributed on vinyl, cassettes, CDs, and digitally. Musicians and DJs, on the other hand, have recently been selling their work as NFTs, earning millions of dollars in a matter of hours. Snoop Dogg just announced that he will be turning his Death Row Record Label to the first ever nft record label. Steve Aoki also confesses of making more money from his music nft sales than 10 years of his work, etc.
- Video Games Items
Another frontier in the NFT space is with video games. Companies aren’t selling entire games as NFTs. Rather, they’ll sell in-game content, like skins, characters, and other items. Nowadays, millions of copies of DLC assets are sold to players, but an NFT asset will be unique and exclusive to one buyer. Developers can sell regular DLC, but then sell a limited edition version of it on the NFT market. The most popular nft game is the Axie Infinity (AXS). Another popular one is the Sorare.
4. Trading Cards/Collectible Items
NFTs are similar to digital trading cards. We’ve all heard of limited edition baseball cards fetching hundreds of dollars, and the NFT market is no exception. On the market, people may buy and exchange virtual replicas of trading cards and keep them exactly like the real thing. Some sell for over a million dollars, just like the genuine thing.
- Big Sports Moments
NFTs offer something that doesn’t really have a physical equivalent: memorable sports moments. These are short clips of significant moments in sports history, like groundbreaking slam dunks or game-changing touchdowns. These clips can be as short as 10 seconds but sell for upwards of $200,000.
On the NFT market, you can buy and trade memes, just when you thought the internet couldn’t get any more interesting. What’s even cooler is that the individual in the meme is sometimes the genuine merchant. Nyan Cat, Bad Luck Brian, Disaster Girl, and other well-known memes are among those on the list, with earnings ranging from $30,000 to $770,000. The Doge meme, which sold for a whopping $4 million, is the most valuable meme to date.
As said above, an NFT can just be anything
Jack Dorsey, the creator of Twitter, sold the world’s first tweet for $2.9 million; this bit of news is what introduced most people to the world of NFTs (Non-Fungible Tokens).
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