Cryptocurrencies are getting recognized and accepted by governments and global companies day by day. Cryptocurrencies such as Bitcoin and Ethereum, are helping to get higher the new digital entities. One of them as the known non-fungible tokens is NFTs.
What is this NFT?
NFT, is a common token platform for art and crypto. To give more explanation, NFT is a digital entity that is representing art, music, item in games and videos like objects in the real world. Usually, they are sold and purchased online and are coded the same basic software as most cryptocurrencies.
They were not that much disseminated even though they exist in 2014. However, NFTs are getting be popular to buy and sell digital artworks no longer nowadays.
Everyone who is interested in NFTs can display images or even all image collages online for free. Then why are people eager to spend millions on things that they could get screenshots or download?
Because an NFT let the person who is the customer has the original item. Furthermore, it includes built-in authentication that serves as proof of ownership. Collectioners are almost getting paid attention to these ‘’digital rights’’ more than the item.
How different is an NFT from a Crypto Currency?
NFT means non-fungible tokens and usually, they are created by using similar kinds of programs such as in Bitcoin and Ethereum but the similarity is end here.
NFTs are different because each of them has a special digital signature that there is no possibility to changed and matched. In other words, any video clip can not equal another video clip. NFTs typically are held in Ethereum blockchain but other blockchains support them as well.
An NFT is created from digital objects that is representing both tangible and intangible items including below as well:
• VIDEOS AND IMPORTANT SPORT EVENTS
• VIRTUAL AVATARS AND VIDEO GAME VIEWS
• DESIGN SNEAKERS
Additionally, we can count tweets. Jack Dorsey who is co-founder of Twitter, sold his first tweet as an NFT for more than 2.9 millions dollar.
In fact, NFTs are like physical collectors’ items but they are just digital entities. Thus, the customer is buying a digital item instead of putting the wall oil painting. Besides, they have private property rights. In other words, NFTs can have just one owner at the same time.
What Are NFTs Used For?
Blockchain technology and NFTs offer artists and creators a unique opportunity to monetize their wares. For example, artists no longer have to rely on galleries or auction houses to sell their art. Instead, the artist can sell it directly to the consumer as an NFT, allowing them to generate more profit.
In addition, artists can program in royalties so they receive a percentage of sales when their work is sold to a new owner. This is an attractive feature because artists often do not receive future revenue after their work is first sold.
Art isn’t the only way to make money with NFTs. Brands like Charmin and Taco Bell have auctioned off themed NFT art to raise money for charity. In this way, they earned very good money.
If you are eager to create your own NFT, you need to get some important items:
First, you need to get a digital wallet that is letting you hide your NFTs and cyrptocurrencies as well. Depending on your provider of NFT accepts which money currencies, probably you need to buy a cryptocurrency like Ethereum.
So why do people spend so much money on NFTs?
“By creating an NFT, creators can validate the scarcity and authenticity of almost anything digital,” says Solo Ceesay, Calaxy co-founder and COO. “Compared to the traditional art collection, there are an infinite number of copies of the Mona Lisa in circulation, but only one original. NFT technology helps assign ownership of the original piece.”
Selling NFT has been a lucrative business in the art world as well. Here are a few examples you may have heard of:
A 20-second video clip of LeBron James’ “Cosmic Dunk #29” sold for $208,000.
When you buy an NFT, other people can make copies of the picture, video, or digital item you own. However, like purchasing a unique piece of art or a limited edition, the original may be more valuable.
Autor teksta: Onurhan Öztürk, volonter (Turska)