NFT are non-fungible tokens but to understand this first see What does fungible means?
Anything which is fungible can be exchanged with another asset of the same value or similar importance, a simple example can be a currency, the 100rs you have has the same value as the 100rs of the person living next door has. So, this is not unique, whereas, on the other hand, the seven wonders of the world are unique in themselves.
So, what is NFT?
Non-Fungible Tokens aka the NFTs are digital cryptographic assets created using blockchain technology. It is a type of digital certificate for owning goods or an asset that represents a great variety of intangible and tangible items such as paintings, Designer sneakers, music, virtual real estate, postcards, videos, and so on. NFTs cannot be duplicated or associated with a similar asset, because each NFT asset is unique on its own.
These can not be exchanged with other things. They are unique, every asset has its true owner and has the right of ownership and more importantly, the fake copies can not even hold any place as the original item can be easily traced back to its authorized user.
You must be wondering when did all this happen?
So, this all started in the year 2017 with the first-ever Non-fungible token. It was a two-person team, John Watkinson and Matt Hall. It was released under the name Crypto Punks on the American Studio Larva Lab’s Ethereum Blockchain.
Projects using NFTs
- Crypto Kitties — In the year 2017, another project was released named Crypto Kitties that went viral immediately after its release. It’s a game built on Ethereum that allows players to collect, breed, and exchange virtual cats. Each kitten is different and can be raised, multiplied, and marketed. Collectively, these virtual cats moved millions of dollars, and some of the rare units were sold for hundreds of thousands of dollars each as much as $140,000. It’s said to generate an investment of $12.5 million.
2. Decentraland- This was launched in February 2020. It is a decentralized virtual reality world where players can own and exchange pieces of virtual land, create customized avatars, participate in governance, and trade rare digital collectibles and other in-game NFT items. Cryptovoxels is a related game where players can create, produce, and trade virtual property.
3. Crypto Stamps — They connect the digital world to the real world, and are issued by the Austrian Postal Service. These stamps are used to carry mail like any other stamp. But, they are also saved as digital pictures on the Ethereum blockchain, offering a tradable digital collectible.
Let’s walk you through some very famous examples of NFTS :
- Nyan Cat gif — an animated Gif of Nyan Cat was sold for more than $500,000 On 19 February, it is a 2011 meme of a flying pop-tart cat.
2. Jack Dorsey’s first-ever tweet, “Just setting up my twttr,” with bids reaching $2.5m sets up another hike in the market.
3. Beeple’s (real name Mike Winkelmann) NFT digital art nets £50m at Christie’s auction.
Now you must be thinking about buying NFT tokens but don’t know where you can, don’t worry we got you covered.
NFTs are bought on a range of platforms, and that you decide can depend upon what it is you wish to shop for. For example, if you wish to shop for baseball cards you are best heading to a website like digitaltradingcards, however alternative marketplaces sell additional generalized sections. You will need a wallet specific to the platform you are shopping for and you will fill that wallet with cryptocurrency.
With NFT generating so much global interest these days, there are various marketplaces for such activities like :
Future of NFTs
The investment in NFT is hotter than ever before. It is the new version of digital assets and by looking at its current growth it is not going anywhere soon.
The demand for the integration of NFTs with DeFi is driving several upcoming NFT projects to look out for in the future.
- Unifty is an NFT management hub that highlights copyright management and holds multiple blockchains, including Dai, Polygon, and Binance Smart Chain.
- Upshot is another project that will allow the crowdsourcing of appraisals to build an NFT’s value.
- NFTX will allow the making of community-owned index funds so that investors can grow exposure to several NFTs through the ownership of one token.