NFT Explained

Earlier in March, a new trend called NFT exploded and people started exchanging money for unexpected things. It blew up on social media that people are selling things that are absurd to them and a major discussion is going around. So let’s break it into it!

What is an NTF?

NFT is the abbreviation of non-fungible tokens. This definition itself doesn’t explain itself well so let us explain it like this: a thing that cannot be interchanged with money or anything at all just like security crypto token. For example, when we try to buy a computer it has a price which is calculated by the manufacturing price, labor, taxes, etc. However, in NFTs it’s really hard to put a price because it is unique. To give an example, Jack Dorsey, the founder of Twitter, sold his first tweet for $2.1Million dollars. We can take a screenshot of that tweet, or create it on Canva but we can never tweet that tweet because it’s unique. The best way to describe NFTs is the ownership of digital assets that are one-of-a-kind and unique.

With the integration of Web3 Authentication it's more secure from hackers and safe from other malicious softwares.

How Does It Work?

NFTs are often compared and found similar with artworks. Because artworks cannot be duplicated. The difference is that in the digital world everything is duplicable. With the help of NFTs, the file or work is changed into a thing that cannot be duplicated, and basically, an ownership certificate is created. Even though a file is tokenized it can be duplicated for sure which has happened to the Beeple however NFT enables the buyer of being the legal owner of the “original” copy. Collecting NFTs is pretty much like the new way of being a collector.

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What Are Some NFTs?

People are paying millions of dollars to NFTs these days and a lot of discussions is going around because NFT is easily applicable when it comes to art pieces. But the game is changing and the “unique” expression is evolving. People are discussing and getting amazed by the number of dollars exchanged over a JPEG file. Even the Nyan Cat GIF is sold for $500K. It got crazier with Jack Dorsey’s tweet and things are getting even strange which makes the conversation hotter.

Mars House sold for more than $500,000. It’s not actual physical home, it’s a 3D model of a house. It’s a digital asset minted by blockchain technology.

Crossroad Videoclip by Beeple for $6.6 M.

Gucci Ghost by Trevor Andrew for $3,600.

To find more discover from here.

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How to Create NFTs?

If you are an artist and you have good digital art one of the things you can do is to go to Rarible and use the create button to upload your digital art which can be a JPEG, PNG, MP3, etc. The file size should be below 30 MB. You can put a price or just put it on sale to see bids. To collect the payment you should connect a crypto wallet you have for ether coins and pay for a listing fee which is also called a gas fee.