NFT or Non-fungible tokens use cryptocurrencies’ blockchain technology to sell original versions of digital artifacts. In this article, we’ll discuss What is NFT, the basic concepts behind the technology, should you buy them or not, and more or less everything about NFT.
How it Works?
To create an NFT, the creator establishes a unique record of the artwork. Then the creator places the record on a blockchain, usually Ethereum’s, which requires a transaction fee known as gas. Possession of a private encryption key associated with the transaction proves the ownership.
Digital assets that represent real-world objects can be listed as NFT, like-
- Game skins/ Avatars
- Unique Designs
If you are curious to know more about Blockchain Technology as well as Cryptocurrency, feel free to check out the article where we have discussed a lot of concepts related to Crypto.
Related: What is the Future of CryptoCurrency
Is it a Bubble?
NFT is just hype or does it actually provide value in real? Jack Dorsey, CEO of Twitter, sold his first tweet as a Non-Fungible Token, for over $2.9 million.
As NFT often are addressed to new buyers, many of which currently have really high valuations, leading to fears of a bubble. NFTs have already been labeled a bubble by experts, with such sky-high pricing of digital assets, in some cases does not make sense at all.
Though you’re looking for smart short-term investment and have the intention as well as capability to resell your asset at a higher valuation, NFT can help you get a great Return on Investment.
Should You Buy NFTs?
Quick Tip: Let me clear something, Do not confuse NFT with NEFT, which are used for Fund transferring.
Nifty Gateway or the Blockchain provides the artists/ Creators with a royalty of 10% when their assets are resold via the previous buyer. As an example, a random ‘A‘ guy sold his artwork to ‘B‘ for $4 Million. When ‘B‘ sells it to ‘C‘, the ‘A‘ guy will receive 10% of $4 Million = $400000.
Where to buy?
After you’re convinced that how NFT can deliver you a consistent result with a recurring commission as well as in value appreciation form, you would be looking for the best marketplace to buy NFTs. The NFT Collectibles can be purchased from renowned marketplaces like-
Related: How to Earn Bitcoins for Free
Where to Sell?
Besides adding NFTs into the portfolio, If you’re more into exploring that how can you create your own NFT and sell it to others all by yourself, we got you covered.
Yes, It is really easy to sell your own Digital artifacts. So, where should you be looking for in order to sell your Asset?
- Myth Market
While NFT is a great concept to use blockchain technology to handle transactions of Artworks and Digital assets, In order to mint a piece of art on the blockchain and become the official token owner, an excessive amount of computing power and energy is used to solve complex problems in a process known as mining.
Ethereum, which is an open-source blockchain technology that hosts the majority of NFts, is currently estimated to consume roughly 44.94 terawatt-hours of electrical energy, which is comparable to the yearly Power consumption of countries like Qatar and Hungary.
Summing up everything in short about what is NFT, it is a blockchain-based technology that represents the ownership of Digital Assets with a unique token, can be owned by anyone within their crypto wallet.
In the previous decade, we have seen similar blockchain-based systems that held the almost similar concept of digital asset ownership, though at that time crypto was not something that regular people were aware of. We are not sure how far NFT is going to last, this article was just for educational purposes.
I hope the article on ‘What is NFT‘ was informative for you. See you next time, till then Signing off.