Non-Fungible Tokens, better known as NFT, have gained a huge reputation this year. From art and music to everyday objects, these digital assets are selling for millions of dollars.
NFT is a digital asset, representing real-world objects such as art, music, objects and videos. Bought and sold at Internet, often with cryptocurrency and are generally encrypted with the same underlying software as multiple cryptocurrencies.
Although they have been around since 2014, NFTs have gained a special reputation lately as they become an increasingly popular way of buying and selling digital artwork. As of November 2017, $ 174 million has been spent on NFT.
NFTs are usually unique or at least very limited in number and have unique identification codes.
This is in stark contrast to most digital creations, which are almost always endless on offer. Supposedly, supply disruption will increase the value of a given asset, provided it is in demand.
But many NFTs, at least in those early days, were digital creations that already existed in some form, such as virtual NBA game video clips or titled digital art versions already on the market. Instagram.
For example, the famous digital artist Mike Winklemann, Known as "beeple, Created a complex of 5.000 daily designs to create perhaps the most famous NFT of the era, the "EVERYDAYS: The First 5000 DaysWhich was sold to Christie's for a record $ 69,3 million.
Anyone can see the individual images - or even the entire image collage online for free. So why are people willing to spend millions on something they could easily take a screenshot of or download?
Because an NFT allows the buyer to own the original product. Contains built-in authentication, which serves as proof of ownership. Collectors value these "digital rights" almost more than the object itself.
NFTs are made with the same type of programming as cryptocurrencies.
However, they differ in that each has a digital signature that makes it impossible to exchange one NFT with another, since they do not have the same value as, for example, two bitcoins.
Blockchain technology and NFTs give artists and content creators a unique opportunity to monetize their products.
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 NFT, which also allows him to keep more than the profits.
If you want to buy NFT, there are certain conditions. First, you will need to get a digital wallet that allows you to store NFT and cryptocurrencies. You will probably need to purchase a cryptocurrency, such as Ether, depending on the currency your NFT provider accepts. You can buy cryptocurrencies using credit card on platforms like Coinbase, Creak, eToro, even PayPal and Robinhood.
Some of the most popular NFT markets are Opensea.io, Rare and Foundation. At the moment the NFT market seems like a good investment. However, you should not forget that this is a very uncertain asset, the value of which is based on how much money someone is willing to give for it.