By: Stacey Parker
NFT is a non-fungible token *and a non-interchangeable* unit of data stored on a Blockchain, a form of digital ledger, that can be sold and traded. In addition, Blockchain is a system where information is recorded in a way that makes it difficult or impossible to change, hack, and/or cheat the system. NFTs can be used to represent items such as photos, videos, audio, and other types of digital files. Cognize one vital aspect: you tend to scrutinize the website that sells NFTs, hence nowadays there are some fraudulent websites, companies, ergo, instead of a span-new NFTs, you would obtain some numbers, but won’t be able to retrieve your money.
Now, let’s take a closer look into some individual NFT projects. OpenSea is the leader in NFT sales. It has all sorts of digital assets available on its platform, and it's free to sign up and browse their extensive offerings. Another platform is called Larva Labs, which is best known for the viral CryptoPunks NFT project. They were originally given away for free back in 2017, but some CryptoPunks have sold for millions of dollars since then. Larva Labs has other digital art projects going, such as Autoglyphs, as well as other Ethereum blockchain-based app development projects. Similar to OpenSea, Rarible is another large marketplace for all sorts of NFTs. All kinds of art, videos, collectibles, and music can be bought, sold, or created on the platform; however, unlike OpenSea, you’ll need to use the marketplace’s own token Rarible (CRYPTO:RARI) to buy and sell on the marketplace.
Okay, but what is the point of NFTs? That utterly depends on whether you’re an artist, buyer, or even a collector. Buying an NFT usually gets you some basic usage rights, like being able to post the image or setting it as your profile picture. Besides, NFTs have a feature that will pay you a percentage of their earnings every time the NFT is sold or changed to another holder, corroborating that if your work gets catchy and puffs out in value, you’ll grasp some of that advantage.
In the exhausting and technical sense, every NFT is a unique token on the blockchain. Whilst it could be like a Van Gogh, where there’s only one actual version that is perceived, it could also work as a trading card, where there are 50 or hundreds of copies of similar artwork.
Intimidating Fact: We have seen big brands and celebrities, like Marvel and Wayne Gretzky, launch their own NFTs, which seems to be aimed towards traditional collectors, rather than crypto-enthusiasts.
°Non-fungible means that it’s unique and can’t be replaced with something else. For example, a bitcoin is fungible — trade one for another bitcoin, and you’ll have exactly the same thing.
°A non-interchangeable unit of date certifies a digital asset to be unique and therefore not interchangeable.
Sources:
Clark, M. C. (2021, August 18). NFTs, explained. The Verge Homepage. https://www.theverge.com/22310188/nft-explainer-what-is-blockchain-crypto-art-faq
The Ascent Staff. (2022, February 24). Best NFT Marketplaces. The Ascent. https://www.fool.com/the-ascent/cryptocurrency/nft-marketplaces/