Introduced by Meni Rosenfield, in 2012 as “Coloured Coins”, an NFT is short for Non-Fungible Tokens. These are, in essence, digital art cum assets that one can buy.
Moreover, these tokens are valuables because they are crafted, collected, sold, or auctioned!
And, since these are digital tokens, any transactions related to them occur on the blockchain. All the information regarding the artistic digital asset is stored on the blockchain network including the owner’s address and the price.
The NFT could be an art piece, a picture, a sound clip, a video clip, or a GIF.
Features of NFTs
- Uniqueness – Each token is non-fungible. Each token is different, and each token is unique. There is only one copy of that particular art as a digital asset, so the existence of the NFT becomes as unique as fingerprints.
- Rarity – the property of being one-of-a-kind attracts attention from all NFT collectors. Everyone wants something rare, something unique, something only they can own.
The rarity of NFTs makes them more popular than other non-fungible tokens.
- Ownership – imagine if you could owe the Mona Lisa! Or Michelangelos’ Bacchus!? They are invaluable treasures to the world.
That’s what it means to own an NFT too! Unique digital assets with special characteristics. You could own the first-ever tweet from Jack Dorsey, the CEO of Twitter, or Chevrolet’s Corvette Z06 NFT – because they have a high value of originality.
- Indivisibility – What is yours is yours. The ownership of the NFT gets recorded on a programmed document called Smart Contracts. Thus, securing the ownership of the NFT.
In addition, no one else can claim it as theirs, because the ownership history is encrypted for the particular NFT in its blockchain history.
Working around NFTs
NFT isn’t a technology to understand its process in detail. However, you must understand how (where) to create one or where to sell one if you’d like.
Create your own NFTs
Did I say how to create one NFT? Yup! You can create your Non-Fungible Token! Anyone can! Of course, it’s going to be better if a graphic designing artist does it… but that doesn’t mean your art isn’t worthy of appreciation!!
Now, to make one, you’ll want to know – where to make NFTs.
NFT Marketplaces, that’s where! What’s an NFT marketplace? A platform where NFT enthusiasts can create, sell or buy NFTs. There is an ample number of NFT marketplaces that run on different blockchain platforms.
In addition, make sure you’ve entered the details of the digital art – name, description, price, and royalties if any.
Ownership transfer of NFTs can occur in any marketplace you explore. You can swap NFTs and utilize them as a payment means or buy one for the price mentioned.
A smart contract deploys on the blockchain with the terms of sale. Upon meeting the conditions, the sale/ exchange of the NFT occurs in an automated fashion.
Finally, the blockchain stores the NFT with its new address (owner’s address), and the accounts are credited accordingly.
Applications of NFTs
- Artistic credibility
We have all had a time when our friends copy our homework answers and call them theirs… It’s similar to artists too when we copy their work and don’t credit them.
NFTs ensure it credits the creator at all times in its history log with the artists’ address as the first address for the NFT. This then ends the long injustice of artists not receiving their credit.
Moreover, it cannot be copied due to plagiarism.
Luxury brands can mint NFTs of their products or limited editions, then sell them later for a higher price. NFT enthusiasts of the brand can feel good having not just a token but a potential asset that they can sell for a higher price later.
If you remember, sometime in the 2000s, Pokemon had released game cards to play with – many of the 1990s and early 2000s kids went crazy over it.
Well, we still have that craze, and some of us NFT enthusiasts and collectors don’t leave a chance to own a Non-Fungible Token and show off our pride and support.
And it’s the same for almost any NFT depicting a collection that comes out on the market.
Collectibles with a high value for their rarity, history, and uniqueness, are often sold at high prices.
NFTs are Non-Fungible Tokens, tokens that are one of a kind, cannot be copied, and can be swapped with – either for another token or for a price.
One can make NFTs and sell their own NFTs at different NFT Marketplaces. The ownership of NFTs is a big deal for those with a big reputation. One could show off their art or support a club. Thus, an NFTs prime service is a collectible.
NFTs are useful for trade, asset management, boosting reputation, and most importantly, credit artists.
Some of the stark features of NFTs are their uniqueness, rarity, indivisibility, and ownership.
So, pick up your pens and start crafting your NFTs today! Go big, Go NFT, and Go digital!