What is NFT, 2022 ? Everything You Need To Know

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The ongoing NFT buzz has attracted every crypto and many non-crypto users towards the NFTs. High-profile celebrities, sports stars, and people around us are talking about NFT, also you must’ve read about NFTs being sold for millions. 

The Highest sold NFT was Beeple – Every day’s: The First 5000 Days – $69,346,250 (38,525 ETH) in 2021. 

So, What is an NFT? 

NFT – Non-Fungible Token is a digital asset like a cryptocurrency, both the assets are commonly stored on the Blockchain system. An NFT represents real-life objects like art, music, videos, land, and game elements.

Each NFT information is stored on Blockchain Technology and that makes NFT interchangeable, unique, and prove the ownership of the creator.

For Example, You create a piece or series of music, you can store(mint) that on blockchain technology (Just like you upload on a storage drive).

After upload, it will generate a unique address of this data just and will be stored in the wallet from where it is being minted. Only the owner can access those files.

This piece of art becomes an NFT and can be sold in an NFT marketplace.

Just like different Crypto tokens are built different blockchain networks

Types Of NFT

NFT’s can be categorized into Images, Music, Video, Game element, docs, Land or Space in a Metaverse.

Images – It could be a meme, an art or some Gif style.

Music – You can mint your own created music, a song, or some lyrics!

Video – Any kind of authentic video designed or Shooted that can attract the users (Videos are the less used NFT assets)

Game elements – The new web3 games offer NFT elements of the game like weapons, kits, clothing, and whatnot. When users connect their wallets and play the game, they can buy it in the game and use them.
Sandbox game can be the best example of that

Land or Space in Metaverse: If you have visited sites like Decentraland. It’s a Virtual space or land of NFTs that every user can experience. Users can own land in a virtual space, rent it out or sell it again.

Isn’t that Cool?

Interested? Learn about how to get Started with NFT

You can start with Buy your first NFT or Create a NFT

How to Buy an NFT ? Before you proceed to buy make sure you come across

• NFT ‘s are built on particular blockchain networks just like Cryptocurrencies , like Ethereum ( ERC20) , Binance ( BEP20 ) and Solana. Other Blockchains like Tron, Matic are also making efforts to enter the NFT space.
• NFT’s can be stored in your wallet just crypto assets
• You can buy NFT’s from Decentralized NFT Marketplaces by connecting your wallets. Some of the popular NFT marketplaces to go with are cryptokitties, cryptopubks, Opensea, AirNFT, mintable, rarible ..etc
• The NFT’s bought will be stored in your wallet and can be again listed to bid(sale) directly on the same network marletplace.

Thinking to Invest in NFT ? Learn some Pros and Cons

Pros

• Growth Vlaue : Authentic NFT works can see potetial growth, It could be a good investment idea. For example the owner of crypto punks #3100 bought the asset in 2017 for $2,127 and holded it till 2021 unless he got an offer for $7.5 m.

• Reserve ownership : Its like reserving your authority of your work, anything on blocklchain NFT is irreplacabe and represent the ownership , no matter how many times its traded.

• Reserve records : Art work are meant to preserve the autheticity, that’s possile with keeping records, Blockchain technology here is a game Changer. Everything happened to the NFT, since its created , traded and current holding , everything is on this decentralised ledger that cannot be altered.

• Exciting Space : The Blockchain technolgy behind NFT’s, seems to just begin and still such amount of excitement. There are possibilities of this stuff getting to everything and will lead a Big way ahead.

Cons

• Digitzing Physical arts isnt supported : Its very different to see, touch and feel the physicall art than to see it on a digital version.

• Uncertain value : The same blockchain technology is an opensource platform and anyone can copy the same NFT, mint them and list them. Investors feel this risk of loosing the value of art they are holding.

• Not Ecofriendly : Apparently, this has been a heat debate about how NFT are cosuming significant amount of computing energy. This computing and mining process is considered to be an unfriendly process.

Talk to your friend

• Explain what you learnt about NFT
• Share the Pros and cons
• Ask them how much they would pay for a digital art ?’
• Help them get started, if interested.

Also read some popular FAQ’s on NFT

Have any questions on NFT ? Go ahead and ask us, we can help.

Conclusion

Non-fungible tokens are one of their kind and thus they are becoming attractive as the days are passing. Not only the celebrities and the artists but the investors and crypto-enthusiasts are taking interest in this market. The future seems to be brighter for the NFTs. It is mainly due to its uniqueness and scarcity and different sets of characteristics that are bringing variety in the decentralized financial structure