NFT is Non-fungible token.
Explained below.
“Non-fungible” is more or less means a unique token/id which cannot be replaced with something else. One such example is a bitcoin, which is fungible — trade one for another bitcoin and you will have the same amount. A Unique trading card, however, is called non-fungible. NFT - this new crypto-trend is the hottest topic in the digital space right now.
Working of a NFT?
At a very high level, most NFTs are part of the Ethereum blockchain. Ethereum is a cryptocurrency, like bitcoin , but its blockchain also supports these NFTs, which store extra information that makes them work differently from, for example, an ETH coin. It is worth noting that other blockchains can implement their own versions of NFTs. An NFT is the registration of ownership of a digital object on a blockchain. it can be any type of media including but not limited to art, videos, music, GIFs, games, tweets and memes. the non-fungible part means the object is unique, making it irreplaceable. ‘a bitcoin is fungible — trade one for another bitcoin, and you’ll have exactly the same thing,’ explains the verge. ‘a one-of-a-kind trading card, however, is non-fungible. if you traded it for a different card, you’d have something completely different.’
Should you trade in NFTs?
NFTs can really be anything digital (such as paintings, drawings, music, your brain downloaded and turned into an AI), but a lot of the current excitement is around using the tech to sell digital art.
Current popularity
Till march 12, 2021 NFTs have seen a historic, record-breaking sale. minted exclusively for christie’s auction house, a monumental digital collage by artist mike winkelmann, aka beeple was offered as a single lot sale at a whopping $69,346,250 to entrepreneur, coder, and blockchain angel investor metakovan, the pseudonymous founder and financer of metapurse. the sale of ‘EVERYDAYS: THE FIRST 5000 DAYS‘ (see artwork below) marks two industry firsts: christie’s is the first major auction house to offer a purely digital work with a unique NFT, and to accept cryptocurrency in addition to standard forms of payment for the lot. the sale also positions him among the top three most valuable living artists.
so why all the fuss around NFTs? they are proving to be a catalyst in the transformation of the economics of creative activities, allowing creators to monetize directly with their fans. being able to create artworks on the blockchain as NFTs means an artist’s content can be sold globally on decentralized marketplaces. as if that wasn’t enough, NFTs also have a feature that pays the artist a percentage every time the NFT is sold or changes owner.
