A Non-Fungible Token [NFT] explains the internet's latest craze.
What Exactly is Non-Fungible Token? NFT Definition
Now, lemme elaborate it in a simple and easy to digest sentences.
Fungible means something you can exchange with one another and still have or give the same value. For example, I can give you N1,000 note and collect five N200 note from you. It's still fungible because the end products still yield the thing. So what does "Non-Fungible" actually means?
Non-Fungible is the opposite of Fungible, which simply means something that cannot be replaced with another thing no matter what. So all these stories simply describes NFT.
Non-Fungible Token, NFT in simple term - is a digital asset that cannot be replaced, and they are validated and stored using blockchains technology.
What you need to know about Non-Fungible Token, NFT.
- NFTs are unique digital assets that usually exits on blockchains technology.
- NFTs cannot be replicated or replaced. Instead, it's used to represent individual identity, Art work, Music, Properties, real-estate and lots more.
- The word "Tokenized" simply means the real-world tangible asset, it allow them to be bought, sold and traded seamlessly.
Who Invented the Non-Fungible Token, NFT?
Quantum is a pixelated image of an octagon filled with shapes that share the same Central, with larger shapes surrounding smaller ones and hypnotically pulsing in brilliant hues. The one-of-a-kind "Quantum" art project (2014-2021) is currently for sale for $7 million.
Additionally, the Twitter CEO, Jack Dorsey sold his first-ever tweet for $2.9 millions as an NFTs.
Why would I want to Invest in NFTs?
So therefore - NFTs are considered collector's object and their emotional value maybe factors for some.
How does NFTs Work?
This Ethereum blockchains technology helps store extra information that makes them works differently and assign owners identification.
However, with NFTs, special codes and meta data are added to a particular digital piece of work that makes it unique or to create a digital certificate of ownership. This is what you buy and sell as NFTs.
Additionally, the digital certificate of ownership ensures easy tracking and verification.
How to Trade NFTs
All you need to do is to find out what cryptocurrency platform your NFTs provider accept. You can buy coin from those platforms or buy from any of your choice (eg Coinbase, eToro, Coinmama) and transfer to the NFTs wallet.
Once you are done creating your NFTs crypto wallet, you can head over to NFTs market to start trading NFTs. Here's a list of some popular NFT marketplace.
- Nifty Giveaway
- NBA Top Shop (for basketball video highlight)
- Valuable (for auctioning tweet, such as Dersey's)
How to Buy NFTs
Most importantly, any digital stuff can be bought as NFT. But there are few things to look into when buying one.
First and foremost, consider what marketplace you wanna buy from, what type of digital wallet is required to store the asset, and what type cryptocurrency wallet is also required to complete the buying.
OpenSea, Rerible and some other popular NFTs market are mentioned earlier as place where you can start your NFT journey. Visit those market place to discover what and what are their recommendation when it come to digital wallet to store NFTs and Cryptocurrency to complete the buying.
How to Sell NFTs
Meanwhile, the process of selling NFTs are varies from platform to platforms. All need to do is upload your contents to a marketplace and follow their instructions to turn it to an NFTs.
How to Create NFT
At the marketplace, you will be able to upload your content and turn it to NFTs.
Now, here's the concluding part.
The Difference Between NFTs and Cryptocurrency
NFTs shift the crypto paradigm by making each token unique and irreplaceable, thereby making it impossible for one non-fungible token to be equal to another. They are digital representations of assets and have been likened to digital passports because each token contains a unique, non-transferable identity to distinguish it from other tokens. They are also extensible, meaning you can combine one NFT with another to “breed” a third, unique NFT.
Just like Bitcoin, NFTs also contain ownership details for easy identification and transfer between token holders. Owners can also add metadata or attributes pertaining to the asset in NFTs. For example, tokens representing coffee beans can be classified as fair trade. Or, artists can sign their digital artwork with their own signature in the metadata.
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