2021 was a year dominated byfull of weird-yet-innovative stuff, say, Crypto. Blockchain, Metaverse and NFT. Frankly, they all are connected, somehow, STRANGE!
Let’s focus on the last bit: NFT. From three years since now—not many have the clue or (to be honest) interest—in the NFTs. Then how has it turned out to be a “new fad’ for the millennials and Gen-Z alike, recently?
Was it the pandemic? Which drives people to the pandemic to the internet? Or is it the prospect of a “goldrush” that is fueling the boom of NFTs? Maybe it is another Ponzi scheme to swindle people of their fortune?
Find out all the answers here. Read On!
What Exactly Are the NFTs?
Okay got it. Wait, a second, what is a non-fungible token now?
Non-fungible Token explained
Does understanding non-fungible tokens require learning what “Fungibility” is? Well, YES!
Fungibility is “an asset of an identical or similar value can replace or exchange by the other asset of the same value.”
Check, currency. It is a simple explanation of a fungible asset. Say you have ten one-dollars notes in your purse. You may not want to carry around so much change. So, you exchange them for a single ten-dollar bill. The value of your money is still ten dollars; however, it is now in a different form.
Now the non-fungible assets are just the opposite of it.
Each one is unique and cannot be easily replaced for something similar.
Take, forexample, theportrait ofthe Mona Lisa. It is a masterpiece anda genuine piece of art. And could not be the trade-off for a Mona Lisa placard from some randomgift shop.
The poster does not hold the same value as compared to the real one.
Get Back On The Topic
NFTs are, you can say, cryptocurrencies. Unlike fungible cryptocurrencies like Bitcoin, NFTs are unique non-fungible cryptocurrencies. This sort of cryptocurrency existed on a thread of numbers and letters stored on storage called Blockchain ledge.
The information stored in the Blockchain, tells who creates, sold, and owns the cryptographic tokensNFT. It was highlyencrypted securing the ‘digital asset authenticity and most importantly, scarcity.
Guess the plus point of it?
It, generally, solve the long-standing problem of digital creators and artist on the internet: Due to non-fungibility, their work became scarce which therefore ballooned its value.
Why So Hype About NFT Now?
A short answer: COVID-19
The pandemic (check stay-at-home orders) trapped people in their homes. Which, in return, turn peopleto the only best thing they found at their homes: INTERNET
Since the market of NFTs skyrocketed climbing to a market capitalization of $22 billion in 2021 from a mere $41 million in 2018.
However, there is also an earlier version of NFTs that existed, which was widelypopular, too. Called CryptoKitties. Where people buy or swap off unique virtual cats on the platform. It was, arguably, the firstcryptographic tokenkept on the blockchain.
Quick Question: How To Make An NFT?
Piece of cake!
NFT are digital images that can range from images, videos, gifs, and whatnot. You can easily set up cryptographic tokens with the following steps:
- Choose your NFT item
- Go to Ethereum (or choose another blockchain)
- Time to put up a digital wallet
- Select your marketplace (OpenSea, Rarible, and Foundation)
- Upload your file there
How To Buy NFT?
Buying these cryptographic tokens are in vogue now. You should also be aware of how to buy it.
- Choose marketplace (OpenSea, Mintable, Nifty Gateway, and Rarible)
- Connect your digital wallet
- Pick your favorite NFT
- Bid for them
- Understood now?
How To Sell Them?
Well, selling NFTs is one of the most fun parts. Follow these steps:
- Go to the NFT page
- Press the Sell Button
- Select your price to sell
- Set up the auction
But Not EveryThing Is Merry
Like, when you buy NFTs, they don’t actually, come in physical form. Plus, anyone can download your NFT anytime for FREE.
- So, what do you get in buying cryptographic?
OWNERSHIP. You only get the ownership of the NFT, which is stored on the blockchain. Blockchain prevents anyone from preventing it.
To make things even weirder: the buyer may own the original NFT – but the creator of the NFT holds the exclusive copy and reproduction rights.
Cryptocurrencies Smart Contract & NFT?
Basically, NFTs are smart contracts that live on a blockchain. So, the contract stores the (unique) information or properties of NFT and also keeps the information about the former and current owners. Plus, these cryptographic tokens nftNFT can be programmed to give royalties to the creator every time they exchanged hands.
But What About Turning into Millionaire or Pauper Stuff?
You can make millions by merely selling a “digital image.” There are many expensive examples to prove it.
- Take, for example, The Merge by Pak Sells; was the first NFT to sell close to $100 million with multiple owners, making it the most expensive unique identifier ever sold.
- The second in line, Mike Winkelmann aka Beeple, an artist whose digital art goes under the hammer for a whopping $69.3 million.
- Even simple tweets are worth millions (if they belong to an influential person). Like, JackDorsey, chief of Twitter, whose first tweet sold a cool $3 million.
But here is the catch: When you buy NFT it’s is a long list of codes, stored in Blockchain that runs through a gateway online. So, consider the gateway which was hosting your gateway tripped or goes down; you will lose all your life’s wealth, in this case, NFTs.
On the other hand, NFTs pumped an insane amount of energy to function; which was detrimental to the environment.
NFTs are HUGE nowadays but at the same time, it has checked all the boxes to make it a bubble in making.