A Straightforward Guide To Non-Fungible Tokens
The internet has been one of the best places to make money for over a decade, and it’s starting to take over. With growing digital currencies, it is only clever that we get caught up with everything now.
Money has always been such a strange concept, but trust the internet to make it even weirder. We all saw how we interact with finances change with the rise of digital currencies such as Bitcoin.
Now, there is something even more groundbreaking and a little bit confusing in the digital currency market. If you are curious to learn more about NFT’s but want the simplest explanation, read further.
What Is An NFT?
An NFT is a unique digital token used to transform digital art and other collectibles into one-of-a-kind assets. NFT stands for ‘non-fungible token,’ which means that nobody can replace the unique token.
NFTs offer digital assets like art, videos, and music, a certificate of authenticity created by a blockchain. The authenticity and uniqueness of a token are what make it worth a certain amount of actual money.
Simply put, trading NFTs is like trading a unique comic book, pokemon card, or any other collectible item, but digitally. There is a digital ledger that details who owns each NFT, like the cryptocurrency listing.
The NFT technology first entered the digital market in 2015 but only gained vast popularity this February. Like everything on the internet, especially relating to currency, you need an open mind to understand it.
Do NFTs Give You Ownership Of Digital Assets?
While you can buy digital assets like artwork, memes, videos, and music, you don’t become the owner. NFTs give you access to the digital asset’s unique token, but the intellectual rights still belong to the creator.
As an NFT buyer, you simply own the record and hash code associated with the digital asset. Although you have bragging rights to the unique NFT, people can still use the digital asset online as they please.
To buy NFTs, you need to use a digital marketplace which is a platform that supports cryptocurrency. The platforms use what is called blockchain technology which keeps a record of digital marketplace transactions.
Most Impressive Digital Assets Sold So Far
NFTs are becoming one of the most lucrative ways for artists to make money these days. The unique tokens are selling for large amounts of money and even have niche marketplaces set up already.
Jack Dorsey, the Twitter CEO, sold the first-ever tweet for a whopping $2.9 million in March. The Kings Of Leon sold NFTs of their most recent album and made around $2 million from their digital token sales.
Basketball fans have access to a niche NFT platform that sells NFTs of game highlights like trading cards. A rare highlight video NFT featuring LeBron James sold for $179 000 on the platform called ‘NBA Shot.’
Digital artists should really consider NFTs to be competitive as it has proven to be a lucrative solution. An artist named Beeple auctioned an NFT for their artwork entitled Everyday: The First 5000 Days for $69.3 million.