Home Technology What are NFTs? Non-Fungible Tokens Explained

What are NFTs? Non-Fungible Tokens Explained

I’m sure you’ve likely heard about the term “NFT” for some time now. Well, NFT or Non-fungible token is a special type of cryptographic token which is a unique model of digital ownership backed by blockchain technology that was first set in motion by Cryptokitties in 2017. Non-fungible digital assets or tokens are unique goods that don’t have a mutual interchangeable value.

NFT is an emerging catalyst in the transformation of economies of the creative ecosystem. Any digital piece of art can be bought to the decentralized global marketplace backed by Blockchain network.

NFTs are a great way to empower the authenticity and ownership of unique digital collectibles and digital goods. This is done by registering the ownership of a digital object on a blockchain network.

Putting it in simple terms; digital collectibles, game items, digital artwork(gifs, design, etc), event tickets, domain names, and even social handles on Twitter and Facebook are some examples of digital goods that can be registered as NFTs on the Internet. However, NFTs can vary in their tradability, liquidity, and interoperability. That means the values vary from person to person.

Also Read: How To Create Your Own NFTs

Crypto-collectibles are an entirely new foundation of a multi-billion dollar creative industry. Recently, many creators like Beeple, Reisinger Andres, and many more, made millions by selling their craft through platforms like Nifty gateway underlying blockchain network.

NFT sold for $6,600,000 by Beeple on Nifty Gateway
An Art piece sold for $6,600,000 by Beeple on Nifty Gateway

Ethereum Token Standards: ERC 721 and ERC 1155

ERC-721(Ethereum Request for comments 721) was introduced as the first standard for representing non-fungible digital assets on the blockchain. Every NFT has a token ID that must be globally unique. It provides functionalities like transferring tokens from one account to another, basically transferring ownership of the NFT.

How to trade NFTs?

NFT is a mysterious tech trend and if you’re looking to trade your art piece, start with registering on some digital marketplace for crypto collectibles and non-fungible tokens (NFTs) like OpenSea, Rariable, and Nifty Gateway. Before registering, make sure you have an active cryptocurrency wallet.

Know more about how to Trade NFTs here.

Many Crypto advocates, Venture Capitalists, and digital creators believe that the technology will drive growth of the ‘digital economy’ through huge monetizations and will replicate the most inaccessible paradigms of the art world.

Why Jack Dorsey, Lebron James, and Kings of Leon getting so much attention?

Recently, Twitter Founder Jack Dorsey is the first one to sell his own Tweet as NFT on which, the highest bid has gone up to 2.5 Million Dollars. This has surely opened a new door in the NFT marketplace.

In 2019, NBA launched ‘Top Shot’ which is a marketplace backed by blockchain technology where users can trade unique NBA highlights in the form of short videos that has in turn generated over $230 million in sales by now.

image 4
NBA fans drove the prices of Lebron James highlight video into 6 figure NFT.

American Rock band, ‘Kings of Leon’ are offering their latest album “When You See Yourself”, as a collector’s digital item and is up for auction.

NFTs can be bought by bidding some amount on the NFT platform on an item in a particular time frame. The highest bidder gets ownership of the item.

You must be wondering why and who buys or trade these NFT’s. Well, anyone can see pictures or stuff on the Internet but it’s ‘ownership’ that creates value. That too on the blockchain. NFTs have some room to go mainstream, but will surely change the creative community ecosystem.

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Team Oyprice
A common byline for the team members of Oyprice.
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