Non-fungible Tokens (NFTs) digital tokens created with the help of blockchain technology. These tokens connected to any form of art like painting, music, video, GIF, or website. They cannot be divisible or replaced like cryptocurrencies. The world’s first NFT project launched on the Ethereum blockchain in the year 2015.
Many celebrities and business officials are investing their work in NFTs as the market became huge over the years. This new blockchain technology allows artists to monetize their work and gain a wider reach. According to reports, the sales exceeded $2 billion in the first quarter of this year which is double that of the previous year. To learn more about NFTs, read the complete article.
Why Does This Story Matter?
In today’s world, everything is getting plagiarised and it has become difficult to find the original creator of the artwork. So, NFT is a certificate of authenticity that holds the ownership information of an artwork.
It provides an opportunity for digital creators to showcase their work in the public domain without the fear of plagiarized. That means digital creators can auction their work while retaining their information and current value. Moreover, a small amount of share will be sent to the original creator as many times the digital art is sold.
What Are NFTs?
NFT stands for Non-fungible Tokens and as the name itself suggests that something can interchanged mutually. It can be artwork, music, video, image, etc. and the value of the exchanged item won’t go down as it’s fungible. Also, the fungible tokens must hold the same value and attributes for an exchange. On the other hand, a token is a 40-digit string of words that contains the information of the original creator, the current owner, and the current value.
The world’s first NFT “Quantum” sold in the year 2014 by Kevin McKoy through a blockchain called Namecoin. NFTs are sold in different categories like photography, music, sports, art, virtual worlds, trading cards, utility, and so on. Even you can create an NFT in any category and sell it for a huge sum.
Some Of The Best Real-life Examples
Recently, a popular British auction house, Christie’s auctioned digital art in NFT. It sold for a staggering amount of $69 million, where the buyer got a 391MB JPEG image and an NFT. The digital art was created by Mike Winkelmann and is defined as “Every Day – The First 5000 Days” The former CEO of Twitter, Jack Dorsey auctioned his first tweet which presently holds a value of $2.5 million.
A famous rock band, Kings of Leon, claimed that their upcoming music album will sold in NFT. Shockingly, the Nyan Cat GIF holds a value of $587,000.
How To Purchase An NFT Token?
NFTs are available for purchase in NFT marketplaces like OpenSea, Enjin, and so on. But, you need to have an Ethereum wallet to buy non-fungible tokens. So, it recommended to follow the steps listed below to purchase NFTs.
1 – Create an Ethereum wallet that generates an Ethereum account.
2 – Buy some Ethereum from reputed crypto investing websites.
3 – Link your Ethereum wallet to an NFT marketplace like Zora, OpenSea, Rarible, Enjin, etc.
4 – Now, tap on ‘Create’ and add your art form.
5 – Choose your preferred format like MP4, JPEG, GIF, etc., and upload the file.
6 – After uploading the file, name it and give details about your art form for better reach in the marketplace.
7 – And finally, create your NFT, and let it do its magic.
The Verdict
The demand for NFTs is getting higher and it will sky-rocketed in the coming years. It’s a great innovation in blockchain technology that offers authenticity for original creators. It looks like NFTs are likely to create a huge impact in the music industry and other creative spaces. The growing popularity of NFTs is a sign that everything is going to be digital in the future including buying, selling, and investing.
