NFT - What, Why & More

Hopefully the following article will give you a detailed comprehension, what NFTs are? Shall you buy/sell/create NFT Art or not? And more of such.

If you haven't been living under a rock for the last couple of years, then you've probably heard about NFTs. Why is there such a commotion around them, and what exactly are they? An NFT is a Blockchain crypto token (Non-Fungible Token). 'Non-fungible' more or less means that something is unique and cannot be replaced with something else. For example, an Ethereum is fungible — trade one for another Ethereum, and you’ll have exactly the same thing. A one-of-a-kind trading?NFL/Yu-Gi-Oh/Pokémon?card, however, is non-fungible. If you traded it for a different?NFL/Yu-Gi-Oh/Pokémon?card, you’d have something completely different.?So, an NFT refers to a unit of currency on the blockchain.

You can design and create your own NFT art digitally. NFTs transform digital art work and other collectibles by minting your own token into one-of-a-kind, these arts are verifiable assets that are easy to trade on the blockchain, as there are several of NFT exchanges are available to share your digital art works for buyers to bid on or simply buy it. Here are few platform you can work with to create your digital art and sell, the main platforms are OpenSea and Rarible. Currently Rarible is dominating total sales figures, whereas OpenSea provides more related services, such as explore and create with them by creating your own NFT Art store powered by the OpenSea exchange. You can also upload your digital art and create collections; it is fine if you are not much aware of what blockchain is.

A buyer can buy the NFT art to keep it and later might even sell it in future. This is an open market for Art Creators, NFT enthusiasts, traders and more. It is OK if you are not cryptocurrency savvy. NFT is currently a gold rush or can also be understood as Wild West. How can you start your journey in the NFT Era? There are gateways which permit you to?Create,?Mint?and?Trade?your art, etc., it seems you are now in a wait state at several of these gateway exchanges. You can sell your art as it is on your fixed Ethereum price, or you go for an auction also. You can be a musician, or a painter (artist), NFT is not for people who are just trying to make easy money. You need to have an art portfolio. The quality of artwork counts. NFT is not to get rich fast.

For the ease of understanding you can check, what CryptoKitties are, as these are a blockchain game on Ethereum. This game was developed by Canadian studio Dapper Labs that and permits gamers to purchase, collect, breed and sell virtual cats. This technically is a digital art. According to Investopedia:?Individual?cryptokitties?have sold for more than $300,000 a piece, some say. As of this writing, the average sale price for a?cryptokitty?was $65.76. By the year?2019, CryptoKitties processed over 2 million on-chain transactions, more than any other consumer dapp, and on-par with the most-used smart contracts on Ethereum.?NFT markets have started catching up in the year 2020, and it is getting pervasive now in the digital art domain as we are closing 2022.

NFT markets allow sellers and buyers to conduct a barter of similar asset value. If you have 10 dollar bills in denomination of $1 in your possession, this means if you go to a bank and ask bank teller to take these 10 bills from you and give you back one $10 bill, you still have the same value of your monitory possession. diverse set of NFT(s) that you have are easily substituted with similar. If you have famous art "The Last Supper" and you share with your friend a digitally printed poster of this, this print-out does not hold the same value of the original art. The NFT you create has a digitally minted signature of yours, which has the value for the buyer as this is a piece of art that is unique and has creator's secured signature in the blockchain ledger. NFT blockchain preserves the digital authenticity at the time the miners mine your NFT.

NFTs are cryptocurrencies in a unique way. The NFT Ledger maintains, who created the NFT Art, where they hosted it for sale or auction, when that was sold and who is the new owner, etc.?

Note: This article is an excerpt from a research I have been contemplating with for over couple of years.