NFTs - beginner’s  Guide

NFTs - beginner’s Guide

What are NFTs?

NFT stands for “Non-Fungible Token”, which means that it cannot be replaced (One of a kind). Basically, NFTs are digital assets that contain information recorded in a smart contract.

NFTs are digital assets that represent things like art, Virtual Avatars, GIF, Videos, trading cards, and even memes nowadays.


Why Can’t one take SS (Screenshot) or download the NFT, if it is digital??

An individual can take a SS of an NFT as an individual can take a picture of the painting in the art gallery but that would not make that individual an owner of that painting, similarly taking a SS won’t make an individual an owner of that NFT.?

Each NFT has a unique signature that verifies the authenticity and can describe any transaction related to it, For Example

  1. Who created it?
  2. Who Owns it?
  3. Who sold it?
  4. For how did it sell, etc


What makes NFTs so Special?

NFTs have a unique attribute, which are linked to a specific asset. They are used to prove ownership of multiple items like game skins, paintings, GIF, memes, real estate etc.?

They are special because of blockchain. The primary function of blockchain network is to get all the participants agree upon one “state of world”. In other words, everybody in the world agrees upon one set of state. After everybody agrees on that state, that data is recorded in the blockchain.

Using blockchain as a shared storage data medium, NFTs can be trusted which ensures survival of all the data and adds value to the NFT.?

How are NFTs Used?

NFTs are used in multiples ways, they can be used as a digital asset which can be valued according to the market value. NFTs represent virtual land parcel, art, game skin, ownership licenses, music etc.

They can be bought and sold on NFT Marketplaces.


NFT Marketplaces??

An NFT Marketplace is a place where you can buy and sell NFTs. These platforms allow people to store and display their NFTs and allow them to sell NFTs for cryptocurrency or money. Some platforms also allow its users to mint NFTs from their platform.

They Charge a certain Fee for doing such transaction on their platform

These are some of the NFT Marketplaces:

  • OpenSea
  • Rarible?
  • NBA Top Shot?
  • Binance
  • Nifty Gateway?
  • SuperRare


How does an NFT work?

There are multiple blockchains like bitcoin, Ethereum from which you can create a non-fungible token standard and using those token standards you can create an NFT. NFT can also be created on other smart contract enabled blockchain with NFT tools and support.?

NFT and their smart contracts allow for detail attribute to be added, for example?

  • Identity of owner?
  • Metadata?
  • Secure file links etc.

Different NFTs in Market?

There are multiple NFTs in the market today which belong to multiple sectors but we will list down some of the most recognisable NFTs up till date

  • The Merge?
  • Clock
  • Human One?
  • Crypto Punk#5822
  • Alien Crypto punk#7523
  • TPunk#3442
  • CryptoPunk #4156
  • CryptoPunk#5577

How Can one Buy an NFT?

Step 1: Login to a NFT Marketplace website?

Step 2: Create a digital wallet?

Step 3: Search for the NFT you are looking for and select

Step 4: Click on buy button and a confirmation for the transaction will pop-up?

Step 5: confirm the transaction and your NFT will display in your digital wallet.

There are many ways to buy a cryptocurrency, you can either buy a NFT with cryptocurrency, Credit/debit card, wallet balance or with any currency. You can also transfer a NFT to a known individual as well for a mutually decided amount?

How can one make an NFT??

Creating an NFT is a complex process but a overview of the system is mentioned below:

  • Choose a unique digital asset?
  • Decide what blockchain technology you want to use?
  • Set up a digital wallet?
  • Select a NFT Marketplace?
  • Upload your NFT to the marketplace?

“NFTs are an important aspect of the economic and has a community-building potential”

?Reference Links:

?

https://sensoriumxr.com/articles/most-expensive-nft-sales

https://about.fb.com/news/2022/06/what-are-nfts-beginners-guide-by-meta/

https://decrypt.co/resources/non-fungible-tokens-nfts-explained-guide-learn-blockchain

https://nftschool.dev/concepts/non-fungible-tokens/#a-bit-of-history

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