Do you know what NFT is? and how is it different from cryptocurrency? This article will provide you with a wealth of knowledge about NFTs.
Everybody knows that the cryptocurrency movement is very strong. But another thing that has emerged in this is NFT and it is becoming very popular day by day.
Before continuing to read this article, you may want to clarify your concepts about- Why learn Blockchain and Cryptocurrency?
What is NFT?
The term ‘non-fungible token’ (NFT) refers to a token that is not fungible. Non-fungible means that something is distinct and cannot be replaced. On the other hand, real money and cryptocurrencies are fungible, which means they can be sold or exchanged for one another. Every NFT has a different digital identity. NFTs are digital assets that can be pictures, videos, audio recordings, or any other digital media. NFT examples include artwork, comic novels, sports memorabilia, trading cards, games, and more.
How Does NFT Work?
Non-fungible tokens, also known as NTFs, are digital assets that are stored on a blockchain, which is a distributed public database used to record transactions. Each NFT is distinguished from the others by having unique identifying numbers. This information makes it simple to move tokens between users and confirm ownership.
The market determines the worth of NFTs. NFTs are digital representations of commodities and can also reflect things that exist in the actual world, like paintings and real estate. Some users believe that by tokenizing tangible real-world assets in this manner, the purchasing, selling, and exchanging of those assets will be more efficient, and there may even be less chance of fraud.
Are NFTs Safe?
Blockchain-based NFTs, such as cryptocurrencies, are usually safe. The distributed structure of NFTs makes them virtually unhackable. The only security concern is that, in the unlikely scenario that the hosting site fails, you might not be able to access your NFTs.
Why Are NFTs Becoming Popular?
NFTs are a development in the history of cryptocurrencies. The majority are an improvement over the typical tradable crypto and are based on smart contracts via the Ethereum network. Each NFT (non-fungible token) has a totally distinct code that enables tracking.
While these codes could be valuable collectibles in and of themselves, NFTs gain additional value when combined with digitally created works of art, animated GIFs, music, trading cards, game components, or events that are purchased and sold on the NFT market.
That’s why NFTs are gaining popularity and can become a good investment for the times to come.
Pros and Cons of NFTs
- A new method of making money from digital art.
- NFT provides a record of authenticity and ownership.
- NFTs are Accessible. Anyone from anywhere in the world can benefit from it.
- Uses a lot of energy and harms the environment.
- A lot of stolen artwork, scams, and fraudsters.
- It takes high transaction fees.
Top Most Expensive NFTs Sold
Merge – On December 2, 2021, The Merge was formerly sold for $91.8 million by nearly 30,000 owners, making it the most costly NFT ever.
On this top 10 ranking, this is the only NFT with numerous owners.
The First 5000 Days – Beeple is well-known for his artwork. The artwork is basically a collage of 5000 of his works. He vowed to make one piece of art every day beginning in 2007, and this is the outcome. Needless to say, the work was worthwhile.
Human One – Beeple has sold some of the most costly NFTs ever. HUMAN ONE was sold on November 9, 2021, for just under $30 million.
Crypto Punk – Cryptopunk #5822 is part of an NFT collectible series called Cryptopunks, created by Larva Labs. There are many other series of his famous CryptoPunks like CryptoPunk #7523, CryptoPunk #4156, CryptoPunk #3100, etc.
Investing in NFTs can be a lucrative venture, NFTs have shown much progress in the past years, which has awakened new energy among people. According to sources, NFTs will touch even greater heights in the coming times.
NFTs are a valuable addition to any financial strategy because they let you own unique digital assets that are impossible to duplicate.