This year, one acronym has joined the list of viral concepts on the internet and it’s none other than NFTs. What are they even?
A lot of people seem to have an opinion on the matter. While some believe that it’s nothing but schemes to have you pay money for nothing in particular. Others believe that it’s a legitimate innovation that’s bound to revolutionize the concept of digital ownership forever.
If you’re looking to get into the NFT craze, there are several ways you can go about it. But the real question still remains, what are NFTs? Why should you buy them and where can you find them?
Here’s all you need to know about NFTs and why purchasing them can become a good investment in the future.
NFTs (Non-Fungible Tokens) can be described as digital art or collectibles that exist on a blockchain. NFTs have a similar basis to cryptocurrency but they’re also different because they’re essentially unique. NFTs are usually minted and once that happens, all content remains fixed and all activities will be inputted into a digital ledger.
The digital ledger contains the whole ownership history of the NFT and since every token can only have a single owner at any particular time, you’ll be able to track down both previous owners and the creators of the token. This is one of the things that lend a unique value that cannot be duplicated to an NFT.
Non-fungible tokens are sold at special NFT marketplaces. They’re digital representations of things people usually collect such as rare coins, Pokemon cards, and even limited edition sneakers.
A token is like any type of collectible in the sense that its value can change because of its history, who is holding it and how rare it’s become. Therefore, each token has an individual value and can be sold and bought much like rare comic cards.
You can buy or create several types of NFTs online. Many of these tokens are preferred because of their value as collectible, significance to internet culture and personal sentiments. Some of them include:
- Video game characters
- Video game items
- Trading cards or collectibles
- Virtual fashion
As time passes, the NFT market keeps growing and more types of NFTs keep popping up with more use cases. For example, some companies are now incorporating NFT as a means to authenticate the physical products they make.
Just like crypto, the use of NFTs depends solely on the kind of value people associate with them. The value goes up according to the level of appreciation people associate with the product.
If you’re an artist or someone who has digital collectibles to sell, you can mint NFTs and get it across directly to consumers. You can also program the NFTs you sell in such a way that you get paid royalties every time the token is resold to a new owner.