NFTs: Non-Fungible tokens
What are NFT’s?
NFT stands for a non-fungible token, representing real-world objects such as videos, art, and music. it’s a unit of data stored on a blockchain (digital ledger) identified as a digital asset. It also falls under the same category of cryptocurrencies like Bitcoin or Ethereum.
But unlike other digital currencies, NFTs are “non-fungible” and cannot be exchanged instead, they are stored as a form of digital art or music file that is very valuable to many. They hold a digital signature that makes it impossible to be equal to one another like other kinds of Cryptos.
NFTs could be digital creations flowing around like in a video game or a picture on Instagram perhaps even a tweet but you just don’t know it!
What makes NFT’s interesting?
NFT’s have gained more popularity once they were diversified into different categories to be used as tokens such as art, music, sports and other kinds of entertainment. For example (BAR) a token listed in markets as the FC Barcelona Fan token. In a mind-blowing example, Jack Dorsey co-founder of Twitter auctioned of his tweet to be sold as NFT and it actually reached a bid of $2.5 million. As a matter of fact, tweets are the latest monetization of NFTs.
In another exceptional mind-altering example, is the famous Beeple who’s a famous digital artist that created “the first 5000 days” drawings that got sold for 69.3 million dollars….
NFTs store extra information allowing the “tokens” to take the form of art and entertainment like music or videos. Other varieties of NFTs can also be stored as MP3s, JPGs, and GIFs.
And to answer your question of why? Investors believe that it’s a financial investment with great value and rather a lot of sentimental value.
Where to buy them?
NFTs can be bought on a variety of platforms depending on the digital asset you are interested in. Crypto apps have been listing more and more digital tokens. For instance, Digitaltradingcards.com is a website containing different card collectibles whether it’s art, music and fantasy.
All that is required is a specific wallet to be filled with cryptos. There are also several tokens listed on different kinds of Cryptocurrency platforms.
NFT moving images sell for thousands of dollars and NFT art can go all the way up to millions and people actually don’t get any physical object in return just a unique digital token or as some may refer to it as a virtual asset. NFTs have gained extreme popularity taking the attention of major video game giants like Sega, who are starting to create their own NFTs inside video games.
NFTs are available for everyone to sell or create. A process called minting. Although one of the setbacks is that these tokens use a lot of energy-absorbing a lot of carbon footprint. Receiving backlash for its energy consumption.
In conclusion; NFTs are the new trend but not just in financial markets falling under risky crypto’s. In fact, NFTs changed the game with their wider array of categories, whether it’s art. Videos and entertainment. From football fanbases to international companies interested in creating their own digital token. Mind-blowing right?