Non-Fungible Tokens (NFTs) Explained

Lately, we have seen an overwhelming explosion of blockchain news articles which have left most of us utterly confused as to what exactly is going on. Is this what development and digitization look like? Pretty much, yes.

And did it start with the Nyan Cat? Yes, again.

It all started with a meme and years later, the creator thought it would somehow be a good idea to put up the cute cat for auction? Excuse me, sir? I want to know your thought process.

Anyways, Nyan Cat was sold for around $600,000. A MEME cat was sold for $600,000, what are we all doing with our lives? We move.

You must be wondering how one token is such a big thing? Well, for starters, you can own more than one non-fungible token.

What are NFTs?

Non-Fungible Tokens, or NFTs as everyone likes to call them, are assets that you can own digitally. Yep, digital product ownership. They are cryptographic assets available on a blockchain and each with distinctive codes and specifications so they can be differentiated from one another.

Still don’t get it? Let me spell it out in layman’s terms, these are assets or products that you can gain ownership of by paying for them using digital tokens. Cryptocurrency, guys. Once you pay, you will attain ownership and can sell further at a higher price.

Sounds interesting, no?

What is Blockchain?

Blockchain is a platform to store digital information about various products. Basically, an electronically recorded database, shared among a network of computers. Their best use is in cryptocurrencies, like Bitcoin, for the purpose of maintaining encrypted and secured transactions.

What’s the difference?

The main difference between ordinary data storage and blockchain is that blockchain stores data in blocks, each of which has a specific capacity, and whenever that capacity is full, the block is linked to the previous block making it an interconnected system.

Know a little more:

Just like physical money, you can use and trade digital currency. Fungible tokens are like trading a coin for coin, you get the same thing in return but that’s not the case in Non-Fungible Tokens, meaning, you will have an entirely different item in exchange for the one that you have traded. Each token is unique, and cannot be swapped.

A special kind of trading.

NFT Tradings in Games:

NFTs can be anything from a piece of art to real-life investments. In terms of games, there’s a whole new metaverse of digital art where you can create, buy, or sell your item. Like selling in-game characters, a limited-edition event, skins, avatars, collectible cards, etc.

You can buy these and they can be resold to the highest bidder. But here’s an interesting thing, if the person you sold it to decides to sell it further, you will get a cut out of his earnings. Meaning, a specific percentage will come in your share.

Cool, right?

Why are NFTs the new cool?

Well, as if it’s not apparent enough, people have started taking it as a form of art collection. Also, whether they are right for you or not, this question depends on whether you’re a buyer, a seller, or a collector (everybody’s an art collector)

If you’re a creator (seller), way to go! You deserve digital currency for all that effort you’ve put into your work. If you’re a buyer, great choice! Because you’re doing a good thing by buying other people’s creations. And if you’re a collector, let me tell you, your want for more will never be satisfied. *evil laugh*

Where can you buy/sell NFTs?

There are a number of marketplaces that allow the trading of NFTs like OpenSeA, Nifty’s Gateway, Rarible, and Grime’s choice, etc.

Ethereum NFTs:

NFTs became possible only because of the Ethereum blockchain support who declared them as a new standard. And, guess what? The first NFT use was a game; CryptoKitties in which you could sell and buy virtual cats on the internet.

Thank you, technology.

And this concludes today’s blog post, sigh. I hope this proves to be useful and gives you a little insight into how this internet buying works. NFTs are not yet mainstream, well not as mainstream as Hot Wheels, but you get my point. They’re definitely piquing the new generation’s interest and we are witnessing a huge digital shift in this everchanging and growing world of technology. So, that counts for something.

Ready to sell or buy your NFT?