Everything You Need to Know About NFTs
What are NFTs ?
Let’s begin by understanding what exactly are NFTs, (Non-Fungible Tokens) which means that they are all one of a kind and they are stored in the BlockChain , they could be anything from art to music to literally anything and everything. Lets deep dive into everything you need to know about
(Note that NFTs are different from cryptocurrencies on the BlockChain.)
They give the complete verification of ownership for any digital asset by storing it onto the blockchain.
How Do they Work?
At a higher level, most of them are on the Ethereum blockchain. Ethereum is a cryptocurrency like Bitcoin and NFTs are popularly traded on the Ethereum Network specifically through Opensea.
NFTs can literally be anything digital, such as drawings, music, art , collection of any sort etc.
Why are People Buying NFTs?
Collection of art has evolved into collecting only Digital art as it is safer (as it is on the blockchain) , more profitable and more hyped. This is the long and short of everything you need to know about NFTs condensed.
People have used this hype to create their own NFTs for example 50-second video by Grimes or the person who paid 6.6 million for a video by Beeple.
This has brought into and given a chance to all the artists to create and sell their art through the blockchain and create a digital community.
I can just save the Image and own it,right?
No, this is not how it works. You can’t just screenshot or save the image and “own” it; that’s not how it exactly works.
Because NFTs are designed to provide you with something that can’t be copied , ownership of the work
within the Blockchain, simply means that for example anyone can make copies of the Mona Lisa but there’s only one original piece similarly “copying” the image doesn’t actually make you the owner of it .
Are there Actual Communities For NFTs?
Yes, there are people who have built communities based on the thing they own, and now it’s also happening with NFTs, there are tons of communities but the popular ones include the animal themed projects like “BAYC” Bored Ape Yacht Club and also other projects such as , CryptoPunks, and VeeFriends.
The communal activities depend on the community like “BAYC ” owners involve vibing with each other in Discord Which reward their holders with access to exclusive party’s, meetings with billionaires ,stakes, tokens, merch and a lot more.
What’s The Point of NFTs ?
That honestly depends on whether you are a buyer or an artist.
Let’s say For an Artist :
This is the best way for artists to sell their art because it gives them a way to sell their work of which otherwise a market would’ve not been present in the real world
Also NFTs have a feature that you can enable that will pay
you a percentage every time the NFT is sold or given to a different buyer.And if your work blows up you’ll see a lot of benefit and profit coming your way.
For a Buyer :
The benefits of buying art is it lets you financially support artists you like and that is the beauty of NFTs.
Buying an NFT gives you a lot of rights ,you can make it as your profile picture and brag that you own the art , with a blockchain entry to back It up.
In case of a collector :
NFTs can work like an asset ,where you buy it in hope that it’ll appreciate in value and so you can sell it for a profit.
Are NFTs mainstream ?
I think not, it depends on what you mean when you say “mainstream” not many adults are onto it and it’s widely spread within the youth which is growing quickly.
But we are seeing big brands and celebrities like Marvel, Neymar, and many more launching and buying NFTs
But the projects were aimed at the traditional collectors rather than crypto enthusiasts, while they are still not “mainstream” I can say this without a doubt that they’ll take over at some point in the coming future. We will continue to touch on this space to further your understanding of everything you need to know about NFTs.
By Guest author RXJ