Isn’t it jaw-dropping that ‘Elon Musk turned down $1 million for this tweet’?. At first, the huge figure of $1 million must have caught the attention of millions but then it must have become the subject of curiosity as to how a tweet can be put to sale like any other commodity.
So, for those who’ve come here to get a concrete explanation on this, we’re dedicating a whole post to clear the air on NFT’s.
Yes! NFT’s - which covers all such digital assets that today, are bought and sold in the market like any other article.
The fascinating point about NFT’s is its form in which they exist along with the technology on which it runs.
Wondering how to buy (Non-Fungible Token) NFT’s?
We’d be reaching there soon but before that, let's begin with the very basics.
NFT, as the name suggests, are the Non Fungible Tokens. NFT’s can be any form of digital asset that a person can own. From videos, Gifs to music and art forms, it includes possibly everything that can hold its existence in the digital form.
So here’s how the idea of buying or selling a ‘Tweet’ emerged!
A person investing in an NFT is given the exclusive rights of ownership against the price he paid for that digital property. Since the form is unique in its way, it becomes impossible to trade it or exchange it for any other item.
So is it just about dealing in digital assets?
Wait! There’s more to it!
The technology on which these NFT’s are based is known as Blockchain technology!
Wait! Isn't it the same blockchain technology that has been prevailing in cryptocurrencies?
That’s correct! NFT’s are maintained on the distributed public ledger like any other cryptocurrency. But the difference lies in it being Non-fungible, unlike the cryptocurrencies that can easily be exchanged against the other units.
NFT’s, usually run on the Ethereum Blockchain, keeping a record of every such transaction which is usually one of its kind. Though other cryptocurrencies support the line of NFT’s, mostly Ethereum keeps a track of them all.
Among the most famous instances of NFT are the 5000 image artwork of Beeple that he cracked for $69 million.
Is it worth buying these tokens? What is the intent behind this idea anyway?
Well, whether to buy it or not is a matter of preference. There’s no concrete logic behind the invention of this concept since the whole idea was to promote creativity, rather rewarding the creation of artists which is beyond every price and logic!
Unlike cryptocurrencies, there is no hard and fast science and parameters behind these tokens that can help you analyse the future of these tokens.
Wondering if there exists an exclusive marketplace for these specialized tokens?
Well, if it has evolved so far, how can there not be a dedicated place for you to buy these unique tokens!
Several platforms are there that facilitate the trade of these unique tokens! You must visit the portals if you wish to buy NFT’s or just wanna scroll through their collection!
These are independent platforms where you can visit and see through the collections that they keep for trading. All you require is a digital wallet plus a cryptocurrency with which you could execute the trade.
You need to create an account on any of these websites and you are all set to deal in NFT’s.
Like we described, NFT is a novel concept that found its way in between the ‘revolutionizing blockchain’ and ‘booming digital industry’ and its future remains uncertain as the mechanics of NFT’s are far beyond any technical or economic indicator.
Rather, it’s the pure demand on which the whole concept of NFT is based. As the concept evolves and progresses, there are chances that the number of marketplaces dealing in NFT’s may also experience a rise in its number. The reason why an NFT marketplace holds much importance is because it not only facilitates its buying and selling but allows a person to create his NFT by registering himself as an artist.
So, the places from where one could buy an NFT has a direct relation with the growth and expansion of NFT’s. The more portals there are in existence, the more opportunities and freedom will there be for the budding artists to not only create new NFT’s but generating its legitimate demand and earning fair prices against them.