Hardik Katariya is the founder and CEO of The Crypto Times associated with Protocols and Tokens Pvt Ltd.
Non-fungible tokens (NFTs) have gained popularity in such a short span of time. People around the globe are still not over cryptocurrency, and now NFT has been introduced. Your curiosity is reasonable, so are your questions.
You might be wondering - NFT? What is it? Why is everybody going crazy over it all over the media? Why is it extravagantly expensive? Is it worth investing in NFTs?
NFTs' wide acceptance leaves nothing but us to understand the reason for their growing demand and scope.
The Role Of NFTs
The original idea behind NFT is to introduce a digital asset aimed to substitute real-life art with the virtual one. It could be anything from music, paintings, videos to any entity that interests people.
NFTs have been hyped among artists and content creators as a way to auction their work digitally, while the public perceived it as a means to collect fine art for "bragging rights" over them. Moreover, the sale of those NFTs has opened a new stream to generate revenue.
NFTs are not merely limited to acting as collectibles for people who always have something to gush over, but also a medium to invest seeking profitable returns.
Non-fungible tokens are crypto-assets whose uniqueness, ownership, and versatility create a one-of-a-kind digital version of work or entity using blockchain.
Unlike other crypto-assets, it is unique and is not interchangeable with another NFT. Whereas, cryptos like bitcoin and Ethereum when exchanged possess the same value, which makes them fungible assets.
Now that you have understood the meaning of NFT, we must deep dive into what made them popular.
NFTs have channeled businesses for global creators by facilitating new revenue sources to reach their customers, fans, and audiences. NFTs are ever-evolving by expanding their scope in every field from sports and music to memes and sculptures, fetching their creators millions.
The craze hasn’t even spared the influential personalities, and whenever their names popped up, they have always made it to the breaking NFT news.
Recently, Twitter CEO Jack Dorsey's first tweet NFT sold at a whopping $2.9mn. Also, renowned rapper Snoop Dogg last month revealed himself as the NFT collector Cozomo de’ Medici.
Furthermore, various domains including entertainment, fashion, insurance, finance, gaming, healthcare, Esports, and real estate have discovered several cases of NFTs.
Technology Behind NFTs
When an NFT is sold, the transaction is verified using distributed ledger technology (DLT) that retains a digital record of all the specific tokens purchased. This process as whole works on Blockchain Technology - to make these purchases secure and traceable. It also prevents NFTs from being edited or deleted and makes them accessible publicly.
When NFTs are released, they may consist of a single NFT or may have hundreds and thousands of tokens, whose sales are recorded on the blockchain which generates an authentic certificate of ownership for the new possessor.
It has been established that NFTs follow secure transactions, But what makes them an attractive choice among celebrities and influential personalities from various fields?
To answer that, we need to explore its scope.
Scope Of NFT
NFT has opened doors for monetization in a creative sector, and commercialization of other sectors as well. The digital artwork has earned millions, or tens of millions would not be an understatement to say. In the third quarter of 2021, NFTs’ sales surged to $10.7 bn, eightfold to that of the previous quarter.
We can now conclude that the NFTs market does not seem to stop growing anytime soon as it is predicted to be the future artworks platform. But the thing that makes it stand out among numerous digital presences is its versatility.
NFT could soon potentially become the go-to in terms of buying and selling artworks, songs, or videos, incentivizing creators around the world.
With its sales and transactions exploding with full-scale intensity, It would be interesting to see the NFT market at its peak.
How to get started with NFTs
As we have discussed above, to release the artwork as an NFT, the first step is to create the art which could be anything such as text, video, picture, meme, music, painting, or anything that’s authentic and provable.
After deciding on the creative front, you need to have access to Ether as the NFTs are blockchain-backed. Well, NFTs are created on various blockchains but Ethereum is the most used and popular in the NFT space. Hence, you must have some ether in your Ethereum wallet.
Setting up your wallet is just the primary step, for your NFTs to be released you need to explore the NFT marketplaces to auction or collect the NFTs.
There are two ways to sell an NFT. You can either trade the already bought NFT. And the other way is to sell the NFT you created. There are two kinds of marketplaces for each purpose:
- Primary Marketplace
- Secondary Marketplace
The primary marketplace is for the creators who mint NFTs, and the secondary marketplace is for NFT collectors who wish to resell the purchased NFTs.
Many call this ‘creative technology’, and in a true sense, it is. NFTs have bridged the gap between art and accessibility. With their ever-growing popularity, NFTs have become a profitable pursuit, as artists from around the world are now participating and getting recognition for their work. It has provided an ‘open to all platform’ to those who want to showcase their talent.
This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.
© 2021 Hardik Katariya