NFT stands for “Non-Exchangeable Token”, it is a digital asset that represents real-world objects such as art, music, in-game items, and videos. They are often traded in cryptocurrency and encoded in the same underlying blockchain network as most cryptos.
Each NFT has built-in authentication that serves the person for whom it was purchased, and this ownership makes the NFT unique.
NFT was first created in 2013 and started gaining social media attention in late 2017 thanks to the development of platforms called CryptoPunks and CryptoKitties .
The first Twitter share, which was made NFT and offered for sale by former Twitter CEO Jack Dorsey, contributed to the growth of the NFT world.
How does NFT work?
Because NFTs are highly secure, they are held by the Ethereum blockchain and cannot be separated from the blockchain. Therefore, no one can change the ownership record or attempt to replicate the existing NFT.
Digital artworks have long been the subject of debate, as information on the Internet can be copied . But NFTs help artists protect their copyright by securing ownership of each digital production.
More and more artists entered the world of NFT every day. Although there are many types of NFTs on the market , these categories are most in demand on sales platforms:
- Event tickets
- music and media
- virtual items
- The game
- real world assets
- Domain (domain name) names
How is NFT created and sold?
The process of making an NFT is surprisingly simple. Even if they are not crypto industry experts, people can get their digital art up for sale in just a few steps.
To start building the NFT, you must first connect the crypto wallet to the NFT market where you want to list the art. To upload digital art once set, go directly to the “NFT creation section” in the marketplace. In this section, the marketplace algorithm will automatically process the works and bring them ready for sale.
To sell NFT , it must be ensured that the crypto wallet is linked to the chosen market. But it is worth noting that almost all platforms will take a certain amount of gas fee (commission) to accept the offer and transfer the asset . Therefore, the price determined must at least cover these costs, otherwise money may even be lost.
How to buy NFT?
Buying NFT is also relatively easy. After creating an account and making a deposit, numerous collections can be browsed to find the right digital artifact.
Most NFT marketplaces such as OpenSea, objkt.com, Rarible operate in auction format, meaning it is necessary to submit a bid for the NFT requested to be purchased.
Most Expensive NFTs
The most expensive NFTs ever sold and the 8 most lucrative digital arts of the internet world were as follows:
- Everydays: the First 5000 Days: $69.3 million
- CryptoPunk #7523: $11.8M
- CryptoPunk #7804: $7.6 million
- CryptoPunk #3100: $7.51 million
- Crossroad: $6.66 million
- Ocean Front: $6 million
- CryptoPunk #5217: $5.44 million
- World Wide Web source code: $5.43 million
Is there copyright in the NFT market?
As NFTs are tokens with verifiable data and transaction logs, every user has the right to read the history of any digital asset they want. Additionally, the unique nature of the blockchain provides extra security to all NFTs, making it virtually impossible to modify or copy artworks.
NFT scam game?
Users are always arguing about the true value of NFTs. Some believe it is a new investment for the internet, while others claim it is a bubble waiting to burst.
However , the 29 August 2021 transaction volume of OpenSea, the world’s largest NFT market , showed how much the NFT world has grown. Over $322 million was traded in just one day, while on September 8, 2021, the daily trading volume dropped to around $84 million.