This is a term that you’ve most likely come across while surfing the web in the last year. The deluge of information that has surfaced since the birth of NFTs has left most of us perplexed, wondering how people are making millions selling digital art.
This page is intended to give artists a better understanding of what NFTs are, how they function, and whether or not they should be concerned about them. So, let’s start from the beginning.
What is a non-financial transaction (NFT)?
Non-fungible token (NFT) is an abbreviation that stands for a unique digital asset that cannot be modified or replaced with anything else on the blockchain. What does this imply?
Unlike Bitcoin, which is a fungible cryptocurrency that may be traded like any other currency or money for a predetermined value. An NFT is a one-of-a-kind token that cannot be exchanged for other tokens, making it more akin to a work of art. Those one-of-a-kind NFTs don’t have a standardised value. Non-fungible tokens, on the other hand (again, like art), are based on current market value.
The difference between fungible tokens, such as Bitcoin or Ethereum, and non-fungible tokens, such as NFTs, can be summarised as follows:
NFTs = goods, and cryptocurrencies = currency (or money).
Cryptocurrencies can be traded like stocks for a predetermined stock price, or they can be used to purchase goods for a set price. NFTs, on the other hand, are “digital goods” that you may buy with different cryptocurrencies at different rates.
How Do You Purchase an NFT?
Before you buy your first NFT, you’ll almost certainly need to buy some Ethereum. The cryptocurrency was one of the first to develop a blockchain that supports non-fungible tokens (NFTs), which means its blockchain can store additional data related to the one-of-a-kind non-fungible token. While the Ethereum blockchain has proven to be the most popular platform for non-fungible tokens, other blockchains are following suit. No, you are not required to utilise the Ethereum blockchain, however it is the largest blockchain for NFTs at the moment.
So you’ve got some bitcoin that you can use to buy NFTs. Now what?
You can now begin investing. NFTs are purchased and sold on a digital marketplace, similar to how IRL goods are purchased and sold on Amazon. These marketplaces allow you to purchase a digital good at a price established by the maker or as a live digital auction similar to eBay. The price of NFTs sold at auction is determined by demand–the stronger the demand, the higher the price.
What Stores Sell NFTs?
An NFT can be purchased on a number of different marketplaces. OpenSea, Rarible, SuperRare, and Foundation are now some of the most popular markets. These marketplaces host a wide range of NFTs, from digital art and music to video game in-game material and memes. You can also go for more specialist marketplaces, such as the NBA’s Top Shot marketplace, which specialises in selling specific types of digital goods.
Why Should You Be Concerned About NFTs?
To begin with, perhaps you shouldn’t. Alternative markets, like buying fine art as an investment, are always more volatile than mainstream markets. As a result, you should be aware of the quickly shifting market dynamics before investing or selling your own work as an NFT.
NFTs, on the other hand, offer a new way to make money if you perceive value in a digital-first environment or if you currently create digital art. While the future of non-fungible tokens is still uncertain, it is apparent that they have created value for producers that has never been reached. You can go here if you’re finding for an NFT creator in Malaysia.