- NFT, is a unit of data stored in a digital ledger called a blockchain.
- NFTs are unique and can come with copyright too.
- To know further details about NFT, please read the complete article.
After Cryptocurrencies, one name that is on all market enthusiasts’ lips is NFT or Non-Fungible Tokens. The digital space is buzzing with marvellous stories of people minting money through NFTs. That is what caught my attention and pushed me ahead to explore the world of NFTs. I was curious to know - What are NFTs? How to mint an NFT? Why are NFTs valuable?
For a generation like mine that grown up in the digital world, NFTs are exciting. To further explore as to why many entrepreneurs have fuelled in millions of dollars in NFT transactions and what is so attractive in the NFT world, let us deep dive NFTs in this piece.
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What are NFTs?
Non fungible tokens or NFTs are a form of crypto which hold digital information in the form of collectable art, music or video. They are unique, one-of-a-kind items whose value is determined by the market demand.
To explain this in an example – let us compare it with one dollar. If Daniel and Kiara both have one dollar, we can easily use it for transactions and even swap it. In this process of swapping, the value remains the same. But if both have a non-fungible token, for example Daniel uses his exclusive club card and Kiara her birth certificate, we cannot swap it. Even if we do, it will not be exchanged equally. That is what brings in the unique factor and makes our tokens non-fungible.
The latest that created a buzz was CryptoPunks. CryptoPunks are NFT collectables available on the Ethereum’s platform. They are unique pixilated images of “punks”. Then there are NFT games like Axie Infinity where players collect little digital creatures called Axies.
Related Article: What are Non Fungible Tokens or NFTs?
What gives NFTs value?
To understand all the buzz around the NFTs, one thing to surely understand is how do these derive their value. NFTs are unique and different from other tokens.
NFTs are unique, one cannot make another NFT with a same token number. Now these can come with a copyright too. Some platforms give the option to the owner to completely copyright the token on blockchain. NFTs are rare collectibles, many NFT enthusiasts are buying them to resell and earn a living from the appreciation. And the most important feature is that NFTs are immutable. No one can alter your NFT or take it down from the blockchain. So, an NFT owner is the only one who has the right to do whatever he/she wants to do with the NFT.
How to get started with Buying/Selling NFTs?
The first step to get started with NFTs is to choose the platform. The NFTs are purchased through an NFT exchange. Some of the NFT exchanges include OpenSea, Rarible, SuperRare, Foundation, Mintable app and AtomicMarket, among others.
Now some of these platforms let you create your own NFTs while some of them are closed platforms. In closed platforms like SuperRare, only approved artists can create NFTs.
How to mint money with NFTs?
Once you have chosen your NFT platform, you can move on to the next step to actually mint. Recent stories of artists and entrepreneurs minting tons of dollars through NFTs has definitely caught everyone’s attention. And even corporates have entered the space with a big bang!
Visa (NYSE: V) announced its first foray into non-fungible tokens (NFT) by purchasing an NFT asset called CryptoPunk 7610.
One of the most recent developments in the crypto space is Axie Infinity, which combines cryptocurrency with gaming.
Related Article - Gaming with Crypto: Axie Infinity explained
Now, many have suddenly become multimillionaires, through NFTs. And the NFT mania has taken the young generation by storm. Artist and now NFT millionaire Beeple, a 12-year-old coder Benyamin Ahmed, and many such NFT enthusiasts have taken over the NFT world. And this craze does not seem to be cooling off soon. To some this seems to be a bubble, while others are busy minting money by jumping in the bandwagon. Since the NFT world is so vast and unique, there are innumerable options for different kinds of content creator to try their hand in it. And I must say, if you are someone who is looking at earning cryptos but do not want to invest directly into it, NFTs are for you.