You must have heard about the world of NFTs and the millions of dollars that can be obtained from buying and selling NFTs.
NFTs have taken the art world, music industry, and gaming community by storm. As digital ownership gains importance, NFTs provides a unique way for creators to sell and authenticate their digital art, music, and other creations, using blockchain technology to ensure ownership and authenticity.
With the ability to create scarcity and exclusivity for digital goods, NFTs have disrupted traditional notions of ownership and proven to be a game-changer for creators seeking to monetize their digital content.
This article will delve deeper into the world of NFTs and we will explore what NFTs are.
Maybe you said to yourself, “Can I also enter this field?”, “Can I make an income this way?”, “Can I make NFTs?”, “Can I develop and update my business with NFTs?” and thousands of other questions that brought you to our series of articles about NFTs.
First of all, don’t worry! Because the answer to all your questions is here. Be sure to read our series of articles.
What is an NFT?
NFT is a digital asset representing ownership of a unique item or content on a blockchain. Unlike traditional cryptocurrencies, each NFT is distinct and cannot be replicated or exchanged for another asset on a one-to-one basis.
NFTs are used to verify ownership and provenance of digital art, collectibles, virtual real estate, and other unique digital assets. NFTs have gained popularity as a means of authenticating and monetizing digital creations, with some NFTs fetching millions of dollars at auction.
NFTs are stored on a blockchain, making them transparent, immutable, and resistant to tampering or theft.
A friendly advice
First of all, know that the world of NFT is enormous and useful for every person, and it is getting wider day by day and is growing and developing.
But those who succeed in this future-making industry, like starting any other business where they invest, first increase their understanding, awareness, and information. Second, they must have perseverance, effort, and passion for it, and third, they must have a clear picture of the future of the work they want to start.
What is NFT Stand for?
NFT stands for Non-Fungible Token.
What is a Token?
A token is any asset whose transaction is encrypted. Tokens are encrypted on the blockchain platform, but NFTs are essentially digital assets. A kind of cryptocurrency like Bitcoin and Ethereum, unlike them, NFTs are unique and cannot be exchanged.
NFT vs Crypto
To clarify, we all know that our assets are physical or fiat money. Some assets can also be digital, but digital assets, until now, included cryptocurrencies that were exchangeable and not unique. For example, if you borrow 100 dollars from your friend, your friend will bring another 100-dollar bill to repay the loan.
It means that it is not necessary to bring the same banknote that you intended. Just like cryptocurrencies and fiat money, which are part of this category, are exchangeable and not unique. But NFT digital assets are non-exchangeable and unique.
- Unlike cryptocurrency tokens, which have no difference and are exactly equal in terms of the price of each unit. NFT tokens are completely different from each other, they are never alike, they are rare and non-exchangeable (non-fungible), and they have their own characteristics.
- Another difference between NFTs and cryptocurrency tokens is that NFTs do not have the same prices. For example, each NFT of the Bored Hamster collection, which includes 10,000 numbers, is unique and special, and none of them can be used elsewhere.
Now, in another example, suppose you lend your car to your friend. Your friend should return exactly your car, not another car.
NFTs are the same. They are not interchangeable. Also, NFT tokens cannot be divided and sold, but a cryptocurrency can be divided. Therefore, NFTs are non-fungible, non-divisible, and unique. This means that no two NFTs are the same.
NFT price refers to the market value of a particular NFT (non-fungible token) at a given time. The price of an NFT is determined by various factors such as the rarity, uniqueness, and demand for that specific NFT.
The value of NFTs can fluctuate greatly, with some NFTs selling for millions of dollars while others may only fetch a few dollars. The overall NFT market has experienced both booms and crashes in prices.
Pro tip: As with any investment, it is important to carefully consider the risks and potential rewards before investing in NFTs.
Surely you also want to know why these seemingly simple digital photos and paintings are so expensive? What logic makes some NFTs so expensive?
Related Post : To clarify this issue, you need to read the following article and learn more about the state of the strange world of NFTs.
A group of people puts digital art on a website called OpenSea, and some people buy them with cryptocurrencies, and everyone who buys everything becomes his own.
It means that you may copy the photo I purchased or put it as the background of your phone, but this artwork is still mine because every artwork bought and sold has a series of codes that show who owns it.
The codes are related to digital currencies. Each transaction is registered as a specific code. Each NFT has a unique code written with each purchase and sale, and the next code is added. This way, a history of sales and purchases made on each NFT is recorded.
These codes are recorded in a blockchain platform, simply a system of coding methods that records information and data in blocks.
The code of each NFT shows the originality of the NFT. Below, as an example, you can read the impact of a purchase and sale on one of the Bored Hamster NFTs.
For example, Bored Hamster #1420 belongs to Sam, which he paid five-hundredths of ether for (very valuable, he could have bought more, but we’re just giving an example).
If Sam intends to sell his NFT to whomever he sells, the transaction’s date and time, the buyer’s and seller’s wallet address, and a series of other codes (that help the security of the blockchain) will be added to this NFT.
For example, Sam sells this NFT to Snoop Dogg. Now the NFT code is modified and written in the codes given by Sam to Snoop Dogg with such and such code.
In this way, it is clear at any moment who exactly a digital artwork belongs to and how much was spent for it. Not all NFTs, including the Bored Hamster collection, are exempt from this rule.
What is the reason for buying NFT?
Leaving aside the use of NFT in the digital world, Metaverse, business, etc., more importantly, people’s desire to truly own an artwork makes them buy NFT.
The sense of actual ownership in the world of NFTs is expanding its market daily and increasing its value of NFTs. In the digital world, such a thing was hardly possible before. For example, the copyright and sale of digital artwork in the past would have been violated anyway. But with the advent of NFT, each artwork is precisely defined and registered to whom it belongs.
For example, you can take a picture of an NFT from the Bored Hamster collection, download it, or set it as your phone’s background. But basically, it is not yours because you do not own it until you buy it. Therefore, you cannot use it.
A little about the history of NFT and blockchain
Regarding the process of creating NFT, we must go back to the past. In the old business models, two middlemen used money assets for buying and selling, which was sometimes very slow and expensive due to the trust issue. Blockchain, this new technology, is changing business models. Blockchain started with Bitcoin in 2008, and in 2014 when Ethereum was introduced, smart contracts on the blockchain allowed businesses to create tokens with cryptocurrencies.
Almost anything can be turned into a token. Tokens are fungible and non-fungible, and NFT was formed from this point. From around 2012, the first game NFT items were registered on the blockchain.
It was late 2020 when the cryptocurrency market was hot. Everyone was talking about Bitcoin and Ethereum, but for the past year, everyone is talking about the NFT market. It was even announced that they chose NFT as the word of the year 2021. Everyone wants to know what NFT is.
However, a large percentage of people are unaware of the nature of NFTs and the power of their expansion, or they don’t know why NFTs are so valuable. In the following, we explain what NFT is and why NFT has become so important that it can change the future of the world.
Although NFTs have been around since 2012, they reached the peak of their prosperity and popularity in 2021. These digital assets are now the way to buy and sell works of art, such as music, digital paintings, games, videos, etc. NFTs are registered on the blockchain platform.
Blockchain, which is a technology that stores data and information in a structure made up of blocks, allows artworks that are converted into NFTs to each have their code and data. and the information of each NFT will be stored forever safely, transparently, and without tampering. In this way, the right of ownership of any work of art is always clear.
For example, ،the Bored Hamster NFTs, which are registered and stored on the Polygon blockchain, each has its code that identifies its authenticity and ownership. Although you can download and use a photo or artwork converted to NFT, you do not own it. The property right is an important issue that is strictly observed in NFTs.
The issues of property rights, originality, and intellectual right, have always been important for investors. For a long time, mankind has wanted to be the real owner of something. Thanks to the blockchain and its precise technology and the emergence of NFTs, it is possible that a work of art can be registered at any moment.
Meanwhile, some people and investors buy art collections. Collections are more valuable in terms of cost, price, variety, favorability, exclusivity, and ownership. For this reason, NFT collections are designed and produced in large numbers, and investors are more interested in these collections.
For example, there are 10,000 Bored Hamster NFTs, all of which are unique, but some of them are designed more specifically and differently, which also have a higher price.
NFTs are bought and sold in large markets, such as OpenSea, where you can also find Bored Hamster NFTs.
Related Post : For more information and training about NFT marketplaces, you can read the following articles:
It was late 2020 when the cryptocurrency market was hot. Everyone was talking about Bitcoin and Ethereum. But a little later, about 1 year after the Bitcoin bull run, until recently there is talk of the NFT market everywhere.
NFT is the word that has been announced as the word of the year 2021. Everyone wants to know what NFT really is. However, a large percentage of people are unaware of the nature of NFTs and their power to spread, or don’t really know why NFTs are so valuable. In the following, we explain what NFT is and why NFT has become so important that it can change the future of the world. But if you want to know more about the first NFT projects, we suggest you read these articles:
A token is any asset whose transaction is encrypted. Tokens are encrypted on the blockchain platform, but NFTs are digital assets. Some kind of cryptocurrency like Bitcoin and Ethereum, but NFT and cryptocurrencies have significant differences.
For how to buy NFT and invest in this market and to know about NFT projects and collections, we suggest that you don’t miss the articles “best NFT projects to buy” and also “What to check before buying NFT“.
Unlike cryptocurrencies, NFTs are unique and non-fungible. Want to know how NFTs work? We suggest you read this article :
When the 3D virtual world is created, i.e. the metaverse world, NFT has applications in this 3D digital world.
Yes, Metaverse is a 3D digital world for people to do business, receive services, have fun, etc. For example, Metavers.AE, which will be launched soon, is one of these powerful Metaverse platforms.
In cyberspace, Metavers.AE is one of the places where Bored Hamster NFTs will have a special place, and those who have Bored Hamster NFTs will receive special facilities in Metavers.AE.
NFTs have different uses. From creating ownership for art items (both physical and virtual) to user profiles, identification, metaverse avatars, video game items, etc. For more information about NFT applications, I suggest you read the article What is the benefit of NFT?
In a general summary, it can be said that NFTs are currently used in art, membership fees, buying and selling tickets, gaming, and Metaverse. This emerging invention is at the beginning of the way and its applications are increasing day by day until today it has attracted many people interested in investing and making profits in this industry. Surely, with the increase in the general awareness of users about NFT and its applications, we will witness the further development of this industry in various fields.