For the past two years, almost every other person has come across the term NFT or Cryptocurrency or Bitcoin or something else that has triggered some thoughts in our mind like what exactly they mean, why they are so popular, why people are talking about it, why people are investing a lot of money in it!
Well! To clear all your doubts, here’s a script that would clear your doubts and let you dive into the world of NFTs, Bitcoins etc. This small blog piece would drive you around, clearing all your doubts about what is NFT? How have NFTs made such a vast presence in today’s world? Should you invest in NFTs or not? And how are NFTs going to change the future?
Let’s understand what exactly is NFT?
NFTs are the Non-fungible tokens! Don’t worry; we will let you know more about it ahead of! “Non-fungible” by definition means one of a kind. In layman’s language, non-fungible implies something irreplaceable or cannot be exchanged mutually.
NFTs are the digital assets owned by individuals in the form of digital artworks, music etc. These assets are unique for any individual and cannot be replaced. These assets hold considerable value, and people can buy or sell these assets online. Now you’re clear about what exactly does NFT mean, now you might have several other questions in your mind: why these artworks are so costly and why exactly people do with these artworks? Also, why do people buy artworks, and where are they delivered or used?
So don’t worry! Take a cup of coffee and stick with us!
Why are these artworks so costly, and why exactly do people buy these artworks?
NFTs have been in the world since 2014, but they gained a boost during this pandemic because of the rise in the number of online users. It eventually increased the demand for online digital artworks.
These artworks are costly. The artworks hold some hidden units of data in them. This data is unique and non-interchangeable. The information is stored on a digital ledger that helps the owner have proof of ownership over the piece of artwork.
NFTs are not at all similar to Cryptocurrencies that can be exchanged. NFTs cannot be exchanged.
People buy these artworks because when the artwork is sold to a collector, its value is much more than itself. As an article shared by FORBES, Mike Winklemann sold his most famous NFT, “EVERYDAYS: The First 5000 Days,” at a breaking record-breaking $69.3 million.
Collectors charge more than the actual value price of the piece of work to own the artwork because they value the “digital bragging rights” more than anything else.
These artworks are available online with the whole-sole ownership of the individual owning the piece of work.
So, we hope now you’re clear with why people invest in NFTs and why they do it. Now let’s move ahead learn something more!
How do NFTs work?
NFTs reside on a blockchain. A blockchain is a ledger that records unaltered digital data and its distribution. It was initially invented for Bitcoin and now allows the existence of cryptocurrency by maintaining a secure and decentralised record of transactions. The ownership of an individual and the transactions made by the respective individual over this blockchain.
NTFs can be either created or “minted” from digital objects. These objects can be both tangible and intangible. This digital object includes Art, GIFs, Videos and sports highlights, Collectibles, Virtual avatars and video game skins, Designer sneakers, Music, etc.
As we now have some idea about how NTF is helpful now, a question arises about how NFT is changing the future?
NFTs have made their presence at a pace much faster than they used to have long back in 2014. All credit goes to the growth of social media that enabled people to know their own NFT.
NFTs helped budding creators to sell their products at a price that’s suitable to the buyer and handsome for the seller (here the creators). If this wasn’t discovered, it might have been possible that the products might not have had a stake in the markets.
NFTs most likely come with a license to the digital asset. However, it doesn’t confer copyright ownership. This allows the copyright owner to reproduce the work. In addition, they don’t need to give any royalty to the NFT owner.
If you are a buyer, then NFTs help you support your favourite artist and also own an acclaimed certificate of authenticity to the piece of their craft. Buying an NFT also usually gets you some fundamental usage rights, like posting the image online or setting it as your profile picture.
NFTs are even serving as a new platform for the passionate collector to get ownership over their desirable product choice. It helps them show up and boost their confidence for achieving another milestone.
With the days coming ahead, people are going more digital and thus are looking for more opportunities to explore and grow. As a result, the presence of budding creators is definitely going to get recommendations based on their performance. Investing and learning about NTFs needs to be done at an early stage to enable the creators to grow and the audience to get another source of investment to make their futures bigger and better!
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