What’s so special about NFTs | Everything that you need to know.
Makhdoomi January 25, 2022
What are NFTs?
Before we go into the details of NFTs, let’s know a few terms so that we can understand this topic in a better way.
Fungible- means it can be replaceable with another identical item. For example a unit of currency, oil, bonds, and gold.
Non-Fungible- means that it is one-of-a-kind and cannot be replaced by anything else. Land, Art, People, and Game characters are non-fungible because each item has distinct characteristics.
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A non-fungible token (NFT) is a unit of data on a digital ledger called a blockchain, where each NFT can represent a unique digital item, and thus they are not interchangeable. NFTs can represent digital files such as art, audio, videos, items in video games and other forms of creative work.
NFTs are titled to represent one instance of virtual evidence — like an ownership certificate. Depending on the game, this could mean anything from a painting to having won or lost in battle. NFTs can’t be replaced because they are unique digital representations of things that do not exist in the physical world. However, unlike other digital assets which lose much value after being copied over and over again (like software), every individual token is worth the same as every other token of its kind. So if you find one, it has value! The best way to convert them into cash is by selling them at auction or trading them through peer-to-peer exchanges where players swap tokens for money.
What you need to know:
- They are built on blockchains. These are distributed public ledgers that record transactions. Each NFT is stored on the blockchain with an identification code and metadata that makes it as unique as a fingerprint. In this context, “metadata” means “data about data” and is simply a bit of extra information that describes the NFT and is stored alongside it.
- They’re an excellent way to mark digital assets and control their supply. Whether you’ve created a piece of music, a digital artwork or video, “minting” it as an NFT means that you can prove ownership over it (as each NFT is distinct and traceable). Previously, digital assets were fairly easy to steal. This is huge as it means artists can’t be cheated out of royalties anymore and collectors don’t have to worry about investing in something that’s a fake or a forgery.
- This is also an excellent way to control supply of digital content, which is key to driving up its price. Because it attributes one owner to one piece of content, even if others can see the NFT, only one person can own it.
- Think of them as digital receipts or signatures. If you’re a collector, NFTs can be considered the digital equivalent of the kind of receipt you’d get after you’ve bought something physical (like clothing or food) from your favorite store. As an artist, turning your work into an NFT is a way of adding a digital signature that can never be forged or removed.
How do you create an NFT:
Surprisingly, creating an NFT isn’t complicated, and there are platforms where you can get guidance on the entire process. NFTs are built and supported by a particular blockchain, with Ethereum NFT being the most popular. Apart from Ethereum, Flow and Binance are also commonly used for its development. You need a crypto wallet and cryptocurrency, mainly Ethereum, to transact. You can sell NFTs for cryptocurrency or fiat money through smart contracts, and the transfer is recorded on a blockchain.
Individual NFT artworks are among the most popular and valuable non-fungible tokens created so far in terms of profitability. The history of blockchain and art changed dramatically on March 11, 2021, when an auction house sold artwork for a staggering $69 million. This was the auction house’s first time auctioning a fully digital artwork.
NFTs, give the right of ownership to the artist such that when you create a digital asset, you’re able to show proof of authenticity and profit from your work. If you happen to be a meme creator, you get to benefit when it circulates. Looking at it from that perspective, NFTs are a revolutionary technology for art creators
It also depends on what you think is art. It can be anything from a picture to a GIF to a video file. To someone out there, it will seem artistic. Creating is up to you, you could make anything separately using software like Photoshop, or you can make it online on Opensea or Rarible.
After your art is ready you need to list it on any NFT selling platform like Opensea or Rarible. You will also need a wallet like Metamask Ethreium wallet etc. linked to your browser. Fill in your profile. Upload your NFT and choose the blockchain system you wish to create the token with. Post a price and set a limit of days the NFT will be online.
How do I sell my NFT:
Selling may seem an easy process. Find a customer, agree to the price and complete the transaction through your crypto wallet. But only the first step is a hectic one. You do not find customers for NFT’s so easily. You will have to rely on many things to sell the product most importantly promoting.
What are the best ways to promote NFT:
Here’s how to efficiently advertise your NFT collection:
1. Social Media
For digital marketers, social media is a must-have tool
. And the explanation is straightforward. Facebook, Twitter, and Instagram — the three largest social media platforms — have almost three billion customers. That’s roughly half of the world’s population, an audience you may use to gain attention for your NFT initiatives. Twitter is often regarded as the greatest social network for NFT collectors. CEO Jack Dorsey is a huge enthusiast of crypto art: He sold his first tweet as an NFT for $2.9 million!
You don’t need a large following on Twitter to sell your NFTs (contrary to popular opinion!) To make your art collection go viral, you’ll need a smart marketing
approach. Think about collaborating with well-known influencers to bring your artwork in front of a larger audience. Aside from Twitter, effective marketing tools include Facebook, Instagram, LinkedIn, Telegram, and Snapchat. You can easily acquire a huge audience by using sponsored advertising. However, combining paid advertising with organic promotion yields the best results.
2. Video Promotion
Sixty percent of Internet consumers prefer video to text-based material, according to research company Ninja. Surprisingly, video marketing
results in more engagements than blogging. This, however, should come as no surprise. They do not, however, watch just any video. After two minutes, around 60% of viewers stop viewing a video. Make a high-quality video if you want to stand out. Work with a digital marketing agency
to disseminate the material on platforms that will give your NFT initiatives the most exposure.
3. Establish Reddit and Discord communities.
Building a community of dedicated followers is one of the easiest strategies to advertise your NFT collection. A website, an email list, a Twitter account, or a YouTube profile can all help you develop a community. However, guess what? There aren’t many limits on the number of sites you may utilize to interact with crypto enthusiasts. So, sign up for Reddit, Discord, and other similar sites to communicate with other crypto artists.
The beauty of Discord and Reddit is that they bring together millions of individuals who have similar interests. If you have high-quality artwork, selling it on these channels will be pretty simple. Furthermore, you will have a network of admirers who will be able to purchase your artwork in the future.
4. NFT Marketplaces
After the NFT sector erupted in early 2021, a slew of new markets sprang up. Some platforms have been around for quite a while. However, there are various sites to sell your crypto artwork right now. Here are a few examples:
- OpenSea
OpenSea is the most well-known NFT trading website. OpenSea will list your first NFT project for free. You may also move your NFT collection from other platforms to OpenSea, even if the projects are from non-Ethereum wallets. You can also check data on the best-performing art pieces. Most importantly, collecting royalties is simple.
- Axie
Axie is an NFT marketplace owned by the same business that launched the video game Axie Infinity. It has a $2.1B trading volume, which is one-third of OpenSea’s $6.5B trading volume.
Axie is an excellent marketplace for selling attractive digital pets and other popular items among gamers. Axie, like OpenSea, allows you to mint original NFTs or add pre-existing art pieces. The nicest aspect is that NFTs on Axie have a use in Axie Infinity, which drives their values up significantly.
- Rarible
Rarible is a major NFT Marketplace with a $210M trade volume. It includes an amazing array of digital assets, from artwork and photography to music and sports memorabilia. Rarible is similar to OpenSea in that you can make numerous copies of the same thing and sell them to different individuals. For example, CryptoPunks: The series comprises 10,000 characters with similar fundamental characteristics but distinct appearances and traits. The NFTs can cost up to $7.58M.
- SuperRare
There is no certainty that your NFTs will ever be worth millions of dollars, and however, SuperRare is a marketplace committed to assisting artists in making the maximum money from their artwork.
SuperRare prioritizes the quality of NFT projects over the number, and it accomplishes this by collaborating with artists to help them mint the greatest NFTs possible. The platform is also highly tailored, allowing you to target a specific demographic depending on the NFTs you offer.
What’s so much special about having an NFT?
NFT is something original that exists in the digital world. It can be any form of digital data that ca not be replicated. Having an NFT means that you have the original piece of data that was created. Think about a ball that was played by well known sportsperson. This ball has a great importance for the fans of the sportsperson so this ball will be sold on auction for very huge prices to the fans. The one who purchases it will be given a the ball with the certificate to prove that this ball is the legitimate one that belonged to the sportsperson with other details. That is something which happens in case of NFTs. Having an NFT is a similar experience. The fans here are collectors which sometimes are n a competition with one another that who will collect how many or who will have the best of them. What drives so much attention to the NFTs was somewhat related to this competition. But why people now are crazy about NFTs is because it can be traded with crypto and it looks like they have promising fortunes. So why most of the people are crazy is because they want to go with the trend and that is a reason we can say that NFTs are a sort of bubble.
Is NFT a bubble?
Well Yes! On a very large extent it is a bubble that arose due to the news about how costly some of the NFTs were sold. It was something that caught attention of large masses mostly those who had been into the crypto things. The fact is that NFT is not something that everyone is interested in. What everyone is interested in is following the masses that are trying their luck in these things. In actual what drives the population towards thee things is greed and the yearn to earn quick money.
Why are some NFTs expensive?
This is due to the reason that these digital assets are traded in crypto so they have a fluctuating value which depends on the value of crypto in turn. This can be understood by a clean example. Suppose a collector brought an NFT for 2 Ethereum coins in 2019 which had a value of about 150$ at that time and the collector now wants to sell it for same or more Ethereum coins or even a bit less then he will be selling the thing as per the value of about 2100$. That is what is hiking these prices. Also some collectors do by their free will wish to purchase an art for much great prices. Also some data is so much special like the tweet of some celebrity that it attracts much collectors which compete to buy the special thing. This all makes NFTs so much expensive.
Some NFTs that were sold millions:
The Merge: USD 91.8 million
Ringers 109: USD 6.9 million
Everydays — The First 5000 Days: USD 69.3 million
Human One: USD 28.9 million
CryptoPunk #7804: USD 7.57 million
CryptoPunk #7523: USD 11.75 million
CryptoPunk #7523: USD 11.75 million
Right-click and Save As guy: USD 7.09 million
Is it worth in investing in NFTs:
From a certain point of view, the value of NFTs is in the eye of the collector. After all, owning a totally unique object — the ultimate criterion for every true collector — may be worth nearly any expense if you want it badly enough.
