NFT for beginners
If you’ve ever heard of the term NFT on social media and didn’t understand what it is, you’re in the right place, we’ll give a quick introduction and dig deeper into this field and its utilities. People are spending and making millions in this field, so you probably asked yourself what the heck is this?
The abbreviation NFT stands for Non-Fungible Token, which in simple terms, is a digital asset you own that is stored on a blockchain. A blockchain is a database that stores information in a decentralized way. This asset is non-fungible, which means that it’s unique and can’t be replaced. A counter-example would be a 20$ bill, if we both have one, and exchange it, it’s still the same, we both have 20$ each at the end of the day, which has the same value.
An NFT can be anything digital, such as drawings, music, pictures, even tweets. But the real added value is by how we’re selling art using tech, which can then be used to sell anything. It’s basically a record of ownership of a photograph, a work of art, or a document, backed by blockchain technology, and is able to be bought and sold. Any document could be an NFT like invoices and purchase orders.
NFTs are being sold for thousands and even millions, especially the ones from the CryptoPunks collection, which is 10,000 unique collectible characters. The current lowest price available is 242 000 $, some of them are sold for 7 and 10 M $. But who would pay millions for what basically is a digital trading card? That’s what makes NFTs so unique and messy. Some people handle them like they’re the future of fine art collecting, and some people treat them like Pokémon cards, where they’re accessible to normal people but also a playground for the mega-rich. One of the perks of owning an NFT in an expensive collection is the exclusivity it offers. You’re now part of a very selective club, whose members share the same mentality and support each other. Some projects provide utilities when you own an NFT of the collection, like access to exclusive events, online courses, and funding opportunities.
NFTs are going to take over the industry of events, be it live or online, even in the metaverse. Don’t be surprised if events and concerts adopt NFT-based tickets in the coming years. We went from paper tickets to QR codes, so why not an NFT now. The internet itself was too complicated early on, people who say the same thing about NFTs are very bad at history.
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