NFTs are one of the most talked-about topics in blockchain in 2020, right up there with The Halving and DeFi. So, what exactly are NFTs? Why do they matter? How do you get them? The explainer below should get any beginner up to speed. Let us know in the comments if you have any questions, and join the WAX Telegram to discuss NFTs with the most active NFT trading community around.
What is an NFT?
NFT is an acronym for “non-fungible token” and you can think of it like a digital collectible, such as a trading card.
An NFT is similar to a cryptocurrency in the sense that it trades on a blockchain and has a monetary value attached to it. The difference between a cryptocurrency and an NFT though is that an NFT has certain characteristics that make it different from other NFTs, even if the two NFTs seem similar to one another.
For example, if you trade 1 bitcoin for another bitcoin, you are trading one identical thing for another. There is no loss of value on either side of the transaction — you both end up with 1 bitcoin. But if you trade 1 NFT for another NFT, they can be drastically different even if they appear to be the same. This is because an NFT includes a deeper layer of characteristics that make it different from others. These characteristics can include metadata, visuals, serial numbers, etc. and can all affect the value of the NFT based on what characteristics are valued by the people who buy and sell them.
NFTs therefore create exciting monetization opportunities for brands and collectors, as they are provably authentic, safe to trade, and can include all different types of artwork and branding opportunities.
NFTs are also sometimes called Niftys, non-fungible tokens, or Crypto Collectibles. NFTs trade on a number of different blockchains, however the WAX Blockchain is by far one of the most active blockchains for NFT transactions.
What are some examples of NFTs?
Examples of popular NFTs include:
- Topps “Garbage Pail Kids” trading cards, an iconic cult-classic collectible since the 1980’s reimagined as NFTs
- William Shatner, the legendary actor whose roles include Captain Kirk in Star Trek, who released personal memorabilia to the public as trading cards
- Blockchain Heroes, an original trading card series featuring the likenesses of personalities in the crypto and blockchain space
- Prospectors, a popular blockchain-based game where players earn NFTs based on their gameplay which help improve their in-game performance
- CryptoKitties, the “OG” popular NFT series that skyrocketed NFTs to popularity back in 2016 and even though they quickly fizzled out, they are one of the most recognizable names in the NFT world since they were the first to be successful
What can I do with NFTs?
Since NFTs trade on a blockchain, you have a lot of freedom when it comes to what you can do with them including:
- Buy NFTs on a marketplace
- Sell NFTs on a marketplace
- Trade and/or gift NFTs with others
- Use NFTs in decentralized applications (dApps) such as in games
- Showcase your public NFT inventory, for example in a dApp or on social media
- Build and curate collections
How do I get NFTs?
One of the reasons that NFTs on the WAX Blockchain are so popular is because unlike other blockchains, it’s so easy to acquire them. Simply create a WAX Cloud Wallet (WCW) account using just a username and password or even your social media account like Twitter, facebook, or Reddit. In just two clicks, you can start buying, selling, and trading WAX NFTs.
Once you have a WCW, you can acquire NFTs in a few different ways (depending on the NFT) such as:
- Acquiring NFTs from playing a game or interacting with a dApp
- Purchasing NFTs on a marketplace
- Have an NFT traded to you by someone else
How do I buy NFTs on WAX?
In the case of NFTs that trade on the WAX Blockchain, you can purchase them on a number of NFT marketplaces, listed below (these are often referred to as “secondary marketplaces” because they are sold on these marketplaces after originating elsewhere — think of Amazon as a primary marketplace and eBay as a secondary marketplace).
To purchase WAX NFTs on these secondary marketplaces, you need WAX Tokens which you can purchase on the websites listed here. You’ll send the WAX to your WCW name, which ends in “.wam”
Log in with your WAX Cloud Wallet, select the NFT you wish to purchase, and complete the sale as instructed by the marketplace.
Secondary Marketplaces on WAX:
Primary Marketplaces on WAX:
WAX also launches sales in conjunction with partners which can be purchased with either WAX Tokens or a credit card (depending on the partner and the sale). In the past they have sold out in as quickly as nine minutes, so stay tuned to WAX’s social media channels for news about upcoming sales:
Where do I see my NFTs?
You can view your NFTs in your WCW or on a marketplace that transacts them. You can also view them on block explorers like wax.bloks.io
Where can I learn more about NFTs?
Join the WAX Telegram to discuss NFTs with the most active NFT trading community around.