Non-Fungible Token (NFT) is a unique digital asset designed to represent the ownership of virtual items transacted digitally. It’s encoded using block technology like cryptocurrency, and that’s where the similarity ends.
Cryptos are fungible, which means that they can be traded for one another. But NFT’s are non-fungible, which means one cannot exchange one NFT with another NFT. Each has a digital signature, thereby making each token unique and irreplaceable. This unique identity and ownership of an NFT are verifiable via blockchain technology and thereby avoids the involvement of any agents.
Be it art, music, videos, in-game items, collectibles, etc.; in the form of JPGs, MP3s, videos, GIFs, and other formats, it can be converted to a digital asset through NFT. Even Tweets count. Twitter co-founder Jack Dorsey sold his first-ever tweet as an NFT for more than $2.9 million.
Wondering How Can You Create Your Own NFT Token?
First, you will need to choose your artwork; it can be any digital file. Then figure out which blockchain you want to use. The most commonly used crypto is Ether, and most of the platform has Ethereum support. Post that, one can list your NFT in a marketplace like CryptoPunks, Opeansea, Axie Infinity, etc.
Each of these platforms has its listing process, which involves writing a couple of details and uploading your item. And, once all of this is done, you will have successfully created your token.
How Can You Buy NFT?
To buy NFT, you will have to have a digital wallet and purchase cryptocurrencies. You can buy crypto using your credit card on platforms like Coinbase, Paypal, eToro, and many more. Once your wallet is set up, you can buy NFTs. Research before buying.
Does NFT Have Its Future?
Investing in NFT can be risky since its value is based entirely on what someone else is willing to pay. The demand for it will set the price. It means that NFT resales for less or may not be sold at all if no one is willing to buy.
Digital artist – McCoy is optimistic. He believes that sociocultural norms around the preservation of internet culture will continue to change for the better. NFTs can create opportunities for new business models that didn’t exist before. Artists, musicians, and others can have a new source of income. They will receive royalties every time their NFT is resold, meaning the owner can benefit if their work’s value increases.
Though it’s early to judge, the concept of NFT is unique and beneficial to artists. No one can alter the metadata on the token; neither can it get erased, misplaced, or removed from the blockchain. It is entirely secured and transparent.
NFTs have not even completed a decade, so there is not much history that can decide whether it will have a positive impact or a bubble.
