This cultural phenomenon has taken the globe by storm, and many people are still as confused as you. The NFTs are a buzzword in the business world and have been around since 2014. The NFT is everywhere, from being associated with celebrities and participating in multi-million-dollar auctions to having affiliations that include A-list stars.
Bold and Collective are often contacted by prospects and clients asking about NFTs. They explain what they are and how they can be used to promote their business. This blog provides a complete overview of what you should know about NFTs.
What is an NFT?
It stands for Non-fungible token. It is a digital asset that cannot be duplicated. You can trade it amongst NFTs, but you’d have something entirely different.
The NFT is the digital record on the blockchain (digitally distributed publicly ledger). It stores all information associated with the file, such as who created it and linked it to the blockchain.
An NFT is similar to Cryptocurrency
NFTs can also be built using the same programming language as Cryptocurrency like Bitcoin and Ethereum. NFTs are however non-fungible. Each NFT is unique and cannot be exchanged.
This is what makes them unique. Cryptocurrency is a trustable method of transacting on blockchains. It has a value that is equal to all other currencies and can be traded for another.
What is an NFT?
An NFT could be any digital thing. Examples of digital art include music, drawings, video games and digital art.
These can then be sold on online marketplaces. One notable example is “OpenSea”, which has a market value of over 13 billion dollars. Adidas has created some with Bored Ape Yacht Club, and a collaborative NFT project together with Prada. Even Mcdonald’s and Twitter have included NFTs into their marketing mix for this platform.
What are NFTS Used for?
Content creators and artists have the opportunity to monetize projects using NFTs or blockchain ledgers without having to physically do so. Artists don’t need to depend on live auctions or gallery shows to be able sell their art.
Artists can then sell directly to consumers. The creators will also receive a portion of any sale, which creates a steady stream of income for artists who don’t usually have this option with physical art.
From an artist’s point of view, NFTs could be the future of the industry , and something worth considering.
Where can I buy NFTS?
As a preface, it’s important to set up a digital wallet that can store all NFTs or cryptocurrencies. You can buy crypto using platforms such as Coinbase or PayPal. Once you have your digital wallet, you are now ready to enter the marketplaces.
These are the current top NFT markets:
- OpenSea.io. – This marketplace is known as the “amazon for NFTs” and offers a wide range of NFTs that consumers might be interested in.
- Rarible – This marketplace allows artists to sell and create their own NFTs, similar to OpenSea. RARI tokens allow holders to contribute to community guidelines or fees.
- Foundation – To be able post their artwork, artists need to receive “upvotes” from other creators or an invitation. Artists who want to make a profit from their projects in a unique way would benefit the most from this platform.
Where is the value in an NFT?
It is possible to wonder why anyone would spend so much on a digital file, which can be copied and distributed free of charge. It would be best to explain it in terms of art.
Van Gogh’s starry evening could be owned by many people, but only one original painting is available. You could argue that digital copies are the same quality, but it’s more about who owns the original file.
Should I Join NFTS?
It all depends on whether you are an artist who sells NFTs of your work or if the buyer/collector is NFTs. Selling your work as an NFT to an artist may be a wise decision. It will allow you to access a market that may not exist in the real world.
You will also be compensated financially if your NFT becomes more popular and valuable.
There are also collectors and buyers of NFTs. These people buy NFTs to support artists they choose. They also enjoy the perks of owning some rights, such as being able to upload the NFT or use it as a display image. Most people begin to question whether NFTs are worth investing in.
It’s all subjective. You decide if these files are worth your time.