What Are the NFTs and How They Became so Popular
NFT were created back in 2017 and their popularity has been growing ever since, each passing minute, there is more people using them, from common folks to worldwide celebrities and powerful companies
They were created back in 2017 and their popularity has been growing ever since, each passing minute, there is more people using them, from common folks to worldwide celebrities and powerful companies, but what are the NFTs, and how did they become so popular? Keep reading this article to know the answer.
What are NFTs?
The Non-Fungible Tokens are essentially, a digital asset that has an unique code that distinguishes it from the rest. It can be almost anything, from a picture, a drawing, a song, an autograph, a meme or even a tweet. Basically, any item that can be made digital can become a NFT.
These digital assets cannot be destroyed, copied or changed, that’s what “Non-Fungible” means. Thanks to that, the generated code when a token is created, is unique in the world and there cannot be another item with the same code, ensuring the authenticity of the asset.
Why are they so popular?
They started to become popular thanks to an artist named Mike Winkelmann, when his work “Everyday: The First 5000 days” was auctioned by the incredible amount of 69.3 million of dollars on March 11th 2021, it became the most expensive NTF in the history and the third most expensive artwork created by a living human being. Another example of a millionaire transaction was the case of Twitter’s CEO, Jack Dorsey. He sold his very first Tweet for 2.9 million of dollars on March 21st 2021.
These circumstances caused the Non-Fungible Token’s popularity to sky-rocket. Thanks to its unique code singularity, there is more and more artists and collectors using them, since they can verify the authenticity of the product without going to an expert, saving money in the process.
Another reason of its popularity is the fact that a Non-fungible Token can be anything digital. A book, a song, a drawing, an action figure, a picture, a digital firm, an audio, a meme, a Tweet, or a card. Any collectable item has a spot in this digital world.
Did you Know
The band Kings of Leon sold its latest album via NFTs and made more than $2 million from the sales.
How do they work?
Let’s start from the beginning, in the place that they were born. Ethereum is a free-source platform in which the digital contracts are created, these are the base of the Non-Fungible Tokens. These contracts work like a stamp, a property title, that verifies you as the original owner of the asset, and at the same time, confirms that it is the original token, no matter how many copies exist in the world.
These Tokens are stored in a Blockchain, which allows you to track it at any time, without the risk of making mistakes. This is made possible thanks to the fact that records in a Blockchain are kept forever, no one is able to alter or copy them. Basically, they are somewhat undestroyable.
Thanks to their natural aspect, the NFTs greatly favor artists, as it protects Copyright like no other digital asset. It’s because of this, that there are more artists, musicians and writers that consider joining this digital world.
Can I do transactions with NFTs?
Of course, anyone can do it! You just need to create a Cryptowallet, like any other Cryptocoin. These “Crypto-wallets” are just like a common wallet or bank where you save your money, but digital, more private and safer, since you don’t have to pay for interests or commissions.
There are plenty of alternatives that you can chose from, one of the best is Coinbase, since it has Ethereum support.
Once the Cryptowallet has been created, you’ll get two keys, one will be public and the other one private.
The first one works like a cell number, but for digital transactions, this will allow other people to contact you. The second one is the key that verifies you as the owner, so you must keep it safe.
Once you’ve got your wallet ready, you are ready to buy or create your own Non-Fungible Tokens.
However, it is important to know that the creation of a Token costs money, how much? Depends on the cryptowallet you are using and the type of NFT you are planning to create, so keep that in mind before creating one.
Advantages of NFTs
Maybe you are thinking of acquiring your own token, but you may have some doubts. Don’t worry, we will present you with some advantages of buying and selling NFTs, and then you can decide whether you enter in this world or not.
- Being a Non-Fungible digital asset, their quality will not decrease with the passing of time.
- If you create a token, you can sell it to thousands of buyers and still keep the original one, since the code cannot be replicated, so there will be thousands of pieces just like the original one, but with different codes.
- These are stored in a Blockchain, so they cannot be removed or changed, the record will always remain there and can be tracked at any time, making it easy to verify its authenticity.
Final opinions about NFTs
This type of digital asset greatly favors the artists and content creators, protecting the rights to their work, which can be translated into more monetary benefits. The door is open for anyone who wants to enter.
It is a fact that the NFTs popularity will continue to increase in the years to come, so if you’re an artist, musician, singer, or you just want to sell any digital item you possess, maybe it’s time to think about joining in the fun. We hope that our article has been helpful and you find your way in the world of Non-Fungible Tokens.
Aerial photo of city pic: Jermaine Ee | Stock and NFT Crypto Market Values pic: Maxim Hopman | Jack Dorsey"s first tweet NFT pic: Jack Dorsey | Video: CNBC International