What Are NFTs? The Mysterious Million Dollar Tokens

What Are NFTs? The Mysterious Million Dollar Tokens

With the rise of digital art and online marketplaces, a new term has flooded the online world: NFTs.

You may have seen artists and creators selling their work as NFTs on platforms like OpenSea and Rarible or heard about people spending millions to own a single NFT.

But what exactly is an NFT, and why is it causing such a buzz in the art world? According to NonFungible.com, the weekly volume of NFT sales grew from $1.2 million in January 2020 to $2.5 billion in the first quarter of 2021.

In this blog post, we’ll break down the basics of NFTs and explore how they are changing the way we think about art and ownership in the digital age.

What Are NFTs?

NFTs are part of the contemporary blockchain technology and trade turmoil. It is the freshest blockchain upshot after the cryptocurrency.

NFT is a digital asset that is unique and cannot be replicated. It is created using blockchain technology, which means that each NFT has a clear record of ownership and its authenticity can be verified.

NFTs can be anything from digital art, music, tweets, and even virtual real estate. They have captured the attention of art collectors, gamers, and techies alike because of their ability to provide a new way of monetizing digital creations.

One of the most famous NFT sales was the digital artwork “Everydays: The First 5000 Days” by Beeple, which sold at Christie’s for a record-breaking $69 million!

The possibilities for NFTs are endless, and they continue to evolve and grow in popularity as more artists and creators jump on the bandwagon.

NFT Meaning:

NFT stands for non-fungible token

What Are These Non-Fungible Tokens?

NFTs are digital tokens that represent the ownership of any unique item on the blockchain ledger.

These digital tokens are indivisible and verifiable through a digital catalog. Their record is preserved through blockchain smart contracts.

What are Fungible and Non-Fungible Assets:

Let’s jump into Economics and find out the real motive of Fungible and Non-Fungible Assets.

Fungible Assets:

Fungible assets are those which can be exchanged and transferred to anyone with their property rights.

For example, if John owns a hundred-dollar note and pays it for his hostel fees. The asset ownership rights are now shifted to someone else. 

Non-Fungible Assets:

Non Fungible assets have a unique digital identity that can’t be exchanged or transferred to any other character than its particular owner. A non-fungible asset is recorded on the blockchain ledger with the individual owner’s name.

What Is the Link Between NFT and Cryptocurrency?

Cryptocurrency and NFT are both characters of blockchain technology. You can say that NFTs are an advanced form of cryptocurrency.

Crypto coins can be transferred or exchanged while NFTs can’t. NFTs are part of the Ethereum blockchain.

The record of these tokens is registered on the Ethereum blockchain ledger. All the crypto coins Like Bitcoin, and Dogecoin can launch their NFTs.

Why NFTs Worth Millions?

NFTs are selling for Millions of Dollars. Some of the leading and latest auctions are as follows.

1. The Artistic Gif of Viral Nyan Cat was sold for almost $500000 on the Foundation NFT marketplace.
2. Musician Grimes sold some pieces of her digital artwork for $6 Million in an auction.
3. Founder of Twitter Jack Dorsey put his first-ever tweet for auction with his autograph. Bids of $2.5 M were placed on this digital piece.
4. Beeples digital artwork sold for $69 M in Cristie’s auction. This was the most costly NFT sale. 
5. Elon Musk also tweeted about his NFT song auction recently.

How Can We Buy/Sell NFTs?

NFTs can be bought/sold through online marketplaces. If you are an artist, musician, or blockchain trader, There are several platforms where you can place your NFT items or participate in auctions. You have to pay at least $100 as the fee to the marketplace.

Some of the famous NFT marketplaces are Nifty Gateway, Makers Place, Super Rare, Open Sea, DecentRaland, Rarible, Axie Marketplace, NFT Showroom, and Foundation.

Final Verdict On NFTs

The popularity of NFTs rose in recent times. It is now the talk of the town for some days. NFTs are part of the blockchain craze. No one knows how long it will last, but people are more cautious about it.

There are several flaws in its launching. Several artists are feeling insecure about their artworks. There must be some changes in its process.

At the current pace, blockchain might be the primary entity of future trade.

Does this make sense that you will pay millions to buy a youtube video that you can download with just one click at any time?

Celebrities and influencers are participating in its reputation.

Frequently Asked Questions