The news about the so-called NFTs or NFTs has become one of the most popular news during the last period, as every period of time appears a news about the sale of a photo, a music clip, or even a tweet on Twitter for huge amounts amounting to millions of dollars, but despite that, the term NFT is still not A concept that most people have far from being associated with digital currencies or cryptocurrencies.
What is the NFT?
NFT is an acronym for non-fungible tokens or non-fungible tokens, but as it turns out, the phrase “non-fungible” is a bit vague. In short, it means that it is unique and cannot be exchanged for something else. For example, cryptocurrencies like Bitcoin are exchangeable. For exchange, one currency can be exchanged for another of the same value, but for NFT they are digital assets, each of which has a different value that cannot be exchanged for other assets.
While NFTs give a person proof of ownership of a digital asset (a photo, video, drawing, tweet, or music clip
) so that they can monetize ownership or the right to own, because the image or video, for example, is easy to obtain and difficult to maintain after Publish it online, owning an NFT does not necessarily mean that a person has exclusive rights because anything digital can be copied infinitely.
To be clear, the NFT can be compared to the Mona Lisa, where anyone can go to the museum and see the painting and even take a picture of it, but he can't bring the painting home with him because he doesn't own it, but the painting hanging on the wall in your home is like an NFT board because it's all yours and you decide what you want to do with it.
How do NFTs work?
Non-fungible digital assets (NFTs) are based on the blockchain technology on which digital currencies depend, specifically on the same blockchain technology that the Ethereum blockchain depends on, as the technology can store additional information that makes it work differently from the Ethereum currency itself, and other blockchain technologies can also provide Special versions of their technologies also support NFT.
How do you verify the authenticity of your NFT?
Due to its reliance on the blockchain technology, it is easy to trace it transparently and verify its authenticity and authenticity, as the technology records the complete history of all its owners, and some see NFTs as a digital contract like various digital contracts.
NFT sales increased from $13.7 million in the first half of 2020 to more than $2.5 billion in the first half of 2021, a 20-fold increase.
What forms of NFT can be sold to others?
Any digital asset or digital file in a nutshell can be or sold as NFTs, including graphics, music, videos, GIFs, and any other digital format, but most non-fungible symbols now are related to digital art, as can a tweet on Twitter, where Jack Dorsey, co-founder and CEO of Twitter, has sold one of his tweets as NFT for nearly $3 million.
NFTs can also be a meme or comic, as the “Doge” meme depicting a Shiba Inu dog was sold as an NFT or non-fungible digital asset earlier this year 2021 for about $4 million, the meme that inspired the creation of Dogecoin digital currency.
How to create a non-fungible NFT token?
While the value of non-fungible digital assets or tokens can reach millions of dollars, creating an NFT is not difficult at all, as an image or GIF file can be created in any way, including any drawing or photo-editing application or even Windows Paint. , but the user has to choose the format first - it can be any type of digital file - including text, music or video, and the more unique the better.
Once the user chooses what you want to put up for sale, you will need to know the blockchain technology you want to use or simply the digital currency you want to associate your NFT with, Ethereum is the most used cryptocurrency by NFTs platforms, and the user may need some Ether or Ethereum to offer its NFT in one of the stores, where these stores charge a fee for this, except for the open-source OpenSea platform, which provides the process for free, but the user still needs a digital wallet to create an account and register, and after registering in any platform for trading tokens or digital assets that are not For NFTS, the user just uploads the digital file and writes some details.
How do you sell your NFT once it is created?
After your token is listed on any of the digital platforms or marketplaces, the NFT is available for bidding by others, but a fixed price can also be set on the sale page and the returns you want to get from the initial sale and subsequent sales.
Is trading NFTs the same as collecting works and artifacts?
As hard as it sounds to comprehend, some people actually think so, as one person paid nearly $390,000 for a 50-second video by Grimes, and another person paid $6.6 million for a video by Beeple, and someone bought People tweeted Jack Dorsey, founder of Twitter, for nearly $3 million.
NFT Trading Platforms
The 6 most unique and popular NFT platforms are:
OpenSea
Considered the largest online platform for selling NFTs, it gained strong momentum in digital asset sales last year, with trades on the platform reaching $10 billion.
It peaked last August at $3.4 billion, according to data from Dune Analytics.
OpenSea allows listing and trading of various digital assets on its platform.
Axie Infinity
This platform stands out from other NFT platforms in that it offers digital assets related to video games.
Thanks to this feature, the platform was able to make billions of dollars, as there are more than 270 million tokens or digital assets inspired by video games on its platform.
It seems that GameStop wants to design a platform similar to Axie Infinity.
Raible
It is considered one of the oldest NFT platforms that allows artists, creators and owners of premium digital content to buy and sell their digital assets efficiently using blockchain platforms to execute deals between seller and buyer.
Decentraland
This platform has a special feature which is its reliance on the digital assets known today as Metaverse, a word derived from the two words “meta” meaning “beyond”, and “virs” meaning universe, meaning “beyond the universe” or the imaginary and virtual world.
Most of the tokens, assets and avatars offered on this platform are fictional, and attracting a young audience, Decentraland has managed to become a major player in the NFT market with a market capitalization of over $6 billion.
Super Rare
It is a platform that supports all types of digital assets such as art, music, videos, and others, and a variety of distinctive assets gather and thanks to that, millions of dollars are traded in its market.
binance NFT platform
Binance NFT was established in June 2021, and it is affiliated with the Binance Cryptocurrency website and company, and it is the largest cryptocurrency site and platform in the world.
Via binance nft, the Ethereum blockchain and the Binance Smart Chain can be used, but the binance blockchain remains the most widely used on the platform
