NFTs are one-of-a-kind assets that prove digital ownership of something associated with the token. This can be an image, an audio track, a video, or a domain name, among other things. The Ethereum blockchain is the most popular network for creating and selling NFTs, and it is home to some of the most popular NFTs ever created.
For artists, the NFT revolution is a source of hope. They can now show their work and possibly sell it to collectors all over the world. Graphic designers, painters, and musicians should learn about NFTs, create NFTs, and sell their digital artworks on NFT marketplaces.
What exactly do you get with an NFT?
What distinguishes NFTs from fungible tokens? Fungible tokens can be exchanged for one another; 1 BTC equals another unit of BTC. You get a digital file for your money with NFTs, but this token represents your ownership of the digital asset and cannot be exchanged for another NFT.
NFTs aren’t just for digital artworks. Rather, anything, including cinema tickets, music albums, and digital assets on the blockchain of games, can be an NFT (e.g., Illuvium or Plant vs. Undead). Almost any real item can be tokenized and stored in a wallet as a digital asset.
The price of an NFT, like that of cryptocurrencies, is determined by supply and demand. The most well-liked places to buy NFT are on specialized platforms called NFT marketplaces such as OpenSea, Rarible and Mintable to name a few. If you have already invested in cryptocurrencies, investing in NFTs will not be difficult for you. The general buying process is not all that different from other types of crypto assets.
What makes them so valuable?
While NFTs have no inherent value, their worth is based on the company or artist who creates them. Non-fungible tokens, like cryptocurrencies, are only worth what individuals are prepared to pay for them.
For example, digital art NFTs are currently trending, with the most prominent selling for several million dollars. One of Christie’s Arthouse’s most expensive NFTs sold for an incredible $69.3 million in 2021. The artwork is a digital montage created by artist Mike Winkelmann (aka Beeple) over a 13-year period. Beeple created an artwork digitally every day for 5,000 days, which was then assembled into this piece.
However, not all NFTs are works of digital art. In 2019, the NBA began working with Dapper Labs on a program called NBA Top Shot, which will sell NBA’s greatest moments as NFTs. These short videos are available to fans as NFTs trading cards. A LeBron James showcase recently sold for $210,000, but more common cards can be found for less than $10.
However, not all NFTs are equally valuable, and inventors should thoroughly research the NFT and the community that supports it before making a purchase.