How & What do you understand about NFTs !

Recently, digital collectibles have exploded in popularity because of NFTs. Youve probably seen people on social media feeds talking about NFTs.

NFTs can be confusing to understand for someone who is hearing them for the first time.

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Then whats the heck are NFTs

NFT means Non-Fungible Tokens. These are basically blockchain-based records that uniquely represent a piece of media.

We could define Token as a contract in which it is stipulated that a person owns a unique and irreplaceable copy of a digital asset, along with the asset.

Fungibility means an interchangeable item as long as it retains its original value

On the other hand, Non-Fungible is the direct opposite. It means cannot be interchangeable because it possesses a unique property or is rare.

The ownership of these assets is recorded on a blockchain. NFTs are kept in the same blockchain logs as a cryptocurrency called Ethereum.

How exactly do NFTs Work

NFTs are created or minted on a blockchain. Anything can be minted on the blockchain from an art piece, audio to gifs.

Most of the NFTs are bought and sold online with Ethereum cryptocurrency. This is because the majority of NFTs are a part of a blockchain system like Ethereum. One can say that the Ethereum blockchain itself supports NFTs.

Why are NFTs such Expensive

Anyone can view the individual imagesor even the entire collage of images online for free. So why are people willing to spend millions on something they could easily screenshot or download?

Because an NFT allows the buyer to own the original item. Not only that, it contains built-in authentication, which serves as proof of ownership. Collectors value those digital bragging rights almost more than the item itself.

Examples of NFTs

• Gaming Items - NFTs have garnered considerable interest from game developers. NFTs can provide a lot of benefits to the players. Normally, in an online game, you can buy items for your character, but thats as far as it goes. With NFTs, you can recoup your money by selling the items once youre finished with them.

• RTFKTs digital sneakers - RTFKT is making big waves in fashion. Even though the people that buy his NFT sneakers wont ever be able to wear them, theyre still willing to pay upwards of $10,000 for a pair. In the March of 2021, RTFKT sold a series of sneakers that he made with another artist called Fewociousthey managed to collect $3,1 million in sales in a matter of minutes

What you need to get started with NFTs

To interact with the marketplace, you would need to own a crypto wallet like metamask. It acts as your account, profile, and wallet in the web3 world including these marketplaces.

Conclusion

While NFTs is still a foreign concept to most of us, some of the above examples above push the boundaries of our understanding of ownership and alternative payment method. Some of them are purely marketing stunts, others truly charitable acts.

It appears that NFTs are here to stay, and its our responsibility to make an effort to understand this odd, new phenomenon.

I would love to hear your take on NFTs, was this article helpful? Do you want me to write more articles about web3? Leave a comment or ask any questions.

Originally published at melbite.com/what-do-you-understand-about-nft

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