If you belong to the creative arts’ world, you must have heard of NFTs. Ever wondered what they are and why they are known to revolutionize the creative world? If yes, we have all the answers here so hop on.
Don’t stress on being new to the NFT era, it’s a new and growing concept. But you’re at the right place if you were looking for some Explain-to-Me-Like-I’m-5 details as we’ll start from a complete basic intro.
NFTs — A Primer
NFTs stand for Non-Fungible Tokens. And by non-fungible, we mean that it’s something that cannot be exchanged or replaced with something else.
Every NFT has its own identity and authentication just like we people have our identities. Think of it as, like you have your national identity numbers, NFT identities also work in a similar way. Every NFT is unique and cannot be replaced.
If you know a bit about cryptocurrencies like Bitcoin and Ether, you must know that they are capable of being exchanged. That is because they are fungible tokens. NFTs are just the opposite.
Hope you now have a clear basic view about NFTs. Let us now have a broader understanding about NFTs and their blockchain base.
NFTs and Blockchain
A non-fungible token is basically a digital art that has its own value and authenticity, showing that it cannot be interchanged and is one of its kind.
NFTs have a base on the ever-growing blockchain and crypto technologies. A NFT can never be changed because of the security standards of cryptography that make the blockchain special. NFTs are made on a blockchain and cannot be taken into a different blockchain environment. They will continue on that blockchain and demonstrate the legitimacy of the item or asset that you’ve bought.
Apart from that, NFTs incorporate Smart Contracts as well. These are another element of blockchain innovation that are very beneficial. Basically, they can store guidelines that are executed automatically when certain conditions are met. An NFT along with a smart contract could give any artist huge benefit when the NFT is traded in future.
Why Do NFTs Have Much Value?
In February 2021, digital artist and craftsman Beeple sold the NFT for their Everydays — The First 5000 Days fine art for a faltering $69.3 million and this was when everyone saw the worth of NFTs.
Along with the uniqueness of the piece of art, basically the value of an NFT comes from the engagement of buyers and audience and how well it is greeted. Just like if everyone started using letters, email would have no value, right? Same is the case with NFTs.
To the question of ‘Are NFTs here to stay?’, the simple one-word answer is YES. It is just the beginning of NFTs era and they have come to stay. NFTs are not limited to just digital tokens, they have a lot more potential to showcase in industries like Music, Gaming and Tickets, to mention just a few.
So it can be seen that NFTs are an emerging crypto market trend and have the potential to grow enormously in the near future.
And it’s obvious now that NFTs are one of a kind and collectable. So if you’re excited by gathering something novel or uncommon. NFTs give an additional layer of authenticity to collectable substances, especially as advanced or digital resources.