If you have been in the crypto space for some time now, you must have heard about NFT or even of you are not in the crypto space, you must have come across NFT on social media or from individuals. NFT has gain some grounds over the past months and has seen the likes of billionaires and celebrities getting into it. We see Elon Musk, Snoop dog, Eminem, Jack Dorsey and many other renowned figures talking about NFT. Now what is NFT you may ask yourself. Here at The blockchain project, we aim at giving you information in it’s most simplest form. Taking away all the crypto, technology and blockchain technologies that may give you a hard time to understand, here is what NFT is all about.
What are NFTs?
NFT means Non Fungible Tokens and they are units of data stored digitally that can be sold and traded. This data can be photo, video or audio file. They are build on thesame technology as cryptocurrencies but they are not cryptocurrencies. Cryptocurrencies are fungible, meaning they can be exchange for one another just like trade by batter but NFTs are said to be non fungible so they can not be exchange for each other. Meaning you can not exchange one NFT for another NFT just like you can trade Bitcoin or Ethereum. NFT represents a real world assets just like Art works, real estate, clips and so on.
Where are NFTs found?
You can’t just see NFTs anywhere or on any kind of website or social media. Just as Art works are found in the museum, NFTs are also similar. They are oftern found on NFT Marketplace place, this is where NFT can be mint, listed, and sold. So you can buy, sell and trade NFT on the NFT Marketplace. They are different Marketplace for NFT with the most popular being Opensea and Binance NFT Marketplace. OpenSea is an online marketplace that allows users to purchase, sell, and trade NFTs. Users can transact a variety of different digital collectibles, including art, music, domain names, trading cards, and dozens more. Meanwhile Binance NFT Marketplace brings together artists, creators, and crypto enthusiasts on a single platform to create and trade top NFTs. Just as you need an account to interact with a bank, you will need an account for NFT Marketplace, you can create a free Binance account HERE and start trading NFT today.
How does NFT works
Basically, NFTs are like physical collector’s items, only digital. So instead of getting an actual oil painting to hang on the wall of your building, the buyer gets a digital file instead. They also get exclusive ownership rights. That’s right: NFTs can have only one owner at a time. You can buy them at a fix price or for an auction bid where the highest bidder wins.
Why get into NFT
Now this is the main question that many people ask. Why would anyone buy an NFT? It’s just like a group of crazy people, using thousands of dollars to buy some nonsense jpeg file like a rock, an ape and many more. Well many people have different motive of going into NFT. Just like cryptocurrency, NFT values do rise and fall. Some people might get in to make profit, which means they buy low and sell high. Others are just lovers of art and are naturally collectors, so they collect art pieces in the form of NFTs. Others go in because of the technology and thinks it promises a type of special future especially with the advent of Web3 and blockchain technology. Well others don’t just understand what’s going on in the space but they don’t want to miss out and so they jump un anyways.
NFTs can and has made people become millionaires overnight but similarly, has drained away the life savings of many. The cryptocurrency and blockchain industry is a very risky, volatile and unpredictable market with many propaganda and some folks using different types of schemes to profit off from others.
Conclusion and final advice
From the above explanation, you are sure to have some basics knowledge now about NFT and not what the social media streams have been selling you. From here you can make your decision on which road to take but what we have to tell you is, in whatever road you take, Do Your Own Research. Do not follow the crowd or here from celebrities shilling some projects to you. They’re exist a lot of scam and fraud within the cryptocurrency and NFT. Be very careful with the sites you visit and the people you get involved with and only invest what you can afford to risk.
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