NFT art could be a new way to spend and make money.
You’ve probably heard of NFTs, short for non-fungible tokens. But what exactly are they? It is a new type of digital asset that is similar to cryptocurrency and that can cost you a lot of money. The madness started in 2017, and since then, Twitters have Jack Dorsey, rock legends Kings of Leon, and even Tiger Woods selling NFTs for a pretty penny (more below).
But what exactly are you buying when you buy an NFT? It’s not a collector’s item to keep in your dresser drawer like, a comic or painting. They are completely digital and tied to almost everything – a .
for you, well, you are not alone.
In short, NFTs provide a blockchain-created certificate of authenticity for a digital asset or work of art. Interest has created a digital marketplace with sales of $ 250 million in 2020, with NFTs from Visa, Warner Music Group and Nike reaching new levels of hype. Evenare on the latest wave of cryptocurrency. Still Confused? We’re going to break down what NFTs really are, how much they cost, and how you can take part in the latest bidding wars.
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Everything you can about NFT. need to know
What is an NFT?
This is the part that requires a little open-mindedness. An NFT is a unique digital token, with most being theBlockchain to digitally record transactions. It is not a cryptocurrency like Bitcoin or Ethereum, because these are fungible – exchangeable for another Bitcoin or cash. NFTs are recorded in a digital ledger in the same way as cryptocurrencies, so there is a list of owners.
What makes an NFT unique is the digital asset that is tied to the token. This could be an image, video, tweet, or piece of music uploaded to a marketplace, creating the NFT for sale.
If I own an NFT, do I own the asset?
This is the real kick to understanding the whole concept. The person buying the NFT does not own the actual asset.
“NFTs challenge the idea of ownership: digital files can be reproduced indefinitely, and you (usually) don’t buy the copyright or license when you buy an NFT,” said Jeffrey Thompson, associate professor at Stevens Institute of Technology in Hoboken, New Jersey .
The band Kings of Leon sold their latest album through NFTs, making more than $ 2 million in sales.
For example the creator of thesold an NFT of it for $ 590,000. The person who bought the token owns the token but not the meme. That still belongs to the Creator, who had intellectual and creative rights.
What the owner of the token owns is a record and hash code that shows ownership of the unique token associated with the particular digital asset. People can download Nyan Cat and use it on social media if they want, but they don’t own the token. This also means that they cannot sell the token like the owner does.
Why are NFTs so expensive?
As with physical collectibles like beanie babies, baseball cards, and toys, there is a market for NFTs. The buyers are usually tech-savvy people who understand the idea of buying digital goods and have likely committed murder using cryptocurrencies in the past year. Ethereum, for example, jumped from just over $ 100 last March to a current price of around $ 3,400. In some cases, buyers only use their digital wallets to show how much crypto they have, but for others there is a deeper interest.
“Especially for art-related NFTs, there is an enormous surge in demand due to their novelty and creativity of the early artists,” said Jason Lau, chief operating officer of the crypto exchange OKCoin, in an email. “Whether it’s a physical work with an NFT attached (think a digital autograph and proof of veracity) or a fully digital work (where the NFT is the art), this new medium opens up new avenues for collectors and artists to explore their relationship with the artwork itself. “
That is also great for the artists, says Lau. By selling digital art directly to interested parties, an artist can start monetizing their works without having to try to sell them in a gallery.
What kind of NFTs can I buy?
NFTs can be linked to any digital asset. Anything you see online can be an NFT – music, social media posts, clip art, and more. Today Sorare released its “Super Rare” Lionel Messi digital trading card, which is currently priced at € 29,992.75, which is over $ 35,000. Sorare also announced that it has raised $ 680 million for its next-level sports fantasy game. The funding is currently being managed by SoftBank.
And today, Tiger Woods will be selling thousands of digital collectibles on Autograph in the DraftKings marketplace. The second collection will hit the market on September 28th. Autograph is co-founded by Tom Brady, another athlete in the NFT market.
But NFTs go way beyond sports. Recently, Fortune gave its readers a chance to jump into the NFT frenzy. The company sold 256 copies of the limited cover by graphic artist Pplpleasr for Fortunes August / September magazine on OpenSea. The copies were sold out in five minutes from USD 1 Etherum (estimated USD 3,000). But the NFTs were available for resale at three times the cost.
And in August, clip art of a rock better known as Ether Rock sold for $ 400,000 of Etherum (an estimated $ 1.3 million). Two weeks ago it was worth $ 97,716. And in August, Visa announced the purchase of NFT CryptoPunks for $ 150,000 in Ethereum. The finance giant believes NFTs play a huge role in “the future of retail, social media, entertainment and commerce”. And Vines co-creator Dom Hoffman is reportedly inventing a new way to gamify NFTs with his fantasy game console Supdive.
As the hype surrounding NFTs grows, you can expect more digital assets to come up for sale and make big bucks.
Where can I buy or sell an NFT?
While you might not want to place six-figure bids right away, there are several NFT marketplaces to try, with Opensea being the largest. Buyers can search for art, domain names, and random collectibles to bid on without breaking the bank. And the Woods digital collection is one of the many NFT collections available on the DraftKings marketplace, including the Tony Hawk collection.
On the other hand, if you want to sell an NFT of your kind, you can use NFTify, the Shopify NFT Store, to sell NFTs without creating your own shop. You also need a MetaMask account to get started. And Burberry recently announced a partnership with Mythical Games to gamify buying, selling, and collecting toys as NFTs through the blank block party game. CNET’s Chris Parker also created a step-by-step guide on how to make and sell your own NFT in the video below.
What are the disadvantages of NFTs?
One downside is the hundreds of dollars in fees that are required to create an NFT. Creating your own token on the Ethereum blockchain means using some Ethereum which, as mentioned, is quite expensive. Then, after you do an NFT, there is a “gas” fee that pays for the work put into processing the transaction, which is also based on the price of Ethereum. Marketplaces simplify the process by doing it all for a fee when selling an NFT.
There are also environmental costs. Like Bitcoin, Ethereum requires computers to do the calculations known as “mining” and these computing tasks require a great deal of energy. An analysis by the University of Cambridge found that mining Bitcoin uses more energy than the entire country of Argentina. Ethereum ranks second after Bitcoin, and its electricity consumption is increasing and is comparable to the amount of energy consumed by Libya.
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