Unless you have been living under a rock for the last three months, you probably have heard about NFTs. If not, NFT is short for nonfungible tokens. Basically, it can be anything, a GIF, a tweet, and even a Meme. You still must be wondering what exactly are they. Well, consider an NFT token a digital asset that is costly but has a considerably high rate of return. Kind of like cryptocurrency, though they have their differences.
Today, Time Magazine has plans to launch nearly 4500 NFTs from over 40 artists. Also, Tiger Woods has announced to sell his digital autographed collectible NFTs. If you’re wondering about buying one of those NFTs, the initial price is quite affordable.
However, such collectibles create a massive online bidding war that could force the price to skyrocket. The popularity has developed a digital market that earned about $250 million in sales in 2020. Not to mention having attained interests in Visa, Warner Music Group, and Nike.
If you’re unable to grasp a lot of this, join the club. To spell it all out, NFTs provide a blockchain-created certificate of authenticity for any digital asset. Still can’t figure it out, don’t worry. Here’s all about NFTs that you need to know.
What’s an NFT?
This is the part that takes a bit of open-mindedness. An NFT is a unique digital token, with most using the Ethereum blockchain to record transactions digitally. It’s not a cryptocurrency like Bitcoin or Ethereum because those are fungible — exchangeable for another Bitcoin or cash. NFTs are recorded in a digital ledger in the same way as cryptocurrency, so there’s a listing of who owns each one.
What makes an NFT unique is the digital asset tied to the token. This can be an image, video, tweet, or piece of music that’s uploaded to a marketplace, which creates the NFT to be sold.