What is NFT?

An NFT (Non-Fungible Token, or non-fungible token) is understood as a digital asset, representing entities such as music, art, paintings, videos, game items, etc. In essence, the NFT represents a piece of code that contains a digital ownership certificate. They are traded online in cryptocurrencies.

NFTs are proprietary and they are not interchangeable. such as rare Pokemon coins or a pair of limited edition Jordans. It can be said that the NFT has created a scarcity within the infinite human entities. Even so, NFT is verified in many different ways to demonstrate its “uniqueness”.

Internet users can find and download products from NFT at no cost. However, only the owner is allowed to sell that product file. NFTs can be offered for public sale without intermediaries. This is in stark contrast to art in traditional galleries, which keep prices private.

Products from NFT

NFTs are created as a representation of digital or non-digital assets, such as:

• Digital artworks: GIFs, collectibles, videos, music, etc.

• Real-world products: car deeds, encrypted invoices, documents, event tickets, etc.

• And many other entities depend on the creativity of the developer.

In fact, NFTs are essentially like physical works of art in a gallery. The only difference is that they exist in digital form. This means that instead of buying the Mona Lisa oil painting to hang on the wall, you will receive a digital file.

NFT’s Proprietary Possibility

An NFT can only be owned by one person at a time. This ownership is managed by uniqueID and metadata that no token can copy.

Smart Contracts create NFTs and assign ownership and manage their transferability. When someone mints NFT, they execute the code stored in Smart Contracts according to different standards, like ERC-721. This data will be added to the blockchain where the NFT is being managed. The NFT casting process will go through 3 stages:

• Stage 1: Establish a new block.

• Stage 2: Confirm information.

• Stage 3: Update Blockchain information.

How expensive is NFT?

The year 2022 is considered the “golden” period of the NFT trend. After auction house, Christie’s sold its first NFT artwork-a collage by digital artist Beeple for $69.3 million-NFT suddenly caught the world’s attention.

For people working in the arts, NFT is like a “galaxy” of profits. Some of the artists’ NFT works have attracted millions of dollars, such as:

• Jack Dorsey’s first tweet sold for $2.9 million.

• A video clip of a LeBron James jumps sold for $200,000.

• A “Nyan Cat” GIF image from more than a decade ago has sold for $600,000.

So, why would anyone spend millions of dollars to acquire something that they can easily capture or download?

Because NFT allows them to own “unique” items, in addition, they contain built-in authentication, which serves as proof of ownership. Collectors value an item’s “uniqueness” more than its essence. Because of this, the “NFT race” of the “big guys” officially kicked off.

How does NTF work?

Unlike ERC-20, NFT is an independent, unique, and indivisible token. Most NFTs are set up and hosted on the Ethereum platform, although other blockchains (like Tezos or Flow) also support them.

The reason is that anyone can access the blockchain. This makes it easy for NFT ownership to be compromised and impersonated. while the majority of individuals or organizations that own NFTs only use pseudonyms.

The Characteristic properties of NFT

NFT and identifying features

• Each NFT coin generated has a unique identifier that is directly linked to an Ethereum address.

• NFT is not swappable with other tokens.

• This data is always verified.

• NFT exists on the Ethereum platform. Users can trade NFT on any crypto market that runs on Ethereum.

What are the advantages of owning an NFT?

When you own NFTs, you can easily prove you own them. If purchasing NFT, ownership of this unique token will be transferred to your wallet via your public address. The token will help verify that your digital file is original.

Besides, there are a number of other factors that help you verify your NFT coin, such as:

• The private key helps you to prove ownership of the original.

• The public key is an authentic certificate for a digital product.

• A digital signature helps to prove you own the private key after the link address.

In addition, NFT holders also have guaranteed privileges such as:

• It is allowed to resell NFT to earn a profit from the original creator’s copyright.

• No one can manipulate your NFT.

• Assets will be secured by your wallet on Ethereum.

Want to buy NFT? Where to start?

To build your own NFT collection, you need to prepare some necessary items in advance, such as a digital wallet to store NFT and cryptocurrencies. You need to buy some cryptocurrency based on the required currency that the NFT approves, such as Ether.

To buy cryptocurrency, you can use a credit card on platforms like Coinbase, eToro, Kraken, or even PayPal or Robinhood. After that, you need to proceed to transfer funds from the exchange to the wallet of your choice.

Some popular NFT markets

After setting up and “funding” your wallet, your next step is to search for NFT sites to start shopping.

OpenSea.io

OpenSea.io is an exchange specializing in the trading of NFTs. Here, you can exchange, buy, sell, and collect NFTs; game characters or items; artwork; music videos; etc.

The design of OpenSea.io is almost responsive to current market trends and needs. Besides, this exchange also creates a large source of liquidity for the huge number of NFTs in crypto and non-crypto.

Rarible

Similar to OpenSea.io, Rarible is an open, DeFi marketplace. This exchange allows artists and creators to issue and sell NFTs. Rarible was one of the early NFT exchanges, attracting a large number of investors.

Normally, NFT transactions will be done through ETH. However, Rarible has developed a community of its own by releasing the RARI token.

Foundation

The NFT exchange will be extremely suitable for “newbies” who want to experience the cryptocurrency market. Normally, NFT exchanges are quite complicated when first used. However, coming to the Foundation, the initial difficulties will be resolved.

The Foundation provides a simple and easy-to-use platform. This exchange optimizes the user interface. From there, you can experience bidding on digital artwork.

With its “unique” characteristics, NFT is becoming the “storm center” in the global market. In the not-too-distant future, NFT coins have a lot of potential to grow and become the leading “leader” of the cryptocurrency “world”.

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