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What Is a Non-Fungible Token (NFT)

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Lately, one topic has been on everyone’s lips: the art of NFT . What it is? How it works? Why did this become a topic of discussion? If you are here, chances are you are asking yourself these (and many more) questions.

You have come to the right place: in this article, I will try to dispel all your doubts about non-playable tokensI’d say let’s get started if you like, so sit back and get ready to learn all about this world.

What does NFT stand for

NFT is an acronym that stands for non-fungible tokens. If that doesn’t help you understand the meaning of NTF, let me explain a little more: NFT are cryptographic tokens that are not fungible with each other, which distinguishes them from cryptocurrencies, which are fungible.

Take bitcoin for example: exchange one for another, and in the end you get exactly the same result. Or, to give an even more specific example, think about money: what happens if you exchange one € 10 bill for two € 5 bills or five € 2 coins? Namely, you get the same amount. In contrast, NTFs are unique digital assets that can be bought and sold like any other property, with the only difference that they have no tangible form.

Application of NFT Non-Fungible Token

Non-existent tokens can have a wide variety of uses. Nike received a patent for a blockchain-based digital sneaker called “CryptoKicks ” and the Kings of Leon released their first music album, sold through NTF in March 2021.

Despite its limitless potential, NFT is primarily used in the digital arts sector , at least for the time being. How did it happen? Read on to find out.

NFT in art

Digital art has a big problem that seemed impossible to solve before the advent of NFT: it is easily reproducible . In other words, digital art can be massively replicated and distributed illegally over the Internet. With the help of NTF, this situation has been resolved as digital art works are converted into tokens and accompanied by a real certificate of ownership and authenticity that can be bought and sold.

NFT-non-fungible tokens
NFT-non-fungible tokens
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If you are wondering how much NFTs are worth, the answer is: it depends on the situation. In theory, anyone – even you! – you can take one of your works of art, make a non-volatile token out of it and see if anyone is interested in buying it. However, there are cases when NTF were sold for incredible sums of money. Are you curious about some examples?

Notable examples

The first NFT to make a splash was the animation of the famous Nyan Cat meme (an 8-bit gif of a flying cat leaving a rainbow behind it), which sold for over $ 500,000 on February 19, 2021.

If that sounds like a lot, wait until you hear the following story: A few weeks after the sale of Nyan Cat, musician Grimes auctioned several of his digital works for a total of $ 6 million .

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Another very curious case concerns the sale of the first ever posted tweet , sold under the name NFT by Twitter founder Jack Dorsey. Profit? $ 2.5 million .

Finally, the artist Beeple, whose real name is Mike Winkelmann, set a real record, taking home about $ 69 million . Beeple is a graphic designer who has been creating a digital work of art every day since 2007; through NFT, he sold the first 13 years of his work, that is, 5,000 works.

NFT and metavers

A few days ago, Facebook CEO Mark Zuckerberg announced the birth of the metaverse, a kind of digital universe in which the real and the virtual merge together. How does this relate to NTF? This has a lot to do with it!

Meta is the new name of Facebook Inc. – will support NFT . More details will be released in the coming months as the project begins to take shape (i.e. develop).

Is it worth investing in NFT?

Is it worth investing in this type of digital art? This is a high-risk investment (use only those funds that you can afford to lose), which only in very rare cases brings significant returns; however, if you’re curious, give it a try (with care, keep in mind). Create your own digital wallet and play the fantastic OpenSea game.


 

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