You Should Learn About NFT's Here's Why

If you Follow the news about Crypto-currency you probably might hear about NFT which took over the whole market in just a few days. But what actually is NFT and why everyone wants to invest a lot of money in it. Let's Solve all our doubts about this.

What is NFT?

                Let's get this straight by asking what is NFT. An NFT or Non-Fungible Token is alike certificate or authentication that you own something in the blockchain. It's not a real-world entity like gold or currency. It is a Digital or virtual asset just like other cryptocurrencies. But there is something which makes it different from other things, for that we need to know the meaning of the name.

                Fungible means that if you give a thing you can get the same thing in return in some exchange, for example, if you transact something in the cryptocurrency you will again get the same cryptocurrency which means the exchange item and the item you exchanging are both same. But in the case of Non-Fungible things they are unique and cannot be exchanged with the same as they are only 1 in the whole world. In simple words, we can also understand things by thinking as we are collecting some unique entities which only you have and no one else has a simple example of this can be the Monalisa painting, there is only one piece of this in the whole. The token can be anything it can be a painting, artwork, or any Unique digital asset. Many projects are going on in NFT that makes Artworks that are unique and nearly sell for thousands of dollars. By the way, the point to be noted here is NFT can only be bought or sold with Ethereum. But you might get a doubt here, why I want to buy artwork of such a high price can't I just save the image on my computer by right-clicking and downloading the image? Let's answer this question.

The above picture is from a project called Party Ape Billionaire Club which was marketed in OpenSea.

                Here's where another Feature of NFT comes into the picture. As we talked about earlier, they are unique so there is how the proof of ownership is maintained. That is also done by blockchain, and we all know how hard is to manipulate data inside a blockchain, NFT can use any blockchain technology but as we are transacting using Ethereum it uses the Ethereum Blockchain network. All the NFT's are stored in the Blockchain with their Unique Identification Code and the details of their owner. These tokens can be sold or traded using Etherum. But there is actually a lot going here other than just trading and selling.

How to Trade and Sell NFT's

                I guess this is the question for which you all are reading this article. There are many ways you can earn an NFT and sell it. The best way to do this is going to the NFT marketplace, all the available tokens can be bought in there. It is a place where all the projects will be available and marketed. There are a few terms you need to know before actually buying the tokens.

                First of all, apart from the marketplace, there are also a few places where you can buy NFT at a cheaper price and literally 1/10th of the original price which will be kept in the marketplace. And this is called Minting, it is nothing but buying the tokens even before they get to the market, but how?. Before launching a Token by a project they actually publish the token on other platforms and on their own website where they do an auction kind of thing from which you can buy tokens. You might also get some discord invitation from a random guy who wants you to join their NFT server, this is all part of the publicity.

                And the community matters a lot in this token. If there is a good amount of people who are willing to buy the token then eventually the price will skyrocket, there are also a few other parameters on which the price of the NFT can increase, one of the major being the history of the token like who created the token is it some big famous artist or a just ordinary guy, Who owns this NFT earlier, etc. One more factor is the Rarity of the token, we know that they are unique but there are some things which can be seen in other artworks also, for example, same hairstyle or same glasses, etc, there is a rarity score for each NFT which tells how rare the token from others.

What's the Future of NFT?

                There is actually a lot of future of NFT. It is like a digital collection of very rare items. One more major thing which can determine the future of it is that it can be used in-game as skin or character. In other words, if you have skin in some game that most people don't have then you can really sell it for Ethereum, and can also buy other skins using it. You can play with characters which you own like one of the Apes which is shown above.

                It's also bringing some trends like everything in the future will have a unique identity which is like proof of ownership. Painting, artwork, skin, or any digital asset can be considered as an NFT, which can be traded with other tokens. But most of the people invest in this expecting the price of this will skyrocket in the future due to their rarity, that's the main motivation how this technology is being run and sustained.