NFT, What’s All The Buzz?

Non-fungible Token (NFT) is a cryptographic asset on a blockchain with a unique identification code and metadata that distinguishes itself from other items on the same blockchain. Yes, you may need to Google a few of those terms.

NFTs can be created by anyone, and one does not need to have any special technical skills to create them. NFTs typically refer to digital files of photos, videos, and audio.

The NFT market grew dramatically from 2020–2021: the trading of NFTs in 2021 increased to more than $17 billion, up by 21,000% over 2020’s total of $82 million – Wikipedia

Having an NFT allows the buyer to own the original item in its digital form, as it would be a single unique item. The built-in authentication serves as proof of ownership, which for collectors offers more value in having ownership rights than the value of the item itself.

How do NFT’s work?

A non-fungible token is a unique digital identifier that cannot be copied, substituted, or subdivided, that is recorded in a blockchain, and that is used to certify authenticity and ownership. If you have heard of cryptocurrencies you have heard of blockchain. Just swap out the crypto coins for digital images, video etc…and make each item on the network unique. Now you have an NFT.

Among the many use cases, they can be used as an ideal method to digitally represent physical assets like real estate and artwork. Since they are based on blockchain technology, NFTs can remove middlemen and connect artists with audiences or even as a form of identity management.

Popular NFT Marketplaces

Here’s a few marketplaces you can use your cryptocurrency wallet to purchase NFT’s from:

•  OpenSea.io: This platform calls itself a marketplace of “rare digital items and collectibles.” You can browse the NFT collections after creating an account. Discover popular and new artists based on their sale volume and more.

•  Rarible: Rarible is another marketplace for artists and creators.

•  Foundation: A more elite marketplace than most, as artists must receive votes from the community in order to post their art. The exclusivity gives it an edge over the other marketplaces as the work tends to be of higher quality. This also equates to higher prices.

NFT’s in the Mainstream

Movies, books, music, games…almost anything can be converted into an NFT. One of the platforms that’s working on changing how we consume it is GameStop with their NFT Marketplace (so far U.S only). They are still in beta though, but the buzz around their offering seems to include more than just the above. Time will tell once they reveal it for the world.

As most with new tech creations, services and fads it all depends on whether people use it in their daily life. So far the use cases are mostly geared towards collecting and owning something that is scarce. But once everyone on the planet gets exposed to the concept, and it becomes easy enough to purchase and own an NFT, only then will it become mainstream enough.

I fully expect governments to start making up NFT centered laws too, because why else do we vote them into power?

Here’s a video that hopefully explains NFT’s in more depth: https://www.youtube.com/watch?v=H3TABd_nBJU

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