What Are NFT's?
I know! I know! you must have been seeing everyone on the internet trying to either sell these or school you guys with big jargon. Don't worry, I'll tell you what NFT's are in the simplest way possible.
NFT(Non-Fungible Tokens), the name signifies that these are unique, irreplaceable, fully digital, and protected. Tokens are something that holds value and can be used for trading, they are like an asset that exists independently on the blockchain. NFT was first launched by the Ethereum platform, and now many others have supported them.
Let's clear out a common misconception, NFT's are not just digital artworks!
NFT's can be used to convert digital artwork, digital collectibles into tokens, which can be sold like normal paintings. This will allow you to own the original version and they can benefit from it whenever the NFT is sold again. So, as a buyer when you buy paint as an NFT, you are not buying the physical painting but you buying the ownership of the painting.
This has allowed many artists, musicians, and many independent creators have been benefiting from NFT's. When an artist or a creator tokenizes their artwork the trading becomes more efficient and this also reduces the probability of fraud.NFT also helps in removing the middlemen and connects the creators directly to the audience. As we already know, these tokens are non-fungible, meaning you cannot exchange one NFT for another like we exchange bitcoins or ethers, because the values of each NFT differ.
NFT's are non-interchangeable units of data that are stored on a distributed ledger that uses blockchain technology and the ownership can be decided. The NFT contains extra information that makes it unique and differentiates it from normal currency. Now there are some replicas of the same NFT's on the internet but their cost is lesser than the original, they usually sold as "first copy". The NFT's have a license that indicates which artwork it refers to and where does it exist on the internet, so whenever someone sells it the owner can get the royalties.
How to create an NFT?
Well, it is very simple all you need is your digital artwork, a digital wallet, a small purchase of Ethers
, and an NFT marketplace platform where you can turn your artwork into an NFT.
How to sell an NFT?
There are specified market platforms where you can upload your content and convert them into an NFT. The price is decided by the market value, but you can suggest the pricing, add some description and other specifics. Most of the people buy using Ethereum but sometimes bit cash, WAX, FLOW, and other ERC-20 tokens are also used.
How to buy an NFT?
You can visit NFT marketplaces, like Opensea, Axie Marketplace, Cryptopunks, etc. Here many NFT's are listed and their prices are also mentioned which usually includes gas fees(the fees required to complete the transaction, which rises and falls depending on how busy the network is), sometimes it might include costs for converting into dollars, or sometimes it is only the gas fees and artist don't charge any fees from themselves. You should always evaluate the price before buying. The prices are decided on the basis of demand, and there is an auction, the highest bidder gets the NFT. You also need to check if you have an Ethereum compatible wallet and some ethers (PS: make sure u have a little extra to cover the gas fees!). Once the transaction is complete you can access your NFT through the crypto wallet, until u decide to sell it.
I hope you have all the tea about the NFT's. We have tried to explain what are NFT's in simple words and we have tried to simplify the functioning and trading as well. So, next time someone tries to school you on these non-fungible tokens make sure you hit them with facts!