NFT

What is NFT, and How Does It Work?

NFT NON-FUNGIBLE-TOKEN

An NFT or Non-Fungible token is a digital asset stored on a blockchain. You can duplicate thousands of the same image. Each image will have a unique identity on the blockchain.

Beginner’s Guide to Invest in Non-Fungible Tokens
Imagine earning millions of dollars from a sentence you flippantly typed? Twitter’s CEO, Jack Dorsey, sold his first tweet for $2.9 million United States dollars as an NFT.

The tweet was “just setting up my twtrr.” The Davies-Carr brothers sold their ‘Charlie bit my finger’ video as NFT in May for $500,000. In total, investors have sold 123 pounds in NFTs since 2017.

An NFT or Non-Fungible token is a digital asset stored on a blockchain. You can duplicate thousands of the same image. Each image will have a unique identity on the blockchain. So several people can have similar-looking photos attached to each one.

Can you sell screenshots of expensive NFT art? No, you can’t—each minted NFT art exists in a blockchain. Once bought, the seller transfers the token to their wallet (most people prefer Ethereum). They also have exclusive rights to the license.

Kevin Mc Coy created the first non fungible tokens called ‘Quantum’ on the 3rd of May 2014. Coy minted the artwork long before NFT gained popularity. The art piece currently sells for seven million US dollars.

NFT
  • The non-fungibility of a piece of NFT art means that you can not exchange it like you would bitcoins. You simply buy or sell them.
  • What Qualifies for NFT
  • Anything can be an NFT art, provided you have exclusive rights to it—pictures on your phone, music, memes, artwork, etc. The worth of the painting depends on the popularity or the fame of its owner.

For instance, the artwork of Leonardo da Vinci will hold more value than yours when you put it on sale. But if you created a meme that has gone viral globally, you can earn a lot from minting it into an NFT and selling it. The Mona Lisa’s painting will also have excellent NFT value.

Jack Dorsey’s first tweet has so much value because of his popularity and the uniqueness of the tweet.

  • Generally, the first of anything popular would have a high value in the NFT market. The first meme, artwork, etc.
  • What are the Most Expensive NFTs Sold?
  • Here are the most expensive NFT arts. Solana Monkey Business (SMB), #1355, sold for $2.1 million United States dollars, the most costly SMB collection. Next is Meetbit #10761 at $2.78 million. Next is #8817 of the bored ape collection.

The price was 3.14 million united states dollars. The price for doge was $4 million. Investors sold this nonfungible token in June 2021.

The price for the replicator NFT was $4.1 million. As its name suggests, this artwork automatically reproduces itself every 28 days.

CryptoPunk is one of the most common nonfungible tokens out there. The price for #2338 was $4.32 million.

Noora created the ‘Save Thousands of Lives’ NFT to raise funds. They created the NFT on May 3, 2021, and sold it for $4.5 million united states dollars a few days later.

‘This changed everything’ was an artistic design of the source code for the earliest web version. The owner sold this NFT for $5.4 million.

  • ‘Stay Free’ is another expensive nonfungible token that went for $5.4 million. The cost of CryptoPunk #5217 was $5.45 million.
  • At $91.8 million, the Merge is the most expensive NFT globally.
  • How to Create an NFT from Scratch
  • To create one, you need a crypto wallet. Ethereum is the most popular nonfungible token choice.
  • But you can use any payment option. NFT Deposit some coins and select your preferred NFT marketplace. Here are some trusted marketplaces.
  • OpenSea: This NFT market is famous for its digital asset varieties. It’s free to join. And if you want to mint anything, it’s easy. They also support over 150 payment tokens making transactions easier.
  • Larva Labs: Known for their famous CryptoPunk collection, larva lab is an excellent choice if you’re thinking of minting nonfungible tokens. They gave out their first set of CryptoPunks in 2017.
  • NBA Top Shot Marketplace: You’ll find shots of different NBA basketball players in this marketplace.
  • Rarible Marketplace: This marketplace is similar to OpenSeas. In Rarible, you can buy or sell different things for printing (videos, art, music). Rarible uses its unique token called rarible. Unlike OpenSea, you can’t use any other.
  • How is NFT related to Cryptocurrency?
  • NFT uses similar programming as cryptocurrency. While cryptocurrencies and fiat currencies are fungible, NFT is not. Fungibility means that you can trade or exchange it.
  • How do you know an NFT is Authentic?
  • Choosing the right platform is the ultimate way of verifying the authenticity of your NFT.

Most platforms prove the collections they receive from artists. Additionally, you can search the image on Google to check if it is genuine.

Upload the image via Google’s image search feature or paste the image link. Fake NFTs do not come from their copyright owners.

So one way of knowing that it’s genuine is by checking their social media profiles. Find out if they mentioned anything about selling their nonfungible tokens.

  • Check if the same NFT is on multiple platforms. That’s a sign of fraud.
  • Compare the value of the NFT to its price. If the price is too low, it might be fake.
  • Is it Safe to Buy NFT?
  • Buying non fungible tokens from the right platforms is safe.

There are several: OpenSea, LarvaLabs, Rarible Marketplace, etc.

While you buy, be careful not to share your wallet details with scammers with shady drops.

Don’t share your private keys with anyone. Don’t accept free non-fungible tokens from unknown sources.
Can You Mint NFT For Free?
Yes, you can. To do this, link your Ethereum wallet with your OpenSea account. Next, create an OpenSea collection from the dashboard.

Afterward, choose your preferred blockchain (the polygon blockchain is free).

Start the minting process by clicking on ‘collection’ and ‘add items.’ The minimum price for your NFT must be $2.

NFT Non-Fungible Tokens

Summary
NFT means Non-fungible tokens. You can mint anything into this virtual asset if you have exclusive copyrights to them.

There are several pricey NFTs but the most expensive one is the Merge at $91.8 million. To create one from scratch, you need an Ethereum wallet and an NFT market like OpenSea.

Verify your non-fungible token’s authenticity by selecting the right transaction platform. You may also use the google image search.

What’s your favorite NFT art? Tell us in the comment section.