What are NFTs? and How they Create Value
NFT buzzword proves that the digital currency revolution is not limited to the world of Bitcoin and trading platforms, but the world of art and sports are also two areas that have been positively affected by the digital gold revolution, and the dynamism of the spread of blockchain technology. So, what are NFTs? and how do they create value?
The term NFT is growing up and has a big interest more and more. The blockchain NFTs are based on the Ethereum blockchain and its currency.
Through this article, we will explore the possibilities available to know more about NFTs meaning, how to buy and sell NFTs, through specialized platforms, in a market valued with more than 4 billion dollars.
What are NFTs?
Simply, the NFTs or Non-Fungible Tokens are unique digital assets or commodities that have value and can be bought and sold for cryptocurrency. The ownership of these assets is managed and tracked by the blockchain of Ethereum (ETH).
You cannot duplicate or split these items. Digital painting, pieces of music or electronic games are examples of digital assets that can be converted into NFT.
For instance, the NFT owned by a Person called X cannot be the same as the NFT owned by anyone in the world, and once you own it, it will not be stolen or lost.
When did the NFT appear?
It all started in April of 2019, when Coingecko platform announced its interest in NFTs, and that it would offer a custom NFT list through the Blockchain.
In the same context, we find that NFTs are being developed across many industries and applications, including those that are now found in the gaming industry and artwork.
How to make or create NFTs?
After knowing what are NFTs, know we are going to know that creating an NFT is not difficult at all and it can reach millions of dollars with a unique NFT as an image or GIF file can be created in any way. The user has to choose the format First – it can be text, music or video, and the more unique the better.
Once you pick up what you want for sale, you need to know about the blockchain technology you want to use or simply the digital currency you want to connect your NFT with. Ethereum token is one of the most used cryptocurrency by NFTs platforms.
The user may need some Ether or Ethereum to offer its NFT in a store, where these stores charge a fee for this, except OpenSea platform, which provides the process for free, but the user still needs a digital wallet to create an account and register, and after registering in any platform for trading tokens or NFTs, the user just uploads the digital file and writes some details.
Where to buy and sell NFTs?
There are many different platforms that you can buy any NFTs on, but one of the most common NFTs marketplaces is the Opensea platform. Users can browse NFTs to be sold on the Opensea platform. The homepage arranges NFTs by categories, such as digital art, virtual world, and blockchain gaming groups. You can also see the NFT sales history on the platform, and check how much others have paid for the same item.
The platform uses Wrapped ETH (WTH) to bid because WTH allows users to bid on multiple items in the same Ethereum trading pool.
To bid, enter the auction section of your OpenSea account and follow these steps:
1. Choose your preferred item: Select the required item and click on “Make a Bid” to start bidding.
2. ETH Inventory: Click Continue, ETH will be upgraded to WETH through WETH terminal. (Note: Two transactions are required to complete the first ETH upgrade.)
3. Bid: Add the amount of cash then click on “Confirm Bid” to publish your NFT.
4. Email sharing: Finally, submit the email address, and you will receive a notification after the bid is accepted.
Note: each transaction is subject to a fluctuating ‘gas fee’. This money goes to the ‘miners’ and it is provided into computing power for the Ethereum blockchain.
How to sell your NFTs you have created?
After the token you have created is listed on any of the digital platforms or NFTs marketplaces, people can bid on your NFT once it’s available for bidding, but also you can put a fixed price and it can be set on the sale page and the returns you want to get from the initial sale and subsequent sales.
There are many platforms or stores for trading digital assets or non-fungible tokens rather than Opensea platform such as SuperRare, Nifty Gateway, Foundation, Rarible, NBA Top Shot, and others.
Twitter and Tik Tok are involved in NFT technology
Twitter, which has shown its interest in NFT technology more than once, has started developing an experimental feature that allows users to use their NFT properties as personal photos, and those photos will be marked with a token.
People who have accounts on Twitter platform started using their NFT property as personal photos a long time ago. After that, Twitter supports them and makes it easier. On the other side, there are users on social media using NFT proprietary images which is considered as a copyright infringement.
One of the biggest artists called Mike Winkelman has sold his NFT for 69 million dollars, and OpenSea’s NFT commerce store sees $4 billion in monthly sales.
The revolution of NFTs technology made a huge success as it allowed for people to have their own digital items. The property is registered on the blockchain nfts, and you can sell anything on it, just as Jack Dorsey, the founder of Twitter, sold his first tweet.
Conclusion:
Behind these three letters “NFT”, there are some indicators about the technological and artistic revolution standing on symbols and images, so that they become protected and irreplaceable, and the most important thing they are unique.
