What Are NFTs?
NFT’s are non-fungible tokens. Basically, this means that they cannot be replaced by anything else. For example, money is fungible because other money can replace it, I.e. there is tons of money in circulation, so if you trade money for money you still have… money. An autographed item of its own kind, or a specific trading card is non-fungible, though, because whereas you can trade these things, you’ll end up with a different thing.
NTFs can be anything digital, but the current trend is using this tech to sell digital art. This is what people hope will be the evolution of art collecting: collecting digital art. For example, they can buy videos or pictures and have ownership of them. While others can still download them, they do not own the actual file. To make it simple: whereas multiple people can own multiple prints of famous physical art, there is only one person who owns the original.
There are benefits for the artist, buyer, and collectors, as well. For the artist, they can sell their work and still receive royalties every time it is changed hands, so if it does end up selling for an inflated price, they still reap the benefits of it. For the buyers and collectors, it allows them to support their favorite artists, hold the ownership of the art, and potentially sell it for a profit.
There are risks involved, as well. Artists could choose to sell almost exactly the same NTFs to different people, making them less in value.
There are different marketplaces for NTFs right now, some of which are OpenSea, Rarible, and Nifty Gateway.
Some gaming sites are also using NTFs as in-game items, giving a unique experience for those willing to buy them.
Overall, it is something that is new and happening in the tech world. Is it a trend you’re willing to hop on?
