What is an NFT?
An NFT is a non-fungible token which is a unit of data stored on a digital ledger called blockchain meaning that it is unique and cannot be replaced. NFT’s are similar to cryptocurrency such as Bitcoin, but are not mutually interchangeable, hence the name “non-fungible token”. They represent items such as art, music, and videos that are often paid for with cryptocurrency. NFT’s have been around since 2014 but have recently gained popularity as a means of buying and selling digital artwork.
How do NFT’s Work?
NFT’s are held on the Ethereum blockchain, which is a distributed public leger that records transactions. NFT’s are similar to collectors’ items, so instead of having a retro signed hockey jersey, the buyer would have a digital version instead. The individual who buys an NFT also gets exclusive ownership rights, meaning the NFT can only have one owner. This makes it easy to verify the ownership and transfer tokens between owners.
How to Buy NFT’s
Since NFT’s are stored on blockchain, you will first need a digital wallet to store cryptocurrencies. Then you will need to purchase cryptocurrency such as Bitcoin or Ethereum using a credit card on platforms such as Coinbase and even PayPal. After you have a digital wallet set up and purchased cryptocurrency, you’ll need to go to a NFT marketplace such as OpenSea.io, Rarible, or Foundation, and there you will find different artists selling NFT’s. Buying an NFT may be risky as the future value is uncertain, thus buying an NFT is a personal choice for an individual who has money to spend.
The Most Expensive NFT’s Sold:
An artist named “Beeple” sold an NFT called “Everydays: The First 5000 Days” at $69.3 million. This NFT was a combination of the first 5000 digital pieces of art Beeple created starting from May 2007.
A character with light blue skin and a head band called “CryptoPunk #3100” was sold at $7.58 million
References
Clark, M. (2021, March 3). Nfts, explained. The Verge. https://www.theverge.com/22310188/nft-explainer-what-is-blockchain-crypto-art-faq.
Conti, R. (2021, June 23). What you need to know about non-fungible tokens (nfts). Forbes. https://www.forbes.com/advisor/investing/nft-non-fungible-token/.
List of 10 most expensive NFTS ever sold. 101 Blockchains. (2021, June 20). https://101blockchains.com/most-expensive-nfts/.
