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Let’s understand what NFT means before diving into its real world applications today.
What are NFTs?
NFT stands for non-fungible tokens. In laymen terms, this means NFTs are tokens that cannot be used interchangeably. For example, a bitcoin is fungible; you can exchange one bitcoin for another and they are essentially the same. Now, what exactly are NFT used for?
Well, NFTs basically store digital data on blockchain. This digital data type can vary tremendously and it really is up to your imagination what you make do with it. You might be wondering now what a blockchain is… well a block is like a digital ledger holding the records of each transaction and these blocks are “chained’ together, hence called blockchain. What I’m saying is that NFTS store digital data like art, music, videos etc, and the transactions are stored on a blockchain to maintain record.
This generally entails a complete chain of custody in the event of sale. You can easily find out the original price and the seller as well as see how many people purchased it and for what price later on. This helps find regular patterns in our daily lives. This can be useful from a business standpoint to be privy to their financial dealings. Additionally, it allows complete transparency in sales.
What are NFTs used for?
Well, NFTs are used to purchase the copyright of digital content. This is achieved by the “tokenization” of these files before being purchases so a person has a unique token to show for hi purchase. This is what sets apart copying the NFT or screenshots of it from the original which has a unique token that cannot be replicated and can be proven in case of a dispute about original owner. NFTs are currently being used to own digital content like a video, lyrics, digital art, hosting domains, properties in the virtual world etc. The possibilities are endless– only you dictate what the limits are in relation to this.
How to buy NFTs?
There are several marketplaces designed to sell NFTs around the globe. Websites like Rarible and Opensea are the leading and most trusted places to trade NFTs– buy and sell. You can find a plethora of items available here including, but not limited to, hosting domains, song lyrics, digital art, a live moment someone captured, in game purchases, VR property, VR brag rights etc. The list is endless and inexhaustible depending on what your imagine leads you.
Why to buy NFTs, then? What’s all the hype about?
To be honest, NFTs have been around for what.. 5 years but they only recently blew up because one digital painting by an artist got sold at a huge, huge amount of sum. NFTs are useful for people who really support an artist for eg and they want to “own” a song or certain lyrics from it, or a last line … anything to protect us. They hype is real because of celebrities suddenly taking an interest in this as it is the demand of times. NFTs offer something different in that as an artist you can continue to get your income unhindered years later as long as the item keeps selling, you’ll get a good share.
Should you buy NFTs, then?
This depends on you… do you want to continue this? Do you want him to continue to be blaming you for everything? Remember, adding an item on sale on these websites is hard enough. This question is quite open and subjective… it depends on what you want to sell on an NFT marketplace and, yes, it’s not free. Rather, the “gas-fees” for driving to college and back is not possible for me rn. If you already have a following and your fans are demanding an NFT, this is for you!
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