Popularly known as a digital asset, NFT has been breaking the internet, especially since the inception of lockdown. It is known to be a vital part of the digital arena. NFT basically stands for “Non-Fungible Token.” Elementarily, they represent real-life objects. Anything ranging from art files, articles, music albums, videos, memes, games, etc., are all NFTs. They possess a unique identification code that gives them the value equal to cryptos.
Why such hype about NFTs?
NFT art has been in existence since 2014. However, they are gaining popularity for the past few years only. NFT can be understood as a new format of online trading. This has changed the perception of people towards artwork. 2020 has proved to be a magical year or a year of profit for NFT traders. In simple language, we can define NFT as art files attached with legit ownerships and stamps.
Procedure to trade on NFT
Unlike bitcoin and cryptocurrency, trading on NFT is quite hassle-free. To trade on NFT, an individual has to simply follow the below-mentioned steps-
- The first step is to sign up and create your Id at a marketplace.
- Then the next important step is to get your information validated by a blockchain.
- “Mint” virtual tokens and upload them. This process costs around $40 to $200; however, this is an essential step and must not be skipped.
- Now, you are all set to put your artwork for auction on NFT.
NFT provides a platform for talented artists to get a healthy return for their skills which was lost somewhere around the sea before the introduction of NFT. NFT has gained the value of art in the eyes of people. For a long time, digital art has remained unrecognized and mocked. Artists were expected to sell their work at cheap prices or share it for free on big online giants like Instagram and Facebook, where they’re often used as banner advertising. Easy it looks, but it did not even give a considerable amount of return to the owners. Experts believe NFT to be a step towards a long-awaited Blockchain revolution and that this will lead to a radical transformation in consumer capitalism.
How does it work?
NFTs are said to be a part of the Ethereum blockchain. Mind you. The Ethereum blockchain is the rival chain of bitcoin. These blockchains contain individual tokens and carry a little extra information inside them as compared to other blockchains. This extra space occupies artwork ranging from memes, videos, pictures, sketches, files, GIFs, etc. This becomes a part of a valid blockchain and can be brought and sold according to the market demand. The art form stored cannot be hacked or downloaded. Even if you are an expert, the right clicker still won’t download the information that makes them part of the Ethereum blockchain.
Quite a new concept, yet it has driven the digital market crazy. NFT is allowing artists to get genuine credit for their hard work and time. Apart from selling and buying, NFT permits the user to attach a commission to the file. This will help them earn money every time anyone buys the art piece—Royalty.