NFTs are all the rage! From the English Non-Fungible Token. Although their existence fascinates the world, the majority do not really know what exactly they are, let alone how they work. The first NFT was created in 2014 on the Ethereum smart contract platform. However, the NFT established itself in 2017 in the game Crypto Kitties which offers to collect unique cats with their own characteristics on the blockchain. Cats can mate to give offspring inheriting the own characters of their parents. This game marks the launch of NFTs and the beginning of a great adventure for enthusiasts.
An NFT: What exactly is it?
While the term NFT is increasingly present in the media, many Internet users do not really know its exact meaning. NFTs are forms of cryptocurrencies that can bring in thousands or even millions of dollars for some artists. They were created for the purpose of authenticating the ownership of a virtual object or a digital work of art.
In its simplest sense, NFTs are unique digital goods. An NFT is a virtual object of an authentic character. Its traceability is guaranteed by a blockchain. For connoisseurs, the blockchain is a database on which all digital transactions and events are recorded and recorded.
Being a cryptocurrency in the same category as Bitcoin, NFTs have their own characters. Non-Fungible Tokens or Non-Fungible Tokens, in its sense of non-fungible, have a unique character that cannot be interchanged with another NFT because each NFT has its own value, its own utility and cannot be replaced or imitated by another. Unlike Bitcoin, which is possible to be changed by another Bitcoin token with the same value as this one. By its Token meaning, it is a unit that is exchanged through blockchain technology. Let's see in detail what these NFTs are.
What are NFTs?
Although NFTs have reached the general public in the field of video games, tokens have quickly taken an important place in the field of art and sports. NFTs can be used for many things, but their fascinations are mostly based on digital art and collectibles.
The world is evolving more and more in the digital by bringing about considerable changes. If at the time of our grandmothers, the collection of murals permeated the smells of paper and paint were all the rage, the new generation has completely changed its taste. In other words, people have turned to unique and authentic digital objects that have the same value as other works of art because of their authenticity.
There are now thousands of NFTs. In video games, you can find NFTs ranging from accessories, appearances to territories on a map. Due to their uniqueness, only the holder of the NFT can access and enjoy them. In the world of art, there are collections of drawings, clothes. A little strange for some but you can also acquire a tweet NFT from a famous person.
How do NFTs work?
The art market is experiencing great propulsion thanks to NFTs. The revolution brought by the NFT benefits artists as well as collectors and enthusiasts. Indeed, NFT technology is based on "smart contracts" of crypto-currencies.
The transaction is roughly similar to the different stages of sales. The creator converts the rights attached to his work to digital tokens on platforms such as NBA Top Shot, Nifty Gateway, OpenSea, Rarible, or Super Rare. The buyer goes to one of his platforms to buy an NFT by cryptocurrency.
The NFT's detention attests that it is the sole owner of the original version. Subsequently, he has the right to dispose of his NFT as he wants, he can withdraw it from the virtual world or sell it later. All transactions are recorded on the blockchain database. NFT prices can rise and fall over time and depending on public interest. Hence the owner can sell his object and the cycle begins again.