Amitabh Bachchan’s NFT collection was auctioned for Rs 7 crore
Jack Dorse’s first tweet sold as an NFT for an oddly specific $2,915,835.47
An Indonesian student’s $3 NFT is Now worth millions
Artist Beepl sold his artwork in the form of NFT for $69 million
There is a new craze breaking out in the pg slot world and it is all about crypto-collectibles NFT’s, Non-fungible tokens are exploding in popularity
So there is a new confusing internet money thing in the town. But yes they are blowing up so much right now that one digital collage sold for $69 Million. Yes you read it right for $69 Million
So what are these NFTs and why are people trying to get rich off them? Lets found out
An NFT is a digital asset that depicts real-world elements like art, music, in-game goods, and films, which are generally brought and traded online using cryptocurrency.
Though NFTs are there around since 2014, they have now gained traction as means to buy and sell digital artwork.
For example, acclaimed digital artist Mike Winklemann, better known as “Beeple,” created “Every day: The First 5000 Days,” possibly the most famous NFT of the time, which sold at Christie’s for a record-breaking $69.3 million.
Individual images or the full collage of images can be seen for free on the internet. So, why people out there are willing to spend millions of dollars on something that might be simply screenshotted or downloaded?
Because a non-financial transaction allows the buyer to keep the original object. It also comes with built-in authentication, which acts as evidence of ownership. The “digital flaunting rights” are almost as valuable as the object itself to collectors.
How NFT is different from cryptocurrency?
NFT and cryptocurrency is like Humans and chimps which are fundamentally separate species with shared ancestors, yet share many similar traits. Blockchain is the common progenitor of both NFTs and cryptocurrencies.
NFTs and cryptocurrencies have a lot in common, but they also have a lot of differences. The major reason is that cryptocurrencies are fungible by definition and NFTs are interchangeable. One dogecoin is the same as another dogecoin, but an NFT is not the same as another NFT. Each one is individual, one-of-a-kind, and priced differently based on perceived worth and demand.
How does NFT work?
NFTs rely on blockchain technology to function. Because of its unique structure, each NFT has the potential to be used in a variety of applications. A digital asset management platform is a great way to represent actual assets like real estate and artwork online. Because NFTs are constructed on blockchains, they may also act as identity management systems in addition to eliminating intermediaries and linking artists to audiences. NFTs can eliminate middlemen and increase transaction efficiency.
Where NFTs can be used?
NFTs are commonly used by persons who are interested in Crypto-trading and collecting artwork. Aside from that, it may be used for a variety of other things, such as:
Digital Content – NFTs, help content producers make more money because they fuel a creator economy in which creators hand up control of their work to the platforms they use to promote it.
Real Estate- Timestamped NFTs might be used to transfer land documents, offer confirmation of ownership, and even track changes in property value over time. They may be used in real estate to simplify and speed up transactions, enable smart contracts for properties (enabling automated payments), and even build decentralized house rental services, all while safeguarding sensitive data such as credit card numbers.
Gaming – NFTs have sparked a lot of curiosity among game creators. NFTs can aid athletes in a variety of ways. Normally, you can buy goods for your character in an online game, but that’s about it. You may recoup your money with NFTs by selling the products when you’re done with them.
Domain Names – NFTs provide your domain with a name that is easy to remember. This functions similarly to a domain name for a website, making the IP address more memorable and desirable, generally based on length and significance.
Academic credentials- NFTs can also be used to display academic qualifications. NFTs may be used to offer evidence of attendance, degrees achieved, and other essential data that is recorded on the NFT chain and cannot be changed or hacked. By distributing tokens for each course finished and certifying any degrees achieved using smart contract verification mechanisms, NFTs may build immutable records for courses done.
Should you buy NFT ( Benefits and Risks associated with NFT )
Benefits of buying NFT
Ownership- You are able to prove your ownership with non-fungible tokens. NFTs can assist in connecting ownership to a single account because they are on a blockchain network. Most importantly, NFTs are non-distributable and cannot be shared among numerous owners. As a result, NFTs have the potential to change the way we verify and manage asset ownership.
Collectible- All NFTs are technically collectible. As previously said, they are one-of-a-kind and only one of them may exist. You may keep them once you buy them, and their worth will rise over time.
Resellable- The majority of individuals will become engaged with NFTs to make money. Reselling them is a lucrative business for many individuals. Investing in NFTs by virtue of resale value can yield large returns.
Immutable- No one can ever change the information on the token. It also can’t be deleted, lost, or removed from the blockchain. They are designed to live indefinitely since their data will never change. This makes them collectible and valuable.
Risks associated with NFT
Evaluation – Buying an NFT, like any collection, is a hazardous proposition because its value is rising. Unlike Blockchain asset tokenization trading cards or purchasing a real asset, NFTs are a new market, therefore there is no assurance that demand for digital assets will be similar. If there is no market for the NFT you purchase, you risk paying an exorbitant price for something that depreciates or is just unsellable.
Storage- NFT sales are tracked using blockchain technology, which establishes ownership. Marketplaces and platforms like Open Sea and Rarible are where genuine NFTs are created and kept. If these sites are shut down, there is no guarantee that you will still be able to access the material.
Online Fraud- The rise in popularity of NFT has also raised the risk of cyber-attacks on the market. There are several examples of reproductions of the original NFT shops being sold on the internet. Because of the original logo and content, many stores appear to be genuine. These phony NFT businesses pose a significant risk since they may offer NFTs that do not exist in the digital world+. Furthermore, there is a potential that counterfeit NFTs will be sold in a phony NFT store.
Thus, decide yourself are NFTs worth all the money and hype?