What is the simple description of an NFT
News of the blockchain, metaverse and cryptocurrency have been blowing up on the internet for some time now; with a new update or addition constantly making the blockchain news. It’s enough to leave anyone who is not familiar with the NFT world, completely confused with the concept and idea of this metaverse invention. Especially when news of artist Grimes selling videos of baby cherubs and swords for roughly five million dollars becomes popular; just how was this possible, and more importantly, why?
It begins by truly understanding the term NFT and what platform it sits on. NFT, otherwise known as ‘non-fungible token’, is essentially the purchase of ownership of a digital good, which usually comes in the form of an image, animation or video. NFT’s can be bought and sold and bid for on the metaverse; a shared virtual space in which the NFT’s live on. Non-fungible tokens can come in the form of any type of imagery, with space monkeys, battle scenes and furniture all catching the eye of users, leading to a bid on buying them.
Essentially, these digital goods are a version of buying fine art at Sotheby’s; only one person can truly hold an original Monet, regardless of the amount of physical and digital copies that circulate across the globe. This also goes for NFT’s; there is only original non-fungible token that can be purchased, regardless of the copies that might circulate online. When you buy an original NFT, it means that you have all the rights to the image along with built-in authentication which serves as proof of ownership, meaning it now belongs to you and only you, giving you free reign to do what you will with your goods.
Examples of NFT’s
NFT’s may be selling for millions of dollars, however they aren’t as rare as physical art may be and NFT’s are open for anyone in the market to buy. To get a good grip on understanding NFT’s, it is worth looking at an array of NFT’s on the market at the moment. Websites including openseas.io provides the opportunity to create or buy specific types of NFT’s including Art, Photography, Music, Trading Cards and Collectibles.
Some popular examples of NFT’s include:
Beeple: Everydays: the First 5000 Days
In 2007, digital artist Beeple pledged to make 1 piece of digital art every day. His art piece ‘Everydays: the First 5000 Days’ is a collage collection of the first 5000 days, which sold for $69.3 million, and is currently the most expensive NFT ever sold to a single buyer.
Opened in 2020, Decentraland is a virtual world in which everything within it is an NFT, ranging from the plots of land to the art that is featured on it. Anyone can play on Decentraland and have access to buying anything that is based on it.
RTFKT’s digital sneakers
In 2021, digital artist RTFKT sold a series of sneakers that he made with another artist called Fewocious. Although they are digital versions of sneakers meaning they cannot be worn, the two artists were able to sell the series for around 3 million dollars, in a matter of minutes.
These examples of NFT’s show how varied the NFT world is; ranging from digital art in the more traditional sense, to architecture, to digital versions of physical items. This range means that no matter what your interests, there will be an NFT out there that fits your interests. If not, you are always able to create and publicise your own! The digital market provides an opportunity for those who would like to get involved in the NFT world to create anything they like and promote it, giving way to a digital world that is inclusive, varied and interesting.
How do you make money from an NFT?
Arguably the most important question that people are asking is, how exactly do you make money from an NFT? Is it worth the hassle of finding an NFT that you feel will be a success? What do you gain from it if it does become successful?
NFT creators have the ability to create art that is sold for millions of pounds. With freedom of creativity to invent any type of NFT you want, this gives way to unique and complex designs that resonate with people, ending up with them being purchased. There are a variety of platforms and marketplaces where NFT’s can be sold and traded on including Opensea, Superare and Mintable.
What happens if you are on the opposite end and are actually purchasing the NFT from a creator? NFT’s are easily flipped; especially if they are popular, and can be resold for way above what it was originally purchased for. The trick is to be picky with what you invest in, to ensure that a profit can be easily made.
Is it worth investing in non-fungible tokens?
The world is undoubtedly moving towards becoming more digitally focused, meaning the metaverse, blockchain and ultimately NFT’s are becoming increasingly relevant and popular. With the blow-up in NFT’s not winding down anytime soon, this would be a great time to start exploring the NFT world and finding out what’s out there.
With an array of art, architecture and collectibles amongst other digital goods out there, it is worth understanding what fits into your interests and investing not only in the physical world, but the ever growing digital world too.