Non-Fungible Tokens known as NFTs, they are among the most popular assets that have recently appeared at the peak of today’s technology. Today, we will examine these digital assets, NFTs, which are based on the transformation of everything we can look at concretely in today’s world, such as art, music, sports, into abstract elements.
What is a Non-Fungible Token and How to Work?
“What does NFT mean?” when it is said; is a digital asset that represents real-world objects in the digital world, such as art, music, in-game items, and videos. Non-Fungible essentially means irreplaceable. What is irreplaceable? Let’s explain this with a simple example. When your clothes or shoes are old, you can go and get a new one instead. However, you cannot replace the Mona Lisa painting with another Mona Lisa painting. NFTs also have a digital signature that makes it impossible to copy in the same way. NFTs are unique.
Today, NFTs have entered the world of digital art and collectables. People now find digital paintings and works of art more interesting instead of buying regular paintings. It is possible to say that Metaverse and Web3 also paved the way for NFT assets. NFTs, which can be stored on many blockchains, are usually stored on the Ethereum platform.
Why Are NFTs Important?
Although NFT technology is being used in different areas day by day, it is mostly preferred for digital artworks today. Compared to traditional art collections, the reason behind the fact that NFTs are a multimillion-dollar market is that they have an un-duplicable digital signature.
What Are The Uses Of NFTs?
Especially for artists, NFTs offer the possibility to sell their works of art digitally to a global audience of buyers without using galleries or any intermediaries. Thus, artists maximize their profits from their sales, as they sell their artworks directly from the first hand, without the need for any intermediaries. In addition, the artist continues to receive a certain percentage of profit from their sold work. Every time their work is sold in line with the royalty fee they had determined. It can be easy for artists to choose between an NFT market where they can continue to earn money as their artwork is sold, and a traditional market where they sell one-offs.
How Can NFTs Be Bought?
In order to receive NFT, as in all other cryptocurrency markets, you must first have a digital wallet. The currency in your digital wallet must be the same as the cryptocurrency accepted by the platform that supplies the NFT. NFTs are usually sold through an auction system where you can bid. In addition, most NFTs are purchased with Ether(ETH), the native currency of the Ethereum network. The most popular marketplaces where you can trade NFT are OpenSea, SuperRare and Rarible.