You’ve heard about NFT from your work mates or a podcast, you google it and you find some pictures that are sold for millions of dollars.
Let’s find out what NFTs are and what people can make with them.
NFT is an abbreviation for non-fungible token. Non-fungible denotes that it is a one-of-a-kind item that, unlike money, cannot be exchanged (if you change 1 dollar with another 1 dollar, the value is exactly the same).
Consider some of Picasso’s works. You cannot swap two photographs because each item is unique and has its own value.
You are the owner of the blockchain with the help of blockchain.
No one can steal your NFT or deny that it is yours because it is stored on the blockchain. If you’re unfamiliar with blockchain, here’s an article that I wrote about it.
NFTs are based on scarcity.
Because NFTs collections have a limited amount of pieces, each piece will increase in value if another person want to purchase from that collection.
If we go to OpenSea, the largest platform for NFT, based on Ethereum (which we will explore in more detail later), we will see products such as Crypto Punk, Lazy Lions, and others that are sold for a large sum of money.
If you decide to invest in NFTs, choose one that attract you.
If you like one NFT and want to buy it, go ahead and do so, assuming you have the funds. If you like it, chances are quite high to be liked by another people.
NFTs are more than just a masterpiece.
Many people consider NFTs to be merely masterpieces, yet they are much more. Everything (nearly) can be sold as NFT.
Let’s assume Medium creates 100 NFTs that grant you free access to all of the blog’s posts. You keep the NFT for years and during that time you read all of the articles you’re interested in, and your initial investment is the money you paid for the NFT. If you wish to sell it later, the price will rise since more and more people would prefer free access to Medium, and there are only 100 NFTs in this collection.
NFTs can help with copyright issues.
If Rihanna purchases lyrics for her song from an NFT platform and someone claims copyright, she may demonstrate that she owns copyright for those lyrics and purchased them, with the help of the blockchain.