Nft’s are crypto tokens that have their own unique identity. Think of it as cryptographic blockchain assets with their own identity and irreplaceable. In simple terms, NFT is an asset with a unique identity and can prove its ownership with the help of blockchain.
Traditional arts or masterpieces are valuable because they are kind and unique. No other person can replicate the same masterpiece, but people can reproduce or copy and paste other’s works in the digital world.
That’s not the case with NFTs. Cause you can tokenize your artwork which will act as a certificate of ownership.
For example, you are an artist, and you made excellent art. Now you want to sell that on the internet. For that piece of art to turn into an NFT, you have to tokenize that art, or in other words, you have to mint it. By that, you successfully turned your art into NFT, and you are the sole owner.don’t worry; the blockchain secures them – no one can modify the record of ownership or copy/paste a new NFT into existence. Blockchain is, in simple terms, a record of who owns what and which is stored on a shared ledger. So The documents cannot be forged because the register is maintained by thousands of computers around the world.
Perks of creating an NFT.
As you may know, the advantages are more than the disadvantages of owning NFT. For you to better understand, I have listed some of the points below.
- You can easily prove you are the owner of your assets.
- You can earn royalties when every time it’s sold.
- You can determine the scarcity of masterpieces you created.
- You can sell it in any NFT marketplace, and you won’t have to face the hassle of dealing with a middleman.
Why are they worth so much money?
Inflexible and Exchangeable
To clarify this, think about the days of the online world where you’d see an identical meme floating around on Facebook, Reddit, Instagram, Blogs, almost on every kind of social media or forum. Do you know which jpeg or gif is, in fact, the original? Of course not.
The majority of people don’t know who the meme’s author is. So NFTs determine the creator’s creation being genuine, and yes, it can not be altered or changed.
Once an NFT is minted, it can also be sold or traded through an NFT marketplace. Most NFTs are bought in Ethereum (ETH), and after that, they can be offered for sale again on the open market or privately. The author will receive a commission every time the NFT is sold.
People buy NFTs for their scarcity and uniqueness. Since NFTs are actually non-fungible, and the creator’s original work or asset is validated-that means there’s not another like it exists.
Which is the complete opposite of the memes that float throughout the internet. Where nobody knows who made it or where the original image/gif is from.
Since NFTs act like cryptocurrency, you can also say bitcoin and other cryptos are polar opposites because they are fungible assets.
For example, Let’s say you give me 5btc and I give you back 5btc. They are precise of the same value. They are fungible and equal. But if you give me Nyan cat NFT and I return you with Punkape NFT, they are entirely different and unique in value. They are, to be exact, non-fungible.
As NFT means unique assets and one of a kind, it can be held by only one person. People also use this for flexing on the internet. Take Monalisa’s picture, for example. If someone buys it, they will definitely show it to the world. Similar to that, people use this to show their status on the internet.
Recently Stephen curry bought bored ape NFT and set it as his profile picture on Twitter. According to the bored ape yacht club, he bought it for $180,000 or 55 ether coins. Similarly, many big names are jumping into the NFT world. It has become like a pop culture for now.
Now you might be thinking, “that’s dumb. I can easily screenshot that unique NFT, and I can post it on my profile.”
Well, yes, you can. But does download or screenshotting an image of Da Vinci’s Mona Lisa make you the proud new owner of a multimillion-dollar ancient piece of art?
OF COURSE NOT
Owning the real thing will always have more value than getting the copies. Some people compare it to buying an autographed print or buying celebrities items like hair or clothes, etc.
Does this have a secure future, or is it just a hype bubble?
Former Christie’s auctioneer Charles Allsopp said the concept of buying NFTs made “no sense.”
Amrit Dhami, the thematic analyst at GlobalData, says, “NFTs will be perceived as a fad until real-life use cases are developed. Like all market bubbles, it threatens to burst once investors realize the lack of substance.”
They might be right in their vision. But I think the NFT industry isn’t going to burst, at least for several years. It might even bloom far more than we imagine, actually, thanks to the announcement of metaverse by Meta (former Facebook) and other virtual worlds like Decentraland. Pieces of land are being bought and sold as NFTs in Decentraland and other alternatives as we speak.
NFTs made it possible to own digital assets such as skins, lands, images, etc., in virtual worlds. Games such as Axie Infinity (AXS) have been able to reach a billion-dollar capitalization within a few months, thanks to the establishment of NFTs.