NFT is a non-fungible token, which is a digital token linked to a large blockchain system. This is a complete explanation of what NFT is, how to use it and what are its benefits.
Recently, the term NFT is often heard in cyberspace. Non-fungible tokens (NFT) are part of a large blockchain system. In other words, NFT is actually a digital asset in various forms, it can be photos, videos, and others. It's just that NFT cannot be exchanged, but can be traded.
Quoting from CNN, Monday (12/27/2021) NFT makes it possible to digitize artwork assets and other collectibles into verifiable and easily traded assets using blockchain.
So far NFT is widely used to represent an item, mostly works of art in digital forums. You could say NFT is a certificate of ownership of an item.
Most commonly, today's NFT is indeed used to buy and sell digital artwork. What is bought here is the NFT, as a sign of ownership of a work of art.
It may seem simple to some people, but many people are willing to spend money to have an NFT version of a digital image, you know.
For example, the first tweet of the founder of Twitter, Jack Dorsey was offered USD 2.5 million or equivalent to Rp. The decade-old 'Nyan Cat' sells for $600,000.
What Can Be Sell or Buy with NFT?
Apart from works of art, there are many other forms of NFT that can be traded. The shape can be different according to what item you want to attach the NFT to, it can be collectibles or even physical objects.
Since every blockchain transaction is permanently and publicly recorded, NFT provides a way to assign value to objects online by their owners. For example, an artist embeds an NFT on his work, he can set a price for each NFT that is traded. Still don't understand what NFT is?
NFTs are typically used to buy and sell digital art and can take the form of GIFs, tweets, virtual trading cards, physical object images, video game skins, virtual real estate, Pokémon cards, rare coins, a limited edition pair of Air Jordan shoes, and much more. .
How to Buy and Sell NFT
Don't just buy NFT, you have to decide which market you buy it from, what type of digital wallet to use, and what type of cryptocurrency you need.
Some of the most common NFT marketplaces include OpenSea, Mintable, Nifty Gateway, and Rarible. There are also niche markets for more specific types of NFT, such as NBA Top Shot for basketball video highlights or valuables for auctioning tweets like Dorsey which is currently up for bid.
NFT is also sold in the market and the process varies from platform to platform. You have to upload the content first to the marketplace, then follow the instructions to convert it to NFT.
Next you will be asked to enter specific things such as a job description and a suggested price. Most NFTs are purchased using ethereum, but can also be purchased with other ERC-20 tokens such as WAX and Flow.
Anyone can make NFT. All it takes is a digital wallet, an ethereum purchase, and a connection to the NFT marketplace where you're uploading to convert the content into NFT or crypto art.
The NFT market itself has quadrupled in 2020. The amount is more than US$ 250 million.
Benefits of NFT
NFT digital assets have a number of advantages:
1. Copyright Protection
NFT provides a unique proof of ownership. Cannot be plagiarized or duplicated because tokens are stored on the blockchain.
As a result, NFT minimizes people from abusing copyright because they can no longer arbitrarily steal other people's work. This makes protection of copyrighted works very good.
People can't just claim that they own a digital asset. Because there is a single unique NFT that is proof of ownership of digital assets. NFT can only be owned by 1 owner at a time.
2. Monetization of Artists
With the NFT, an artist's work can be more easily traded and make money. This is especially true for digital assets.
Artists only need to sell their work on the NFT marketplace, without worrying that their work will be damaged, stolen or plagiarized. The process in a marketplace that is open to the public, across countries and without borders, makes the artist's work more recognizable by anyone. The market is wide open.
In addition, the existence of NFT opens up wide opportunities for artists and musicians to add new income opportunities. For example, a musician who has just released an album, can create a special NFT for the exclusive new single on the album.
3. Stored Safe
NFTs are stored in the blockchain network. This makes NFT super secure, impossible to hack or break into.
Blockchain is built in a decentralized manner and uses cryptography, so the security aspect is very guaranteed. If news emerges about people conceding in crypto, then it is not blockchain technology but due to misuse.
4. Adoption of NFT in Other Fields
The NFT function, which provides unique certification or proof of ownership of digital assets, is very likely to be applied to other fields. For example, to make a house certificate, birth certificate, agreement certificate. By using NFT, certification becomes more secure because everything is stored securely on the blockchain.
Imagine, the problem of land or vehicle certification that has been prone to fakes, can be solved by using NFT solutions on Blockchain. It is no longer possible to have duplicate or fake land certificates if they have been recorded using NFT.