NFTs: What Are They And Why You Need Them?
Non-fungible tokens (NFTs) received explosive market recognition at the end quarter of 2021 and ever since then, a lot of people have started adding more NFTs to their collection. While a lot of people have made money with this digital asset, some have come across the word non-fungible tokens and still don't know what it means. Why do you need to know about NFTs and the NFT art market? This is a breakdown of NFTs and tangible reasons why you need to start making or adding to your collection.
What Are NFTs And NFT Collection?
NFT is a form of a digital or physical asset linked digitally on the blockchain and sold online. Today, it mainly represents major artworks but also includes things like game items, physical arts, lands, and other forms of graphics. The major currency in which non-fungible tokens are traded is through cryptocurrencies like Ethereum, Solana, Matic etc. Although the NFTs have been existing since 2014, there was not much recognition given to them, and they only started enjoying popularity recently. The owner of Twitter, Jack Dorsey, even went ahead to sell the first tweet he made on Twitter for about $3 million as an NFT. About $174 million have been spent on the NFTs art market, and experts predict that more will be spent on adding to NFT collections.
How Do NFTs Work And Differences From Cryptocurrencies?
Unlike what people think, the majority of the NFT market operates under the Ethereum blockchain, although they are different from the Ethereum coin. People think that NFTs operate as cryptocurrencies and sometimes call them NFT crypto coins and other jargon.
The only similarity that NFTs share with cryptocurrencies is that the blockchain programming that cryptocurrencies have is similar to theirs. This is where the similarities end, every other thing, from how it operates, to how it is marketed, its functions are different from that of cryptocurrencies.
Cryptocurrencies such as Bitcoin and Ethereum are fungible which means they can be exchanged for another Bitcoin or Ethereum. However, this is different for NFTs as they are non-fungible tokens and have a unique signature that makes them impossible to exchange.
Why Do You Need An NFT Collection?
Sometimes Metaverse is confused with NFTs and some call it Metaverse NFTs because they are confused about the uses of NFTs and their whole concept. You don't need to buy the most expensive non-fungible tokens to add to your collection, the same way you don't need to be a crypto enthusiast or a techie to be able to sell one.
Here are the reasons you need NFTs, whether you are a collector or an artist, or a normal person that doesn't know about tech:
- Mainstream Adoption:
A lot of companies who are giants in their industry such as Marvel, Nike, and others have shown a lot of interest in non-fungible tokens (NFTs) and this is some sort of a guarantee that the NFT art market is yet to be utilized to the very end. Even celebrities are also adding to their NFT collections, such as Eminem, who bought the Bored Ape Yacht Club NFT for $ 452,000. This simply means that if you can successfully launch or create your NFT collections, chances are that you may get some huge money selling it or increase your social status and investment buying it.
- NFT Collections Come In Diverse Form:
When NFTs are mentioned, it doesn't mean it only comes in 2D graphics, NFTs come in 3D graphics, GIFs, video animations, and even designer sneakers. This holds a lot of opportunities, as it simply means that a lot of people don't necessarily have to be artists who create sculptures, mosaics, or paintings to be able to benefit from this new goldmine.
- Authentic Content:
There is nothing like an NFT crypto coin because NFTs are not like cryptocurrency, they are unique and it is not possible to market a pirated NFT. An NFT collection cannot be pirated and sold to another user because there is a unique signature that each NFT has.
- Your Asset Is Easily Identified In The NFT Market:
One of the unique features of non-fungible tokens(NFTs) is that there is virtually no argument about who owns an NFT since it is easy to identify an owner. Since NFTs are digital assets, investing in one of these means that you don't have to worry about ownership in the future as the record of ownership is kept on the blockchain. Nike is even trying to introduce an NFT system where the authentication and identification of shoes can be done easily.
- One-Owner At a Time:
Whether you have the collection of the most expensive non-fungible tokens(NFTs) or one with a mid-range price, there can only be one owner of an NFT at a time, unlike cryptocurrencies where there are more than 2000 Bitcoin and Ethereum available. For instance, when Mike Winkelmann sold one of his NFTs Every day: The First 5000 Days for about $69 million to Vignesh Sundaresan, who founded the Metapurse project for NFTs, the ownership of the NFT automatically went to Vignesh Sundaresan. This means that Mike Winkelmann has no right to the NFT or the right to create an exact NFT.
- The NFT Art Market Is a Goldmine:
NFT is probably one of the fastest ways to make money in 2022, as it has helped a lot of people, both old and young, to make huge sums. The NFT market is growing rapidly and many people are learning how to buy and sell NFTs day by day. Although some experts predict that the NFT market will soon be a thing of the past, stats show that such a prediction is not coming to pass at the moment.
Non-fungible tokens(NFTs) operate in similar programming to cryptocurrency, but they are two different things. This digital asset has made a lot of people including digital artists lots of money and for the reasons stated above, there is no excuse why you are not yet minting or adding to your collection. So whether you’re an artist, fashion brand, model, social media influencer or future tech enthusiast, we at Connectopia are here to bring your desires a great success.