Non-fungible Token (NFT)
What is Non-fungible Token (NFT)?
An NFT is a digital asset that represents real-world artifacts such as art, music, in-game items, and videos. They are purchased and traded online, frequently using cryptocurrency, and are typically encoded using the same underlying software as many cryptos.
Understanding Non-fungible Token (NFT)
Non-fungible Tokens (NFTs) have been around since 2014, but they are gaining popularity currently as an increasingly popular means to acquire and sell digital artwork. The market for NFTs alone was approximately $41 billion in 2021, which is approaching the total value of the worldwide fine art industry.
NFTs are also typically one-of-a-kind, or at the very least one of a very limited run, with unique identification codes.
This is in sharp contrast to the vast majority of digital inventions, which are virtually invariably endless in quantity. Cutting off supply should theoretically increase the value of a particular asset, if it is in demand.
However, many NFTs have been digital works that already exist in some form elsewhere, such as legendary video clips from NBA games or securitized versions of digital art that is already circulating around on Instagram.
Individual images—or perhaps the full collage of images—can be viewed online for free by anyone. So, why are individuals prepared to spend millions of dollars on something that can be readily screenshotted or downloaded?
Because an NFT permits the buyer to retain ownership of the original item. Furthermore, it includes built-in authentication, which acts as proof of ownership. Collectors appreciate “digital bragging rights” nearly as much as the thing itself.
“Everydays — The First 5000 Days”
Collage of digital images that was “minted” as a “nonfungible token” (NFT) and sold for $69.3 million.
Satoshi Nakamoto
Kristel Bechara
There are also NFT music playlists available on Spotify! They can be accessed exclusively with the members cards and NFT tokens:
FAQ
Can NFTs be traded or exchanged?
NFT’s are tradable and interchangeable like any other kind of digital or tangible asset. NFTs are can purchased and sold on the specialized marketplaces.
Can NFTs be converted to cash?
There are several ways to exchange NFTs for cash. But of course the price depends on the value of each individual NFT, the chosen platform or marketplace and market demand.
Do NFTs have a future?
NFTs have already proven to be flexible in a variety of industries, like real estate, gaming, music, digital art, and etc. The long-term development of NFTs will be enhanced by the further usage of fresh and creative ideas.
Latest news about NFTs
- Singapore-based Web3 data firm Treehouse has acquired Origins Analytics, an enterprise-grade NFT analytics platform. Origins’ founding team will join Treehouse’s product suite, providing clients with access to popular NFT analytics tools like AlphaStream, NFT Analytics Bots, and NFT Wallet Profiling API. The acquisition comes amid a bearish market trend and consolidation. Treehouse’s strong balance sheet and support from prominent investors and venture capitalists support its mission to become “The Most Comprehensive Digital Asset Analytics Platform.”
- Umoja Foundation, a web3 philanthropic initiative, is set to release its inaugural charity NFT collection on November 28, combining web3 technology and philanthropy. The NFTs, created through generative art, will directly support the welfare of the Dasom Ministries Orphanage in Uganda. The collection will consist of 250 unique artworks, each priced at approximately $100 USD in Ethereum. Any resale proceeds will fund the foundation’s ongoing initiatives.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Damir is the team leader, product manager, and editor at Metaverse Post, covering topics such as AI/ML, AGI, LLMs, Metaverse, and Web3-related fields. His articles attract a massive audience of over a million users every month. He appears to be an expert with 10 years of experience in SEO and digital marketing. Damir has been mentioned in Mashable, Wired, Cointelegraph, The New Yorker, Inside.com, Entrepreneur, BeInCrypto, and other publications. He travels between the UAE, Turkey, Russia, and the CIS as a digital nomad. Damir earned a bachelor's degree in physics, which he believes has given him the critical thinking skills needed to be successful in the ever-changing landscape of the internet.
More articlesDamir is the team leader, product manager, and editor at Metaverse Post, covering topics such as AI/ML, AGI, LLMs, Metaverse, and Web3-related fields. His articles attract a massive audience of over a million users every month. He appears to be an expert with 10 years of experience in SEO and digital marketing. Damir has been mentioned in Mashable, Wired, Cointelegraph, The New Yorker, Inside.com, Entrepreneur, BeInCrypto, and other publications. He travels between the UAE, Turkey, Russia, and the CIS as a digital nomad. Damir earned a bachelor's degree in physics, which he believes has given him the critical thinking skills needed to be successful in the ever-changing landscape of the internet.
