Have you ever wondered, sleeping next to your teddy bear and waking up in the dunghill or in the bumps of a road? No? But let's just think of it, what would it feel like? Probably you are going to curse someone, or you'll feel like you are being dumped. What if I tell you the same goes for this blockchain revolution? If you are not going to ace it, you'll feel devastated.
There's nothing like an unexpected explosion of blockchain news to leave you thinking, what's going on here? Where am I? That's the feeling a lot of people experienced while reading about the 'Disaster Girl' who recently sold her popular meme as an NFT for $500,000. This is not it! Grimes getting millions of dollars for NFTs, and don't just forget about Nyan Cat being sold as one, and people usually mourned at this.
Let’s Dig Into Some Basics!
Before moving on, answer a simple question, would you buy an autographed tweetup worth 2.5 million dollars? Sounds pathetic? But this is for true ladies and gentlemen, the founder of Twitter sold his first autographed tweetup as an NFT.
You might be left in ultimate chaos: what is an NFT? After stressing my head with hours of reading, I think I know.Okay, let's start off with the basics.
WHAT IS AN NFT? WHAT DOES NFT STAND FOR?
NFTs exploded earlier this year, but what is it? Well, Replace the “fungible” with “replaceable. Now repeat after me “non-fungible” means “non-replaceable”. The unique and irreplaceable thing, just like the Mona Lisa half-length portrait painting by Italian artist Leonardo da Vinci.
For instance, a bitcoin is fungible, trade one for another bitcoin, and you’ll have precisely the same thing. It ain’t a unique item, right?
How do NFTs actually work?
Most NFTs take a share amongst the Ethereum blockchain. Apart from being the second-largest cryptocurrency, Ethereum is a decentralized, open-source blockchain with smart contract functionality.
Undoubtedly, Ethereum is just like bitcoin or dogecoin, but its blockchain also supports these NFTs. It stores the chunks of extra information that makes them work differently from the rest of the frameworks. It is also worth mentioning here how other blockchains can implement their own versions of NFTs.
Unleash the Breathtaking trajectory of NFTs
Although NFTs have been revolving around us since 2014, they are gaining drastic notoriety now because they are spiking up to purchase and sell digital artwork across the internet.
Since November 2017, a staggering amount of $174 million has been spent on NFTs. NFT represents real-world objects like art, music, in-game items, and videos in digital collectibles. They are purchased and sold online, with digital currencies (aka cryptocurrency). NFTs are generally encoded with the same underlying software as many cryptos usually entail. NFTs score over conventional digital assets technology regarding security, cyber defense, reliability, and scalability.
Clear off the Skeptical Questions!
We'll go straight off with the most asked question; why to spend millions of dollars on artwork that anyone can view or download online: even the individual images and the entire collage of images online for free.So why are people dragging towards spending millions on digital art,
they could easily screenshot or download? The pretty simple answer to this question is because an NFT allows the buyer to own the original digital art. It also includes the built-in authentication, which serves as proof of ownership (this is what we were saying in the whole text that the ownership is unique and can’t be replaced). The Internet will have the same videos, but they aren’t the original ones.Let’s roll in an example: A monstrous dunk by Lebron James sold out as a digital trading card for about 208,000 dollars, but it is already on the internet for free. Think of an original MonaLisa painting and the Monalisa poster from a gift shop. It doesn’t hold the same value as the original one. Does it make any sense to you? The original video of Lebron James is a whole different thing. And Collectors value those “digital bragging rights” almost more than the item itself.
How is NFT Different from Cryptocurrency?
NFT- A non-fungible token is generally built using the same kind of programming as cryptocurrency as Bitcoin or Ethereum holds, but this is the only similarity it has. Why are NFTs different from Physical money and cryptocurrencies? Because they are “fungible,” it means they can be traded or exchanged for one another.
They’re also equal in value; one dollar is always equal to one dollar; one Bitcoin is always worth another Bitcoin.
The Similarity Ends Here!
The similarity ends here; Crypto’s fungibility makes it a trusted means of conducting transactions on the blockchain. NFTs are different because it has a digital signature as an engraving that makes for the NFTs to be exchanged or acquired with another NFT (hence, non-fungible).
One “Disaster Girl Meme” is not equal to the “Beeple’s every day” simply because they’re both NFTs. Here is where the concept “non-fungible” comes in; you just can’t exchange one digital asset (NFT) with another.
Let’s Talk about the Exclusive Ownership of NFTs
It’s worthwhile to share that NFTs can have a single owner at a time. NFTs’ unique data makes it easy to verify their ownership and transfer non-fungible tokens between the owners. The owner or creator can also store and occupy specific information inside them. For instance, artists can sign their artwork by including their signature in NFTs metadata.
Let’s Give it a Wrap Now!
We have been bragging about NFTs but let’s call the whole thing off as this is the sheer personal decision you can make. NFTs are a bit dicey as their future is uncertain. They can have a severe impact on your investments as NFTs don’t have much history to judge their performance. If you have money to spare for NFTs since they are new, we’d recommend you invest small amounts to try in the start.