Are you new to NFT and want to know more about it? In this article we have covered common questions like what is NFT, what are its features and benefits, and why is it trending now?
Over the last 10 years, the world has seen technological advances that have revolutionised our society. From Artificial Intelligence and Augmented Reality to Blockchain and Meta Verse, it has made the digital space more dynamic and opened up new opportunities for passive incomes. Cryptocurrency is the first example, which has provided new means for passive revenue.
Following the trend, a new concept known as NFT has started mincing its way into the world of technology. The data show that by the end of 2021, the volume of the NFT market has reached $27 billion and is expected to increase further over the next few years.
Since this concept is new to the world, the lack of information is costing hugely to the people. This has given rise to unnecessary speculation and confusion over the NFT. In this article, we covered key areas that will help you better understand NFT. Whether you want to buy NFT or just want to build up the knowledge we have covered all the basic information.
What is NFT
Non-Fungible Tokens or NFTs are encoded with blockchain technology which is nothing but the unit of data that is stored in the clusters of networks. The data are stored in the form of files including video files, audio files, images, or GIFs. All these files are first converted into token through blockchain technology and listed on the NFT marketplaces. Some of the major NFT marketplaces are OpenSea, Rarible, Binance, and Nift Gateway. The best part about NFT is that it is a non-fungible token, which means it cannot be exchanged with other items. These tokens are encoded with similar underlying software as that of cryptocurrency.
How NFT is different from cryptocurrency? Unlike cryptocurrencies, NFT cannot be exchanged in equivalence. Plus, it cannot be sub-divided into small forms like Ethereum and Bitcoin. This makes NFT tokens unique and rare and as a result, supply is limited.
Digital art has taken by storm after NFT came into the picture. Popular personalities are receiving huge bids on their NFT artwork. Mike Winklemann, one of the popular digital artists sold his digital art composites, ‘EVERYDAYS: The First 5000 Days’ for $69.3 million as NFT which broke all the records.
Now the question arises, anyone can take a screenshot of the individual image so why purchase NFT artwork? The unique codes serve as proof of ownership to the individual, thus making each NFT unique and scarce.
What are the features and benefits of NFT?
The features of NFT are what make it one of its kind. Here we have included 5 features that make it unique.
1. Unique Code: Every NFT token is encoded with a unique code on the blockchain. Unlike cryptocurrencies, NFTs are not fractionalized in small numbers.
2. Scarce Resource: NFTs are non-fungible tokens which means they are non-interchangeable assets. These are unique and cannot be duplicated.
3. Ownership: The transfer of each NFT ownership is guaranteed because of blockchain technology.
4. Indivisible: NFTs are non-divisible, meaning they cannot be broken down into small forms like Bitcoin and Ethereum.
5. Fraud Proof: Cryptographic assets are minted and exchanged on blockchain technology. Each transaction record is monitored by multiple computer networks and all transactions are stored in the public ledger that users can access. Blockchain technology makes NFT trading fraud-proof.
Benefits
NFT is not limited to just buying and selling digital artworks. It has more potential that is more profound than just the JPEG collection. We listed here the main benefits that will help you to better understand them.
1. Secure Platform: The blockchain provides a secure network for the NFT trade. In contrast to traditional art collections where the risk of a transaction is high, the NFT business is secure.
2. Provide authenticity and transparency: NFT serves the proof of ownership and authenticity to the seller and creator. All transactions are available in the public domain, making it easy for the purchaser to track transactions.
3. Easily accessible: To transfer and maintain the traditional art you need to incur a good amount of money. On the other hand, the cost of maintaining the digital artwork is zero and the transferable cost is comparatively lower.
Why NFT is trending now?
Until 2021, few people knew about the NFT. It started to grow in popularity in early 2021 and quickly became the headline in the tech world. Giants from around the world began to express their interest in this new technology. Many big news channels and newspapers like Telegraph, The Tribune, The New York Times, etc actively covered NFT.
Artists around the world have benefited greatly from the NFT. Currently, Pak, an anonymous digital artist has received the highest bid for the digital art named ‘Merge’. Merge was sold for a whopping $91.8 million. Not just artists, but tech giants like Jack Dorsey, Twitter’s CEO, sold his first tweet for $2.9 million.
Such news and information made NFT more popular to the people and motivated them to try their luck in it. Some people are minting NFT while others just want to buy NFT collections and sell them for profit.
How can you approach NFT?
Well, the sole responsibility is on you whether you want to be a creator or a trader. Minting NFT takes more effort than trading. If you are an artist and willing to sell NFT art in the NFT market, then this is the right time.
However, if you are looking for NFT collections to start your NFT journey, then Krazy Kong NFTs is for you. The collections of Krazy Kong NFT present the portraits of the different personalities of Kong and its desire to integrate into human society. We are soon to launch our NFT collections on various NFT marketplace like OpenSea, Rarible, and so on.
You can get all the latest information including launching date, special benefits, giveaways, and much more exciting news of Krazy Kong NFTs on our Discord server.
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