If you’ve ever been online, you must have come into contact with the term “NFT”. The new trend encapsulated almost every sector and is huge beneficial for artists and collectors, but do you need to be a specialist to understand NFT?
What is NFT (Non Fungible Token), and how are people making billions out of it? How did Jack Dorsey’s first Twitter tweet get sold for $2.9 million? How can you make money from this?
What is NFT?
Non-Fungible Tokens (NFT) is an implementation of blockchain technology similar to cryptocurrencies. Non-fungibility refers to objects that cannot be exchanged for another item because they are unique. For example, one painting is not equal to another because they have different properties.
On the one hand, fungible items can be divided into smaller parts to form the same value, for example: A 100 £ note can be divided into five 20 £ notes or ten 10 £ notes. Hence they are fungible. And since a painting cannot be divided into parts and formed in bulk later, it’s non-fungible
NFT helps you create unique digital signatures that define the ownership of your assets. You can buy and sell these digital assets for real money, either using cryptocurrencies or other non-fungible investments.
Each NFT contains unique information like who owns the token and whether they’ve already been sold, making them distinct and easy to verify.
How NFT works? And the problem it solves
Tokens represent ownership of unique items. They’re called “NFTs” because they’re stored on a blockchain. Why is it helpful for you? Because tracking who owns digital files is tricky because they can be easily copied and distributed. So, how can we establish who the original owner was? NFT solves this issue.
For example, you create digital art on your computer by making it look like a painting. You can create an item from this. Your NFT has some information about it, including a unique fingerprint of a specific file (also known as a hash), a token name and a symbol. The token is then stored on a blockchain, and the artist walks around as its owner.
You can now sell that token by creating transactions on that blockchain. The blockchain assures that this information cannot be altered and keeps it secure. It also allows you track the current owner of tokens and how much they’ve already been sold.
Artwork itself has not been stored in the blockchain nor the NFT, but only its attributes, including a unique fingerprint (hash), symbol, and token.
NFT and the gaming world: Top 10 NFT game apps in 2021
NFT has a significant impact on the gaming world The term “play to earn” has become a trend in the world of blockchain gaming. It allows players more involvement and control, which creates a blockchain-based game where the assets are tied to a digital asset economy. Cryptocurrencies are used to pay gamers.
You can earn by creating digital objects such as swords and helmets for a video game and selling them to the highest bidder It helps gamers improve their creativity in the gaming industry and earn some extra cash. There will be a massive increase in the number of people playing these top 10 NFTs mentioned below in 2021 and 2022.