Did you already see some strange 8-bit looking (some are really ugly) digital artwork? Perhaps you have came across an NFT. NFT aka non-fungible token. At a basic level, an NFT is a digital asset that links ownership to unique physical or digital items, such as works of art, real estate, music, or videos. It’s unique and can’t be replaced with something else. For example, a bitcoin is fungible — trade one for another bitcoin, and you’ll have exactly the same thing.
Its good to understand that the NFT’s are based on subjective values, meaning the value someone is giving to something based on a persons:
-
beliefs
-
perceptions
-
and preferences
A great example are the Baseball cards: “The Honus Wagner”, is the most expensive baseball card in the world, Cost: $3 Million – Would you pay $3 Million for just a card? Or would you pay that for just a piece of paper? Or do you prefer to buy a house with $3 Million? This is all based on subjective values, what value you give to it. Some people indeed will pay $3 Million to get their final collectors item. So as you can see, there exists a market for these items, with highly subjective value.
So a non-fungible token is simply a representation of a unique digital asset that can’t be equally swapped or traded for another NFT of the same type.
As I already mentioned, non-fungible tokens can represent digital art, a ticket to an event, an in-game item, property in a virtual world, or even a real-world asset like a deed or title to actual land in the physical world. So pay attention because this is where the eureka moment will start to sneak up on you. Because you will see how blockchain adds unique properties to digital assets by giving people ownership, management permissions and transferability on a decentralized, transport and immutable platform.
An example is below NFT, would you buy this and or sell it? How much do you believe you can make on this?
Let’s check out www.opensea.io which is an NFT marketplace, or place where people can buy, sell, trade and exchange non-fungible tokens. There you will find a different overview of NFT’s like: art, domain names, virtual worlds, trading cards, collectibles, sports and utility. All things you will find to buy, own and use in a digital world.
Will you give it a try? I suggest to first read a lot about it because its some time investing and a bit different comparing to buying bitcoins. Someone I recommend to follow is Punk2476 at Twitter.
I believe I should create an Unicorn NFT, what do you think?
