Digital assets are growing in popularity and non-fungible tokens (NFTs) are the latest trend. In recent months, many recipients of NFTs have emerged.
These unique digital assets exist on the Ethereum blockchain. NFT enthusiasts see this as the next big stage in art collecting, which can benefit both artists and art collectors.
Trading of NFTs started around 2017, but this newest digital asset is gaining popularity in early 2021.
Why NFTs cost millions may surprise many. Here’s what you should know about NFTs, how they work, and how to create them.
What is NFT?
Irreplaceable means that these digital assets are unique and cannot be copied or replaced with something else. These are digital assets on the blockchain, and each NFT has its own unique signature.
People who want to buy an NFT can verify the ownership and authenticity of the NFT.
NFTs are not just digital art, they can also be in the form of images, drawings, video clips, music or text. Even tweets and signatures can be bought and sold as NFTs.
How do NFTs work?
NFTs use the new Ethereum standard blockchain ERC-721. The Ethereum blockchain supports NFTs, which store additional information to identify unique assets and help them work differently than the Ethereum cryptocurrency.
How to buy NFTs?
You can buy NFTs with cryptocurrencies. Some NFTs can also be purchased with USD or fiat currency. Every NFT transaction is recorded on the blockchain.
Are NFTs a good investment?
Due to the rising price, many consider NFTs to be a good investment. Many buyers even sell NFTs within hours of buying to profit from the price surge. NFTs are also emerging as a new way for artists to monetize their work.
Creators of NFTs also receive royalties on each transaction after their digital assets are sold for the first time.