What is NFT, and how does it work?
In this article, we are giving you a simple explanation of NFTs. Keep reading if you come here to get the most straightforward answer possible. With the term web 3, there are 3 main words that people are talking about. It's crypto and NFT.
In our previous blog post, we talked about what Web3 is and how it will change the world. If you haven't read it yet, click here.
In this article, we are giving you a simple explanation of NFTs. If you came here for more technical details about blockchain technology, STOP reading now! Keep reading if you come here to get the most straightforward answer possible.
With the term web 3, there are 3 main words that people are talking about. It's crypto and NFT. Today we are going to talk about what NFT is and how we can use it. If you are from generation Y, you may think, what the F*** is this. But hold on a minute.
The following are the topics we are going to cover in this post.
- What is NFT?
- Where can I buy NFTs?
- What are the key features of NFTs?
- Do I need unique currencies to buy NFTs?
- Examples of NFT
- Why are people buying NFTs?
- Should I invest in NFTs?
NFT stands for Non-Fungible Token. You can see all the terms related to this word around the web, and you didn't come here for a technical overview? Did you?
FAQ
What is NFT?
Let me tell you a story here. Assume you are walking through a street. Now you see a land sale right above a beautiful hill. You think, "Wow!" this a great opportunity" I should buy this land.
Then you meet the landlord and do all the legal document work. Finally, the land is yours. No one can claim it because, by all means, it is yours.
While browsing the internet, we see various digital assets. Still, even if we buy them, there is no way to prove the authority.
Until now!
Thanks to NFT, we can buy any digital asset and claim ownership.
Can someone steal my assets/ ownership?
The simple answer is NO. It can't be done without great computing power.
How is this possible?
This NFT uses the same technology as cryptocurrency. Which we are going to talk about in our future articles. Simply we call it blockchain technology.
Where can I buy NFTs?
Well, many platforms have the facility to buy NFTs. Opensea is the most popular platform among all of them.
What are the key features of NFTs?
- Digital Asset: Every NFT comes with an authentic certificate created by blockchain technology that underlies cryptocurrency. It represents internet collectibles like art, music, games and etc.
- Unique: It can't be forged or otherwise manipulated.
- Exchange: We can exchange with cryptocurrencies such as Bitcoin, Eth, and Solana.
Do I need unique currencies to buy NFTs?
The answer is yes and no. Some platforms offer you to buy NFTs using USD, while others require exceptional cryptocurrencies to buy them.
Examples of NFT
Anything in the physical world could be an NFT in the virtual world.
- Arts
- Games
- Essays
- Domain Names
- Tickets
And a lot more
Why are people buying NFTs?
A lot of people consider NFT a safe investment option. I hope you all remember how Bitcoin came a long way in a short period. Most buyers invest in them because they believe the assets will hold value in the future.
Should I invest in NFTs?
Experts suggest NFT can be a good investment option. But no one can predict the future precisely, especially with web 3.0 since this new technology. I highly advise you to do your own research before doing anything stupid.
Summary
In most simple terms, NFTs are the way to own properties in the virtual world. Before NFT, we haven't had a method to own digital assets and claim the rights. With NFTs, it became a possible thing.
