Have you heard of NFT? Well, I can bet you would have. NFTs are currently one of the most talked-about topics. And maybe one of the richest topics discussed today. But if you haven’t heard of the term yet, you might be a few steps behind the fast-growing world. To help you cope with the modern speed, we have brought this short, simple, and effective guide for you where you will get all the important information regarding non-fungible tokens i.e. NFT.
To give you an idea of why you should read the guide, here are some stats regarding non-fungible tokens.
- More than $41 Billion worth of crypto has already been invested in the NFT marketplace
- The most valuable NFT till now is worth more around $91.8 Million
- The trading volume for NFT rose around 704% in Q3 and Q4 in 2021
Now you would have got an idea of the value NFT brings along. Let’s head to our guide to know more about this.
NFT Meaning
I have seen a lot of people considering non-fungible tokens the same as cryptocurrencies. Well, they simply don’t know NFT meaning.
NFT stands for non-fungible token and it is a type of unique digital asset. They are cryptographic assets on a blockchain with unique identification codes and metadata that make them unique.
A non-fungible item means that its value cannot be interchanged or replaced. For example, cryptocurrencies such as bitcoin are fungible. It means that one bitcoin will contain the same value as another bitcoin, like physical money. But on the other hand, you can’t replace the value of your furniture with another piece of furniture. Every piece has its own value. Similarly, every NFT represents unique ownership of unique digital assets like arts, collectibles, and even real estate.
Non-fungible tokens are used for commercial transactions because they are non-fungible items.
But Why are NFTs So Popular?
NFTs have become one of the most popular digital assets today, but why? What are the reasons that make NFTs so popular?
The major thing that makes these items so popular is their non-fungibility. An non-fungible token is also created by blockchain, from which cryptos are created. The blockchain created a time-stamped permanent and publicly accessible record of decentralized data.
An NFT, also known as nifties, can be used to represent real-world items like art, real estate, music, and many more. A user can buy or sell an NFT after creating it using cryptocurrencies such as bitcoin, ether, or dogecoin. Though anyone on the internet can view an NFT, its owner will have a special buyer badge that gives him the bragging rights to that digital asset.
What Can You Do With an NFT?
You can use an NFT to prove ownership of any digital art, item, or real estate. Also, before selling your item, you can add royalties to it so you can earn some percent of its sales in the future as commission.
How Do NFTs Work?
Mostly, NFTs are created on the ethereum network and are stored there as well. Even if you want to remain anonymous or pseudonymous, the ownership of a non-fungible token can still be traced and verified.
An NFT can have only one owner at a time. The ownership of the digital token is exchanged through its uniqueID and the metadata that cannot be replaced by other tokens. As these are mostly created on the ethereum platform, they are supported by smart contracts that make the ownership and transferability of the item secure.
The Most Popular NFT Art Pieces of 2022
Below, we have listed the top 10 NFT art pieces that are holding the highest worth in 2022.
- Bored Ape Yacth Club
- Crypto Punks
- Pudgy Penguins
- Decentraland
- Doodles
- Autograph.io
- The Galaktic Gang Collection
- Axies
- Meebits
- Proof of Beauty