In this world of popular and widely discussed blockchain, non-fungible tokens or NFTs are one of the peaks of the current hype.
So what is NFT? Let's look at the following explanation.
A. What is NFT
An NFT is a unit of data stored on the blockchain, which certifies a digital asset (image, sound, video, animation files) to be unique.
Its uniqueness, of course, is a differentiator with ordinary tokens issued on certain blockchains. This is because NFT has an incommensurable nature, meaning it cannot be exchanged (non-fungible) with other assets.
For example, you upload a JPG image file on Binance NFT, then that image is stored and secured on a separate computer, including the file's binary data.The file is then timestamped, so that it has a special identity.
This is a kind of fingerprint that is unique to each other. A special code, using a smart contract, is generated automatically against that timestamp data.
This special code is called a token and is permanently stored on the blockchain. Thus, when a similar image file is re-uploaded, the system will automatically reject it and be considered invalid, because it was previously recorded on the blockchain.
This is what makes NFT unique. In addition, it also allows for added value for all works of art to be sold to the public.
As is well known, digital media can be easily replicated and redistributed. However, try to make a copy of the original Mona Lisa until the original brush strokes and paper are then converted into NFT.As did Jack Dorsey, creator of Twitter. He sold his first tweet in the world for US$2.9 million.
From here, more or less introduced many people to the world of NFT. Now all of NFT's creativity is in demand and sold like priceless works of art.
The next question is, is the NFT market only in the form of paintings like the digital Mona Lisa? Certainly not. Apart from tweets, pictures or paintings, there are many different types of these innovative assets.
What is in your imagination you can pour in any form, image, sound or other unique work.
B. Types of NFT
The definition of what NFT is is still pretty loose, because basically, anything can be NFT. Well, here are the more common and reasonable NFTs that are sold in the market, reported by Makeuseof, Sunday (3/10/2021).
1.Art
Art is the most popular form of NFT. Through the NFT concept, artists have the opportunity to sell their best work online, as if it were physical.
Currently, many of the most expensive NFTs are works of art.According to Luno, the most valuable NFT ever sold was called “EVERYDAY'S: THE FIRST 5000 DAYS” by the famous artist Beeple. This work was sold for US $ 69 million.
There are also other super-expensive NFTs that billionaires buy.This also applies to video artwork.Short videos, even GIFs have sold like hotcakes for millions of dollars. Notably, a 10-second video called “Crossroad” depicting a naked Donald Trump lying on the ground has sold for US$6.6 million, the art is also Beeple's work.
2. Music
Another high interest on the NFT spectrum is music. Music has been a commodity for decades, recorded and distributed on record, cassette, CD and digital form. However, musicians and DJs have been selling their work as NFTs lately and earning some of them millions of dollars in a matter of hours.
Musicians typically only pocket a fraction of the money their music makes due to streaming platform cuts and record label cuts.
But in terms of NFT, musicians can save about 100 percent of the money, which is why so many musicians turn to this method.
3. Memes
If you think the internet couldn't be more interesting, you can buy and trade memes on the NFT marketplace.
Yup! What's interesting is that in some cases, the person in the meme is the real seller.
Some popular memes such as Nyan Cat, Bad Luck Brian, Disaster Girl and others on the list sell for between US$30 thousand and US$770 thousand.
Meanwhile, the most valuable meme to date is the Doge meme, which sells for US$4 million.
4.Domain Name
Domain names are not safe from the spread of NFT fever. You can register a domain name and sell it on the NFT market, and that certainly brings some advantages.
Usually, you need to pay a third-party company to manage your domain name. If you buy it on the NFT marketplace, then you will claim exclusive ownership of the name, without intermediaries.
5. Virtual Fashion
Everything that is bought and sold on the NFT marketplace is virtual, so why should fashion have a different character?.
Like, you can spend a lot of money in a bomb bikini, but of course you won't actually be able to wear it. People who buy NFT fashion will dress up their online avatars instead.It might sound silly, but remember, someone on this planet spent US$4 million just to own a Doge meme.
Likewise with having a virtual handbag or necklace, of course everything will be uniquely designed and limited in number.
C. NFT Market Still Growing
There is still a lot to discover in the NFT market. From buying a digital baseball card to buying a virtual Versace bag, it opens up opportunities for everyone.The NFT market is still growing. People have bought many different things as NFTs and continue to open up to those opportunities.
Over time, the list will continue to grow, of course there will be more than 9 types of NFT, because of the uniqueness of this NFT.
You can already start trying, the market is open for anyone to make NFT!!
Good article