NON FUNGIBLE TOKENS!
Non fungible tokens are the digital certificates of ownership of some particular asset. Several NFTs sold for millions of dollars, with one piece Pak’s “The Merge” selling for over $90 million. But after the collapse of the FTX everything including crypto went out of interest including NFTs.
To understand in an easy way NFTs are the digital certificates of ownership that are stored in the blockchains . In general anything can be encrypted inside a Non fungible token like music, art, blog or even your chai cup!
Fungible vs Non fungible
Let’s not drown in the encrypted terms. Imagine if a dollar bill is fungible because the bill is not something special or unique as it can be replaced by some other bill of its same kind… Now a dollar bill which is signed by Lionel Messi is a unique collection which is Non fungible in nature and cannot be replaced and now it’s worth will be more than its original value.
What is minting an NFT?
Minting an NFT means publishing it on the blockchain or even the process of creation of an NFT is called Minting. One must know how much he can pay and he must have a platform to mint these NFTs. Depending on how much one pays and the strategic platform he chooses, the uniqueness of the NFT will prove to be its success.
How to choose a marketplace for NFTs?
There are a number of marketplaces , look which one suits you . Consider the reputation of the platform, how big the community is, how much they charge per transaction and how user friendly they are. Some marketplaces have a way to authenticate its content creators to approve them as legitimate sellers. Be prepared to jump through certain hoops where you can get approved. Actually a gas fee is paid for every transaction that is made on the blockchain. At present Ethereum has the highest gas fee compared with the other chains.
PROS AND CONS OF NFT
Pros of NFTs include:
They provide a way to authenticate ownership and provenance of digital assets, such as artwork, music, and videos, which can help protect creators’ rights and prevent fraud.
They allow for the creation of unique digital items that can be bought, sold, and traded like physical assets.
They can facilitate new business models and revenue streams for creators and artists.
Cons of NFTs include :
They can be expensive to create and trade, and may not be accessible to everyone.
They have environmental concerns as they require a lot of energy to mint NFTs.
They raise questions about the long-term preservation and accessibility of digital assets.
Do you know ?
In NFT sales as a seller of your NFT you can set a percentage by which you can gain money even after the sales when a resale takes place in the secondary market by the buyer which never happens in traditional sales.
They are not yet widely understood or adopted, and the market for NFTs is still relatively small and volatile.
Considering the fact that in future NFT may be in use more than the cryptocurrencies in the blockchain platform we can expect a lot of development and opportunities in these non-fungible tokens. People buy NFTs as a part of their collection to feel unique in the society … This can move the users towards the more use of Blockchain as they trust them.