What are NFTs or NFTs? How does it work? How do you create and sell it?

News about the so-called NFT or NFT has become one of the most popular news over the past period, as each time period appears for the sale of a photo, a music video, or even a Twitter tweet for large sums. in millions of dollars, but despite this, the term NFT is not yet a concept that most people have far from being associated with digital currencies or cryptocurrencies.

What is NFT?

And NFT is an abbreviation for non-interchangeable tokens or non-interchangeable tokens, but as it turns out, the phrase “non-interchangeable” is somewhat vague, in short, it means it is unique and cannot be exchanged for anything else. for example, digital currencies like Bitcoin It is interchangeable, as one currency can be exchanged for another with the same value, but for the NFT they are digital assets, each of which has a different value that cannot be exchanged for other assets.

While NFTs give a person proof of ownership of a digital asset (a photo, video, drawing, tweet, or piece of music, so that they can earn money from ownership or the right to own it), because the image or video, for example, is easy to get and hard to keep up After publishing online, owning an NFT does not necessarily mean that a person has exclusive rights because anything digital can be copied infinitely.

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To be clear, the NFT can be compared to the Mona Lisa, where anyone can go to the museum and see the painting and even take a picture of it, but he can not bring the painting home with him because he does not have it but the painting hanging on the wall in your home is like an NFT board because it’s all yours and you decide what you want to do with it.

What is the difference between interchangeable and non-interchangeable (NFT) arguments?

All digital currencies or cryptocurrencies like Bitcoin, Ether, Doge and other interchangeable tokens, where each currency can be exchanged for a similar currency, because both have exactly the same value, but for non-exchangeable tokens are NFT . is considered a form of digital assets, as unlike cryptocurrencies that have a monetary value, each NFT has a unique valuation that cannot be exchanged for another, as it is not possible, for example, to exchange a house with another house in the same street because it has the same area and the same number of rooms.

How do NFTs work?

Interchangeable digital assets (NFTs) are based on blockchain technology on which digital currencies depend, especially the same blockchain technology on which Ethereum blockchain depends, as the technology can store additional information that makes it function differently from Ethereum currencies themselves. , and other blockchain technologies may also offer special versions of their technologies also support NFT.

How do you verify the authenticity of your NFT?

Because of its reliance on blockchain technology, it is easy to track it transparently and verify its authenticity, as the technology records the full history of all its owners, and some view NFTs as a digital contract. as various digital contracts.

NFT sales increased from $ 13.7 million in the first half of 2020 to more than $ 2.5 billion in the first half of this year 2021, a 20-fold increase.

What forms of NFT can be sold to others?

In short, any digital asset or digital file can be sold or sold as NFT, including graphics, music, video, animated GIF, and any other digital format, but most non-interchangeable symbols are now associated with digital art, such as could be a tweet on Twitter. , where Jack Dorsey, co-founder and CEO of Twitter, has sold one of his NFT tweets for nearly $ 3 million.

Meme Doge sold as NFT for $ 4 million

NFTs could also be a meme or comic, as the “Doge” meme depicting a Shiba Inu dog was sold as an NFT or non-exchangeable digital asset earlier this year 2021 for about $ 4 million, the meme that inspired the creation of Dogecoin digital currency.

How to create a non-interchangeable NFT token?

While the value of immutable digital assets or tokens can reach millions of dollars, creating an NFT is by no means difficult. An image or GIF can be created in any way, including any drawing or graphic application. Edit photos Or Windows Paint, but the user must first choose the format – it can be any type of digital file – including text, music or video, and the more unique the better.

Once the user chooses what you want to put up for sale, you will need to know the blockchain technology you want to use or just the digital currency with which you want to connect your NFT, Ethereum is the most used cryptocurrency by NFT platforms, and the user may need some Ether or Ethereum to offer their NFT in a store, where these stores pay a fee for this, in addition to the OpenSea open source platform, which offers the process for free, but the user still has need a digital portfolio to create an account and register, and after registering on any platform for trading tokens or non-digital assets For NFTS, the user simply uploads the digital file and writes some details.

Celebrities like Snoop Dogg, Paris Hilton and even Edward Snowden have launched NFTs.

How do you sell your NFT after it is created?

Once the token you have created is listed on any of the platforms or digital markets, NFT is available for offer from others, but a fixed price can also be set on the sales page and the returns you want to get from the initial sale and subsequent sales .

In addition to OpenSea, there are many platforms or stores for trading digital assets or non-exchangeable tokens such as SuperRare, Nifty Gateway, Foundation, VIV3, BakerySwap, as well as Axie Marketplace, Rarible, NFT ShowRoom, NBA Top Shot and others.

Is trading NFTs the same as collecting works and objects?

As hard as it sounds to understand, some people actually think so, as one person paid nearly $ 390,000 for a 50-second video from Grimes, and another person paid $ 6.6 million for a Beeple video, and someone bought People wrote on Twitter Jack Dorsey, founder. of Twitter, for nearly $ 3 million.

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