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What are NFTs in crypto ?

What NFTs are and how they work . Digital art and what crypto currency and Ethereum have to do with it.

NFTs or Non-fungible tokens, what in the crypto currency space are these things that have got people selling memes and digital art for millions of dollars ?

But lets not loose track here, because my description of NFTs is starting to sound like something majorly linked to CEOs of the biggest social media platforms when it is actually not — well, not entirely.

I now wish medium had memes so i could put the “wow” one right next to 41 billion, just to emphasise the 41 billion worth of the NFT market . But repetition means emphasis all the same. I know you get it.

Now you know that maybe you could get rich overnight by trading NFTs or may be not. Either way, i think it would be some sort of emotional abuse if i still kept the real secret, so here it is.

First of all, the word NFT is an acronym for Non-Fungible Tokens. Fungible means it can be exchanged for something else.

For instance one bitcoin can be exchanged for another bitcoin and it would be the same since its measured by its value and not uniqueness.

One euro equals one Euro right ?

On the other hand, non-fungible means it cannot be exchanged for something else , specifically due to its uniqueness.

So these unique tokens (NFTs) take the form of digital content , including but not limited to art, music, memes, images , videos , games or real world items such as land titles.

Lets look back at the Jack Dorsey’s tweet. There can never be another Jack Dorsey’s “first ever tweet”.

How i wish Da Vinci lived in the NFT error. We could have made a billion dollars together.

Digital art can be easily downloaded and shared, just like you could screenshot most pictures online and pirate music from a bunch of sites.

So why would a person be able to sell a picture or meme for millions of dollars ?

That is exactly where blockchain technology comes to bridge the gap and make certain things possible .

I am going to tell you exactly how , its gonna get a little bit “techy” but don’t worry i got you.

Technically speaking, an NFT represents ownership of a digital asset.

A blockchain is a decentralised publicly available database that stores records of transactions which cannot be altered or erased.

The functionality of a blockchain allows for verification of ownership of these digital assets (NFTs), and the record of ownership cannot be altered .One NFT can only be owned by one person and when it is sold, the certificate of ownership is transfered to the buyer.

This means that even if you can be able to screenshot Jack Dorsey’s tweet and had it for yourself like i did and now have it as an image in this blogpost.

It could never be the the verified original copy -the minted NFT, digitally signed by Jack Dorsey as the owner.

Smart contracts allow for automatic execution of a digital contracts when certain predefined condition have been met, hence eliminating the need for a third party to enforce terms of the contract.

Many market places (platforms where NFTs are bought and sold) for NFTs use the Ethereum network and its native crypto currency Ether to power their transactions.

Buying an NFT is as simple as buying any crypto currency, just a different marketplace.

Lets start with what you need.

1.You need some Ether, for the reasons i told you earlier. (Just checking if you really read everything up their, say hi in the comment section if you did)

And to keep it simple , you can open wallets with your crypto currency exchanges. I don’t need to tell you that after opening your wallet , you have to store some Ether in it.

Yes, the one that you bought or will buy from the exchange. You are smart, you already know that .

3 So now that you know what you need, the next thing you need to do is find or rather choose the market place where you want to buy your NFTs from. Again, there are so many.Just keep these three in mind- open sea, Foundation and SuperRare.

These four are top rated , i do not know exactly why , but all i know is that the multi million dollar sales i was rumbling about earlier happened on one of those platforms.

4 After this, sign up for an account with the market place you have chosen , connect you wallet to it . You are now ready to choose the NFT you would like to buy.

Good luck with you NFT journey, you need it because there is no guarantee that you will reap huge gains. And that is not the actual bad news, the real bad news is that you could loose your money.

But we wish you the best of luck anyway.

And if you don’t feel too bad loosing some of the money you can’t afford to loose, well crypto and NFTs must be your future.

The crypto universe is full of fads, we have seen them come and go. From overly hyped shitcoins to over anticipated new functionalities and utilities that somehow amount to nothing later when they get trapped in the blockchain trilemma.

And now we have NFTs shooting through the roof , memes being sold for thousands of dollars and you might be wondering if it is just another fad that will soon be over .

Well i am wondering too , but here is really what i know for now.

I told you to leave Mark Zuckerberg alone earlier, but lets bring him back here-just a little bit though.

It is reported that Facebook and Instagram are taking strides to integrate NFTs into there social media platforms. This will allow users create, display and trade NFTS on the social media platforms.

Also with realisation of metaverse getting closer and closer, it is reported that NFTs are going to be a huge part of metaverse. I will not really dive into this metaverse thing now.

I will just invite you to read my next article where i will break this whole thing down, bit by bit.

But all i am trying to say is that NFTs are not going anytime soon , if anything, they have a lot to do with the future and it is not that bad of an investment.

Just before you go !

I genuinely thank you for stopping by. Please do not leave the comment section under-utilised by not leaving a comment. Even if you just think my writing is Wack!

Have an XRP week.

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