Jack Dorsey, the billionaire co-founder of Twitter, raised an eyebrow when he put his first tweet for sale as an NFT. Many began wondering: what is an NFT?
The new kid on the block for cryptocurrency lovers is NFTs (Non-fungible tokens), which have taken the art and gaming world by storm. But what exactly are they? Lately, the term NFT has been flying around our crypto headlines following some record-breaking transactions involving millions of dollars. This post explains all that you need to know about NFTs: what they are and how they work.
What is an NFT?
An NFT is a special type of digital asset that is unique and holds value. It’s different from a cryptocurrency itself. Cryptocurrencies can be exchanged equally (one-to-one), but NFTs cannot be exchanged in the same way.
Think of it like this: if you have two identical cryptocurrencies, you can trade one for another without any difference. But with NFTs, each one is special and represents something unique. Just like a piece of digital art or a collectable item. You can’t simply swap one NFT for another identical one, because each NFT has its own distinct qualities, metadata, and value.
Whilst cryptocurrencies are like identical coins or tokens, NFTs are like individual, one-of-a-kind items that can’t be interchanged directly. Each NFT holds its own significance and value, making it a unique and special digital asset.
Think of it as a unique piece of digital art or collectable. Just like a physical collector’s item, an NFT holds extra information that sets it apart from ordinary tokens.
NFTs can take various forms, such as digital art or music files, stored in formats like JPG, GIF, video, MP3, and more. Instead of receiving a physical item, you get a digital file that represents the unique and valuable nature of the NFT.
How do NFTs work?
Just like most digital tokens, NFTs are part of the blockchain. An NFT token however has extra information. Therefore making them unique- and this is the most important characteristic because they hold value through this special feature. Just like physical art, NFT value is defined by the market demand.
However, this is not to say that there are only original versions of a specific NFT on the blockchain but copies could be made. All are considered valid parts of the blockchain, albeit at a lesser value than the original.
Anyone can create an NFT in a process called ‘minting’ and put it up for sale on a marketplace of choice. There are various platforms selling millions of different types of NFTs. Some of these platforms that sell NFTs include OpenSea, Foundation, VIV3, Axie Marketplace, etc.
Check out our NFT collections!
It would be rude not to mention whilst you are here that TheCryptoGarge.com (TCG) have a collection of NFTs. Read all about them here, and stay tuned for new artwork that we often reward to our users as a token of appreciation.
Summary
The creative world evolves continuously, and NFTs (Non-Fungible Tokens) have emerged as a groundbreaking innovation, transforming how we view and trade digital assets.
NFTs provide a unique opportunity for creators and enthusiasts. They can explore and acquire valuable digital footprints, that are bought and sold. These digital tokens have revitalized the realm of digital art, with their prices suggesting a promising future for collectables, including artistic creations.
