What is NFT? How does it work?

    How do NFTs work?

    NFTs exist on a blockchain, which is a distributed public ledger that records transactions. You`re probably most familiar with blockchain as the underlying process that makes cryptocurrencies possible. Specifically, NFTs are typically held on the Ethereum blockchain, although other blockchains support them as well. An NFT is created, or “minted” from digital objects that represent both tangible and intangible items, including:

    • Art
    • GIFs
    • Videos and sports highlights
    • Collectibles
    • Virtual avatars and video game skins
    • Designer sneakers
    • Music

    Even tweets count. Twitter co-founder Jack Dorsey sold his first-ever tweet as an NFT for more than $2.9 million. Basically, NFTs are like physical collections, only digital. Therefore, instead of painting the actual oil painting on the wall, the buyer will receive a digital file instead. It also acquires exclusive ownership. Correct Answer: NFTs can only have one owner at a time. NFT-specific data facilitates ownership verification and transfer of tokens between owners. The owner or creator can also store specific information inside them. For instance, artists can sign their artwork by including their signature in an NFT`s metadata.

    What are NFTs used for?

    Blockchain technology and NFTs afford artists and content creators a unique opportunity to monetize their wares. For example, artists no longer have to rely on galleries or auction houses to sell their art. Instead, the artist can sell it directly to the consumer as an NFT, which also lets them keep more of the profits. In addition, artists can program in royalties so they`ll receive a percentage of sales whenever their art is sold to a new owner. This is an attractive feature as artists generally do not receive future proceeds after their art is first sold.  Art isn`t the only way to make money with NFTs. Brands like Charmin and Taco Bell have auctioned off themed NFT art to raise funds for charity. Charmin dubbed its offering “NFTP” (nonfungible toilet paper), and Taco Bell`s NFT art sold out in minutes, with the highest bids coming in at 1.5 wrapped ether (WETH)—equal to $3,723.83 at the time of writing.  Nyan Cat, a 2011 GIF depicting a cat with a pop-tart body, sold for nearly $ 600,000 in February. And the NBA Top Shot sold over $ 500 million at the end of March. One LeBron James NFT Highlight has sold over $ 200,000. Even celebrities like Snoop Dogg and Lindsay Lohan are riding the tide of NFTs, releasing unique memories, artwork, and moments as NFTs.

    How to buy NFTs?

    If you want to create your own NFT collection, you need to get some important items.

     First, you need a digital wallet that can store NFTs and cryptocurrencies. Depending on the currency your NFT provider accepts, you may need to buy a cryptocurrency such as Ether. You can now buy ciphers using your credit card on platforms like Coinbase, Kraken, eToro, and even PayPal and Robinhood. You can then move it from the exchange to the wallet of your choice.

    When investigating the option, you need to remember the price. Most exchanges charge at least a certain percentage of transactions when buying cryptocurrencies.

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