A Brief Guide on Non-Fungible Tokens (NFTs) for Beginners

What are NFTs?

The NFT is the digital record on the blockchain, which can’t be tampered with or copied, and is attached to the music recording or artwork. NFTs, also known as “non-fungible tokens “or “non-fungible tokens, “ is described as a particular kind of crypto asset in which each item is unique. You can think of NFTs as certificates of authenticity for digital artifacts.

What Does “Non-Fungible” Mean?

While “non-fungible” is one of many, think of dollar bills, all valued equally and interchangeably. If you buy your lunch, the change you get back might be different coins than those in your pocket, but all are valued equally. Every dollar is worth just as much as any other dollar. Non-fungible is one of a kind and unique; there isn’t another like it in the world.

NFTs in the News

NFTs have been all over the news, with some going for insane prices. Here are a few different snapshots of what has been happening in the world of non-fungible tokens.

  • A 10-second video made by an artist, Beeple, sold for a whopping $6.6 million in February 2021
  • Christie’s Auction House sold a collage of 5,000 digital artwork by Mike Winkelman in early 2021 for an incredible $69 million.
  • A meme of the flying pop tart cat from 2011 sold for $500,000 on February 19, 2021, known as an animated Gif of Nyan Cat.
  • Musician Grimes sold her digital art for $6 million in early 2021
  • Twitter’s founder Jack Dorsey sold his first-ever tweet with bids reaching $2.5m

Why are NFTs important?

In 2020 alone, NFT sales have soared, reaching $338 million, and it looks like this is only the beginning. The beauty is that NFTs use smart contract tech, so creators can get a slice of sales if their work is bought repeatedly. Typically, each NFT sold is on the blockchain, using Ethereum, where anyone interested can track who created the piece, who bought it, and how much money it brought.

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michaelpaulyn

michaelpaulyn

Just a copywriter out to simplify the world of tech, one blog at a time.