NFT: What is it for and how does it work?

What are NFTs and why are they becoming popular?

Before describing what a non-fungible token (NFT) is, let’s start with the “fungibility”. It is the ability of an asset to be exchanged with another similar asset without compromising its value.

To give a simple example: 100DT has the same value as another 100DT. When someone lends you an amount of 100DT, you do not have necessarily have to reimburse it with exactly the same type of ticket, because a another ticket of the same value is worth the same amount. It’s obvious, but now we are on the same page.

In the world of cryptocurrency, one BTC (Bitcoin) has the same value as another BTC. Nevertheless, everything changes when we focus on the tokens not fungible (NFT).

A non-fungible token has a distinct value from another equal or similar NFT. An individual NFT has unique characteristics that dictate its particularity, it is a virtual certificate registered on a blockchain; hence the name “non-fungible”. They very similar to rare and precious stones, works of art and luxury items in general.

NFTs are becoming the focus of global crypto attention. an NFT is a special type of cryptographic token that represents a particular thing. Their value remains constant and can be exchanged between them. NFTs can be applied in the creation of verifiable digital rarity. They are particularly vital for all applications that require active ingredients specific digital such as digital art, digital collectibles and game assets.

NFTs are not new to the digital world, the first type token NFT was launched in 2012 when colored coins were introduced which were to be created on top of a Bitcoin network. Today, the most current of an NFT type token is ERC721 which runs on an Ethereum network.

Keep in mind that one NFT is unique from another, i.e. an NFT is equal to no other in terms of property or value. Each NFT particular is assigned a numerical hash distinguishing it from other NFTs of his type. This distinctive feature allows an NFT to serve as proof of origin. Today, the property, as well as the authenticity of its ownership intellectual property, such as original artwork, is highly valued.

Wondering how to create and sell an NFT?

An NFT can be sold on a marketplace, marketplaces, where exchanges are made only in cryptocurrency. Blockchain technology makes it possible to guarantee the security of transactions. As an artist, sell his works of art via NFT technology is a new way to get paid, without going through intermediaries.

To create your NFT, all you have to do is upload the file of your choice. The JPG, PNG, GIF, WEBP, MP4 or MP3 extensions are accepted.

To do this, you have to go through 3 steps:

1- Choose a blockchain for your NFT:

The first step is to identify the blockchain on which you want “minter”, i.e. register by having your NFT verified and timestamped.

The most used blockchain for selling NFT is Ethereum.

2- Have a crypto wallet to sell your NFT:

Once your blockchain has been chosen, you will have to create a portfolio of cryptocurrency, essential for carrying out transactions in cryptocurrency, receive your cryptocurrencies and exchange them for regular currency.

3- Choose a marketplace for your NFT:

Today there are many sites that allow you to create NFTs and then to sale. Among the best known are:

• Opensea
• Rare
• Shabby

These sites are therefore a kind of digital art online store, where the transactions are carried out in cryptocurrency.

NFTs are still at a nascent stage of their evolution, as an asset negotiable, and investing in it is very risky. They are volatile and require research appropriate before making investment decisions. It’s like investing in the cryptocurrency market in 2015. It could be an investment very lucrative if you do your research and invest smartly. But make sure you only invest what you can afford to lose.