NFT- The New Hype
While surfing on the internet or any of the social sites, ever come across the word NFT? What does this word NFT mean? Well, the NFT stands for the Non- fungible Tokens, a kind of token used to represent the ownership of any non-interchangeable item which is unique and is one of a kind in the whole world. Too cumbersome right?
What is NFT?
To
make it more apparent, let’s just divide it into two parts viz non-fungible and
tokens. Fungible is something which one can easily substitute with its
identical one at the given price. A normal and readily achievable becomes irreplaceable
when you’ve got attached some emotional value to it, somehow becomes more significant,
more valuable, and scarcer, and ultimately became one of a kind which cannot be
easily replaced by any identical, no matter how unanimous.
Whereas
the ‘token’ is the certificate of ownership of that unique belonging, that
cannot be denied by anyone as having a permanent record in the ledger of
blockchain using something called Ethereum (A technology endowing the access to
digital money- through which you be able to make global payments).
Who are the
users of NFT?
NFTs
are being used by various artists, gamers, and brands across the globe. Every
day, new players are added to the NFT marketplace. For artists, NFTs provides a
platform for selling their artwork which ranges from quick-to-use Gifs to
bigger gorgeous artwork. For gamers, NFTs are changing the in-game purchases of
video games. Earlier, any digital asset introduced in the game belonged to the
gaming company. But now, with help of NFT, the ownership of the asset can be
shifted to the actual buyer. It means that these gaming digital assets can be
purchased and sold across the gaming platform with extra value applied based on
who has owned them along the way. Even Brands are considering NFT as an
important stream of revenue generation.
How are NFTs
traded?
Let’s
come to the trading part. In the case of NFTs, there would not be a single
person or institution, but hundreds of thousands of computers simultaneously be
tallying all the previous transactions and checking whether the person has
sufficient funds or tokens in this case, and a transaction gets recorded for
the same.
Why is it
Controversial?
Here
comes the controversy, at the time when the blockchain is being considered a
next-generation level of technology, it’s something where lots of systems will
be working at the same time 24*7, i.e., Ethereum which uses 33 TWh
(Terawatt-hour) of electricity which is almost as equals to the consumption of a
whole country Serbia.
What are the
marketplaces for trading of NFTs?
Choosing the best NFT marketplace
which suits one's art is very important. One needs to consider which platform
best suits the type of NFT created, is there any fee the marketplace will take
per sale, if yes then how much, and which blockchain it will use. Mostly
investors use Ethereum, while, some are opting for the cheaper gas fees (the
charge for creating the NFT) with a better carbon footprint of newer
blockchains.
Some
of the NFT marketplaces where one can create and sell NFTs, or simply buy and
collect new projects are as follows:
- OpenSea
- Nifty Gateway
- Rarible
- BakerySwap
- NFT Showroom
Conclusion
With
the boom of NFTs, came a wide range of unlimited possibilities and diversity.
Not just game collectables and digital art, NFTs have the capacity to represent
the virtual-world and become a new game-changer in this virtual economy. Adding
to this, NFTs growing popularity will attract more platforms, and it has given
creators immense benefits. More players will enter the NFT sector and
ultimately it filters through all areas of the economy.
Several experts and investors consider NFTs being in trend is nothing but the hype while some consider it as an investment option and a permanent change in the tech world. Permanent or not, investment option or not, can't be considered as of now as it's too early to have a say. But the technology changing phase so swiftly would surely lead to a great transformation in the upcoming era.
References
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