The Source |How NFTs are turning digital art and other collectibles into unique verifiable assets
NFT, also known as non-fungible tokens are a cryptocurrency trend that’sbecoming mainstream. It’s gained even more attention after a tech company bought a piece of art by British artist Banksy, called “Morons (White)” for $95,000.
According to CNN, NFTs turn digital art and other collectibles into unique verifiable assets that are easy to trade on the blockchain. Although this form of cryptocurrency is not new, it is gaining more interest from art enthusiasts. In a report with CNN Artsy CEO Mike Steib explained more.
“Some of that interest is from people who enjoy supporting the work of independent creators by purchasing their works,” Artsy CEO Mike Steib told CNN Business. “Others are intrigued by the idea of taking a digital asset that anyone can copy and claiming ownership of it. The recent headline price records for NFTs seem to have been largely driven by newly minted crypto millionaires and billionaires looking to diversify their bitcoin holdings and more interest to the crypto ecosystem.”
If you’re still trying to understand what NFTs are, and how you can use them, we break it down for you with information from a CNN Business report.
According to CNN, Non-fungible tokens are pieces of digital content that are linked to the blockchain, which is the digital database underpinning cryptocurrencies such as bitcoin and ethereum. Unlike NFTs, those assets can be replaced or exchanged with another identical one of the same value, similar to a dollar bill.
NFTs are different because no two NFTs are the same, and reportedly use a certificate to prove it’s auhtenticity. They are usually used to buy and sell digital artwork that vary in the form of GIFs, tweets, virtual trading cards, images of physical objects, video game skins, virtual real estate and more.
CNN reports that any digital image can be purchased as an NFT. According to the media outlet, there are a few things to consider when buying one. Some things to consider are what marketplace to buy from, what type of digital wallet is required to store it and what kind of cryptocurrency is needed to complete the transaction. There’s several NFT marketplaces, some include marketplaces include OpenSea, Mintable, Nifty Gateway and Rarible. In addition to these, there are niche marketplaces for more specific types of NFTs, like NBA basketball highlights.
One thing to be mindful of are fees. The fees vary between marketplaces, meaning the energy required to complete the transaction on the blockchain. Some fees can include the costs for converting dollars into ethereum (the currency most commonly used to buy NFTs) and closing expenses.
According to CNN, NFTs are also sold on marketplaces and the process can vary from platform to platform. People can upload their content to a marketplace then follow the instructions to turn it into an NFT. From there, they would be able to include specifics such as a description of the work and suggested pricing. CNN reports that most NFTs are purchased using ethereum but can also be bought with other ERC-20 tokens such as WAX and Flow.
CNN reports that anyone can create an NFT. The only thing you need is a digital wallet, a small purchase of ethereum and a connection to an NFT marketplace. This will give you the ability to upload and turn the content into an NFT or crypto art.