What are NFTs and where to find them
Cryptopunks, Cryptokitties, Beeple, Play-to-earn games such as Axie Infinity are the current trend in the crypto space. People flipping digital art and employees submitting their resignation forms to play online games that give them daily profits, but what actually are they exactly and how do I start? I share to you a guide and how to get in the NFT space and what sources can we go to. Here’s what we’ll talk about:
- What are Non-Fungible Tokens (NFTs)
- What are NFTs for?
- Are NFTs good long term?
- What NFTs are good?
- Where do I buy NFTs?
What are Non-Fungible Tokens? (NFTs)
An NFT is basically data stored or accounted for in a digital ledger, and that data represents something specific and means an NFT is not the same as the other. An NFT can, for example, represent a piece of art, a music album or other types of digital files and are bought or sold usually in cryptocurrency.
NFTs reside in different blockchains with smart contract capability. In Ethereum, instead of calling them ERC-20, we call them ERC-721 or ERC-1155. Below is a comparison of Fungible and Non-fungible tokens
What are NFTs for?
NFTs provide two important things. Ownership and Control. Each NFT is unique in their own way and held solely by the owner (in a wallet). The current applications used by NFTs are Digital Art, Collectibles and Games.
Wait Digital Art? Can’t I just screenshot this then make another copy?
NFTs utilize Blockchain Technology where all transactions within the Blockchain can be viewed being it an open digital ledger. Each NFT has their own Hash ID and can be verified on the Blockchain (copy no more!). Though your NFT is not Physically present, you can show if off via online through digital applications such Decentraland.
NFT Games is such a crazy idea
It sure is! Playing games while earning is a crazy idea but its happening. NFTs make perfect sense in the gaming industry as it allows gamers to be proprietors within the game. Axie infinity, a game within the Ethereum chain where you breed pets called Axies and battle them to earn profits, is creating a new branch of profit earning with top players reportedly doing SLP1,500 ($300) per day. Read more on this here: https://theconversation.com/axie-infinity-online-games-where-people-earn-as-they-play-are-transforming-gaming-164881#:~:text=Top%20players%20are%20reportedly%20earning,while%20the%20going%20is%20good.
Are NFTs good long term?
NFTs actually started since 2014 but only recently have we seen exuberant growth. Buying a jpeg art called Cryptopunks last 2017 for 0.2 Ethereum ($500) are now sold for $5M to $7M. While the current gains of NFTs are crazy, I do still believe we have a lot more room to grow as companies have started taking attention such as Warner Music Group, NBA, Coca-Cola and Nike. NFTs for online interaction, digital entertainment and virtual reality are developing at a rapid pace! Oh and did we mention Mila Kunis’ “Stoner Cats” NFT sale totaled $8Million?
What NFTs are good?
There are a whole lot of NFTs to choose from with different digital artists expressing their creativity. I honestly can’t say which one would be the best but I can recommend to choose NFTs that relates to you whether it be in art, collectibles or games. I do have a bias with pioneer NFTs such as Cryptopunks or the Meebot but I enjoy exploring new platforms such as spaceshibes or MyDefiPet.
Where do I buy NFTs?
NFTs have marketplaces such as opensea.io or rarible.com. You can also see which NFT games are trending per blockchain at Dapp.com. When searching for new NFTs, Google or Cryptotwitter is your friend. To purchase NFTs, you will need a digital wallet. I recommend you install metamask (metmask.io) or Exodus (exodus.io) in PC or mobile to get started. Purchasing in NFTs in the Ethereum Blockchain will require you to spend for gas fees paid in Ethereum so make sure you have a balance to pay gas fees.
In summary, NFTs have been the trend this summer (I’m calling it NFT summer) and will continue to grow given the potential use case within the metaverse. Soon enough buying tickets to watch your favorite artist, or the certificate of registration of your newly purchased vehicle will be in a form of NFT.
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