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Is NFT really worth the hype?

It's never too late to join the crowd and learn more about NFT.

What is NFT

Whenever you ask this question, the first answer you’ll get is that it’s a Non-Fungible Token. Like, hello! that explained absolutely nothing.

Non-fungible means unique. Meaning it can’t be replaced with something else. For example, one piece of art does not equal to another. For a clearer picture, let’s say the “Mona Lisa” painting does not equal to “The Last Supper” painting.

Non-fungible Tokens are a sort of cryptocurrency derived from Ethereum (ETH) smart contracts. In terms of inherent qualities, NFT varies from traditional cryptocurrencies such as Bitcoin. Bitcoin is a standard coin, meaning that all coins are equal and interchangeable. NFT, on the other hand, is unique and cannot be traded like-for-like, making it ideal for uniquely identifying something or someone. To be more particular, a creator can simply prove the existence and ownership of digital assets in the form of films, photographs, arts, event tickets, and so on by leveraging NFTs on smart contracts. Additionally, the author can receive royalties for each successful trade on any NFT market or through peer-to-peer trading.

Interesting, how does it work then?

Most NFTs are part of the Ethereum blockchain. Ethereum, like bitcoin and Cardano, is a cryptocurrency, but its blockchain also enables these NFTs, which store additional information that allows them to function differently from, say, an ETH coin. There are other blockchains that supports NFT, but Ethereum is the main one.

What’s a blockchain?

Image of Blockchain logo
Source: TechTalks Newsletter

Blockchain is a method of storing data in such a way that it is difficult or impossible to alter, hack, or cheat it. A blockchain is a digital log of transactions that is duplicated and distributed across the blockchain’s complete network of computer systems. Previously I mentioned that blockchain also enables these NFTs to store additional information. So, what are the additional information?  Well, they are all the record of transaction which has occurred and verifiable proof of what was sent and received. For example, the purchasing history, buyers’ information, and sellers’ information. Basically, all the receipts.

What can be sold as NFT?

NFT can be literally anything digital. From drawings, to tweets, music and Gif’s, there’s really no limit. The current buzz however is more about using the technology to sell digital arts. If you use social media, you’ve probably seen some people including celebrities changing their profile pictures to a digital art monkey. That’s their way of telling you they own this NFT.  

The bored ape Yacht club NFT
Source: The New Yorker (images courtesy Bored Ape Yacht Club)

It could get a bit awkward

The awkward part is that you can copy a digital file that someone has paid millions for as many times as you like, including the art that’s included with an NFT. NFTs, however, are intended to provide you with something that cannot be duplicated. The artist can still maintain the copyright and reproduction rights to the piece, just as he or she can with physical artwork. That was a lot of terms, so let’s simplify it. An Edgard Degas print can be purchased by anyone. The original, however, can only be owned by one individual (don’t worry if you had to google Edgard Degas).

How do I buy or sell NFT?

Buying and selling NFT is made easy through the NFT marketplace. There are many marketplaces where you can do the transaction.

Hmm…What do you mean a marketplace?

Basically, websites where you can buy and sell NFT are known as NFT marketplaces. These online stores are comparable to Amazon and eBay. You may simply buy and trade NFTs on this site, just like you do on those shopping websites.

Here are some marketplaces where you can trade them. PS these are the top marketplaces with top players in the game, however  there are others available.

  • SuperRare
  • MarkersPlace
  • OpenSea

Buying and selling NFTs is pretty straightforward. All you have to do is set up a crypto wallet and create an account on a marketplace where you want to purchase or sell NFTs.

Don’t worry, I’m going to teach you the step-by-step guide on how to buy NFT.