You may have realized that a good part of our life is already digital, right? We meet friends on social networks, hold meetings, attend virtual classes and buy products online, from brands that sell in e-commerce and invest in Digital Marketing .
NFTs are valued, involve multi-million sales, and are considered a powerful way to make money. NFT Development company They promise a revolution in virtual transactions, but despite this, many people do not understand this concept well and are somewhat apprehensive with so many promises.
So let’s better understand what this concept means and how you can take advantage of this new market.
Are you ready? Continue reading to understand all the secrets of NFTs!
What is an NFT (Non-Fungible Token)?
NFT is a public registry of authenticity and ownership of digital assets, made through blockchain technology.
The name is strange to most people, so let’s explain it further.
In the cryptocurrency market, a “token” is the digital representation of a financial asset, that is, a good that can be traded in the market.
When inserted into a blockchain, the token assumes the role of a contract, granting ownership — to whoever owns that token in the form of a digital asset protected by cryptography and existing only in a ledger. digital.
Now, we can better understand what a non-fungible token is: a contract that guarantees ownership and authenticity of a digital asset within a network of public records .
It is as if you bought the original Guernica painting by Pablo Picasso and you have the receipt of that purchase. The non-fungible token, it is worth mentioning, would be the invoice, the record of the transaction, not Guernica itself. This record, therefore, indicates the place where access to the original work is.
NFTs and Blockchains
Blockchain is not a company, nor a product, nor simply a system: it is a concept of data architecture that establishes a public registry of transactions .
In blockchain there is no regulation or centralized intermediation, it is the members of the network themselves, in a decentralized manner, who analyze and validate the transactions. When approved, they are recorded in blocks of encrypted data, which are chained together to create unique, immutable codes.
So, blockchain guarantees the security and confidentiality of transactions through cryptography and the decentralized network model. NFT Development Services It may seem strange, NFT Development services but it is this concept that has been used in NFTs and cryptocurrency transactions and is touted as the future of the financial market.
NFTs and cryptocurrencies
NFTs and cryptocurrencies are part of the blockchain and of this new universe of digital assets and transactions; they use encryption and are evaluated by the members of the network to certify their authenticity and guarantee the security of the transactions carried out with them.
There is a fundamental difference between these concepts: while NFTs are not fungible, cryptocurrencies are fungible , that is, they can be replaced by other assets of equal value, such as physical currencies.
NFT and metaverse
The metaverse is the new virtual reality we can live in for decades to come.
meetings with friends;
shopping in malls;
and much more.
NFTs grew 11,000% in one year. Is it a good idea for brands to consider them a strategy?
What is an NFT for?
NFTs serve to record the ownership and authenticity of digital assets on a public network. Through non-fungible tokens, the person records purchases in her name to ensure that she owns an original and authentic creation
What can become an NFT?
It is possible to register almost any type of digital production using non-fungible tokens. These are just some examples:
movies and videos;
social media postings;
To give you an idea of what has already been marketed as NFT, we will give you some examples, such as the first NFT in history: “Quantum”, by New York artist Kevin McCoy. It is a psychedelic animation in the shape of an octagon, with inner circles that flicker in fluorescent shades.
The work was sold in 2014 through a code that Kevin McCoy developed in partnership with programmer Anil Dash, with the goal of allowing artists to sell, track and take ownership of their digital works. In 2021, the work sold again for $1.4 million.
Another interesting example is the sale of the Nyan Cat GIF as an NFT. The animation, created by Chris Torres and first shared on YouTube in 2011, sold for 300 ethers (over $900,000 at current prices) on the Foundation’s crypto art platform.
In March 2021, Kings of Leon became the first band to release an album as NFT. The band created a series called “NFT Yourself”, which included a special version of the album “When You See Yourself”, access to audiovisual arts and benefits at the band’s shows. You can still find the items for sale on the OpenSea platform .