The non-fungible token also known as NFT’s are a certificate of ownership of a non-interchangeable item that is represented by data in form of blockchain. NFT’s can represent unique digital items or files such as pictures or art, audio, video, and others.
Since cryptocurrency or bitcoin has been the solution to digital currency, NFT’s can also be seen as the digital solution to collectibles.
NFTs have helped individuals in the creative industry to monetize their items properly and get good value for their creativity. Although some individuals have claimed that their creative work are been recreated or copied and sold as NFT denying the real owner the ability to earn from his creativity.
You can compare NFT’s to an autograph because the certificate simply shows that the person with it purchases the original copy of the content sold though, they may be other pieces of the content available elsewhere.
Although NFT’s is gaining more attention in recent time, they are lot of things most people don’t know about NFT’s before they go into the collectibles market. Here are some things you should know before going into NFT’s.
1. NFT’s CAN BE PROGRAMMED
NFT’s can be programmed, stored on transferred on exchange or wallet that is based on ERC-721 or ERC-1155 which is the platform that Ethereum is also based on the blockchain technology. Though ERC-721 is the most common standard for creating non-fungible tokens allow the creation of smart certificate with distinguishable with different properties, while ERC-1155 allows the creation of fungible and non-fungible token.
2. NFT’s DO CONSUME ENERGY
NFT’s require much energy in their creation. A lot of people are worried about the energy requirement of NFTs and how much it will impact the environment. Apiece of the carbon footprint of NFTS called ‘coronavirus’ consumed about 192 KWh in its creation which is equivalent to a European union resident’s entire energy consumption for two weeks.
3. NFT CAN BE CREATED AND SOLD BY ANYONE
Anyone can sell an NFTs which means anyone can create work then turn it into NFT on the blockchain and sell it via a marketplace. But the requirement for NFT and charges of NFT’s makes it difficult for anybody to venture into. To sell an NFTs you need to have crypto in your wallet up front, most of the platform charges a gas fee which is the price of energy required for the transaction, conversion, and commission fee which may latter make the NFT too expensive.
4. NFT ARTISTS CAN RECEIVE FUTURE ROYALTIES FROM THEIR ART
Creators of an NFTs content can attach a commission to his NFTs which he will receive when they are further sales of the content.
5. NFT’s ARE REALLY NON-FUNGIBLE-TOKENS MEANING THEY ARE LEGIT DIGITAL TOKEN CODES
When a buyer buys an NFT, the buyer is not majorly purchasing the content but purchasing the token attached to the content to show the real owner of the content. Many digital content such as images, eBooks, audios, and others can easily be reproduced by adding just copying and pasting the content but NFTs shows the legal purchase of an item.
6. TERMS AND CONDITIONS
Terms of purchasing an NFTs are listed by the market in which the NFTs are listed. It is left with to the buyer to agree to the terms of purchase before buying the token.
7. CONTENT CREATORS AND ARTISTS CURRENTLY CREATE 95% OF THE NFT’s OUT THERE
Majority of people who benefit from NFTs are content creators, game producers, sportsmen or athletes, musicians, and many more. They are no limit to what you can sell as NFT so far you have tangible non-fungible digital assets.
8. EVEN TWITTER TWEETS AND SOCIAL MEDIA POSTS CAN BE TURNED INTO AN NFT
Social media post can also be sold as NFTs, such as in the case when Twitter C.E.O and co-founder jack Dorsey sold the first-ever tweet for about $2.916 million
9. THE FUTURE OF NFT IS GOING TO BE TOKENISATION OF PHYSICAL GOODS
New digital items used physically by men are now been sold as digit assets through NFTs such as virtual jewelry, accessories, clothes, furniture, and real estate. The NBA has digital collectibles known as NBA Top Shot which is assets related to iconic moments in the NBA game.
10. THE 1% RICH ARE CURRENTLY BUYING MOST OF THE NFT’s.
NFTs are considered luxury items bought by the rich. Most NFTs are always expensive and are always usually in millions of dollars such as in case where Christie sells an NFT by digital artist beeple for $69 million which is the new record for digital art sold.
In recent time they is not a week without a piece of news about NFTs, although NFTs are currently soaring than expected. Although many people think that it is a bubble that would soon burst. but NFTs exceptional growth has continued to prove people wrong that it is here to stay.
Most environmentalists and people who advocate for climate change are against the soarness of NFTs because of the huge energy required for it and the environmental effect of generating this energy. Although due to the huge demand for NFTs by the rich and success of bitcoin in blockchain technology the NFTs have come to stay.