Non- Fungible Tokens NFT are the latest trend in digital assets as they're growing in popularity. In the past few months, the NFTs have seen many takers.
NFT enthusiasts think this is the next big phase of art collection, which can benefit both artists and art collectors.
The trading of NFTs started around 2017 but this latest digital asset gained popularity in early 2021.
It is surprising to know why NFTs cost millions of dollars. Here are the things that you should know about NFTs, how they work, and even how you can create your own NFT.
Non-fungible means that these digital assets can't be copied or replaced with something else. Each NFT has its own unique signature, and these are the digital assets on a blockchain.
The NFT's ownership and authenticity can be verified by those who want to buy it.
NFTs are not only digital art but they can be in the form of images, drawings, video clips, music or text. Even a signature can be bought or sold as NFTs.
NFTs use a new Ehtereum standard -Blockchain ERC 721. The NFTs are supported by the network, and it stores extra information to identify the unique assets and help them work differently from theEthereumCryptocurrencies.
You can buy NFTs with cryptocurrencies. A number of NFTs can be bought in dollars or fiat currencies. Every transaction of an NFT is recorded on the blockchain.
Many people think that the NFTs are a good investment because of the rising prices. Many buyers sell the NFTs within a few hours of purchase to gain from the price surge. NFTs are a new avenue for artists to monetise their artwork.
After the digital asset is sold for the first time, the creators of NFTs can get a royalty.