What is NFT? Here's the explanation, how to make it to sell it
What is NFT and how to make and sell it will be discussed in this article. The fame of the Non-Fungible Token or NFT is now unstoppable because of the viral photo of a man who was sold at a high price as an NFT. Yes, NFT is indeed a digital asset based on blockchain technology that is currently popular in the crypto world. The reason, the value can reach tens of millions of USD.
For the most part, NFTs are traded using ether (ETH), the coin created by Ethereum. As the name suggests, "non-fungible", NFTs are digital assets that represent valuable goods with a value that cannot be exchanged or replaced. Each NFT contains a transaction record in the blockchain that contains data on its creator, price, and ownership history. Departing from cryptocurrency, NFT has different forms, purposes, and uses than other crypto assets, such as Bitcoin. This is because each NFT is only created once and cannot be exchanged or traded with other goods.
Because the value is not considered commensurate.
NFT has unique data such as fingerprints that work to make it easier to verify the owner. NFT owners can also store certain information such as placing a signature on their artwork by entering it into the NFT metadata.
Very limited, NFT ownership is also absolute. The owner is the sole owner of the original NFT work although he owns the copyright to reproduce the work. The owner of the NFT has full ownership rights.
Not only that but NFT also cannot be divided into smaller denominations, such as wei ETH or satoshi BTC. The reason is, they exist as a whole exclusively. In 2017, NFT has started to become popular. There was a time when the first NFT game was launched, namely CryptoKitties based on the Ethereum blockchain. This game allows players to adopt, raise, and trade virtual cats.
The NFT market is experiencing rapid development starting at the end of January 2021.
One of the factors behind the increase in NFT trading volume was the launch of NBA Top Shot by Dapper Labs, the creators of CryptoKitties. Since then, the power of NFT as a digital collection medium has emerged and this product has suddenly become popular.
The popularity of NFT itself is still very limited in industry, hobbies, arts, or entertainment. This is because users and fans perceive NFT as a new era of digital collections where they can support their favorite artists, athletes, and musicians without a third-party intermediary.
NFT also allows creators, artists, or musicians to benefit directly from their work because there are no third-party cuts. For example, snippets from record companies, distributors, publishers, and others. With NFT, works published online will be more secure because the content will not be easily spread freely and claimed easily. This of course minimizes the loss of the maker. There is a guarantee for the artist of ownership of his work and this will fight creative theft to plagiarism.
Prices of NFT assets in this sector have reached super high prices. Beeple's "Everyday-The First 5000 Days" became the most expensive NFT work, selling for USD 69 million (Rp 986.7 billion/exchange rate of Rp. 14,300 per USD) in March 2021.
2. Business Context
- Sports and Fashion Industry
Enter through the NBA Top Shot collection card when fans can collect important footage of their favorite matches, the Jupiler Pro League to the Belgian football league have also partnered with gaming companies for NFT.
It was Ubisoft and startup So rare that launched this NFT-based fantasy soccer game.
- Ticket and Membership Industry
NFT offers a solution to the problem of brokers buying as many tickets as possible for resale and cases of fraud through brokers or other services when tickets are easily counterfeited. The NFT's identification and verification system make it immutable.
One company that uses NFT as a membership card is Kraken Kratom which prints five NFT images to give its users special discount coupons or lifetime discounts.
- Property certificates, licenses, assets
Physical assets such as proof of ownership of a house or other property can be linked to an NFT. The blockchain system will store physical ownership certificates with a fast verification process. Unfortunately, the implementation of NFT, in this case, is still very limited. As many have shown previously, the NFT-based gaming market is one of the promising sectors in the crypto world. Some very popular NFT games are CryptoKitties and Axie Infinity.
- Collection
Apart from games, NFT is also used in the collectibles market. This is because the current NFT market is dominated by goods that are intended to be collected. For example, such as footage from NBA Top Shot, CryptoKitties virtual cat, to CryptoPunks' unique avatars. The price of these three items can reach millions of dollars.NFT Coins By Market Cap
1. Axie Infinity (AXS)
2. Tezos (XTZ)
3. The Sandbox (SAND)
4. My Neighbor Alice (ALICE)
How to Buy and Sell NFT?
Many marketplaces sell NFT. These digital marketplaces typically offer NFT in various forms. As per the platform, you can use crypto assets to buy NFT. For example, like CryptoPunks, Raible, or OpenSea which only accept payments in Dollars and ETH. Meanwhile, sites like NBA Top Shot give users the freedom to pay through several types of crypto assets.