Non-Fungible Tokens: What are NFTs

What are NFTs: Non-fungible tokens (NFTs) have become nothing short of a global sensation, sparking discussions in the worlds of art, entertainment, and technology. In this article, we will explore the fascinating realm of NFTs, covering what they are, their uses, how people profit from them, the most expensive NFTs to date, their differences from cryptocurrencies, factors influencing their value, and the top NFT marketplaces.

What are NFTs

NFTs are unique digital tokens built on blockchain technology, which ensures their authenticity and scarcity. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible and interchangeable, each NFT is one-of-a-kind. or physical assets, ranging from digital art and music to virtual real estate and collectables. They are created using smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. NFTs are often used to represent ownership and provenance of digital This technology guarantees the uniqueness and traceability of each NFT, making them a powerful tool for creators and collectors alike.

What are NFTs used for

NFTs are used for a vast number of purposes including:

• Digital Art: NFTs have revolutionized the art world, allowing digital artists to sell their work as unique tokens. Artists can receive royalties each time their NFT changes hands, providing them with a consistent income stream.
• Music: Musicians and composers can release their music as NFTs, giving fans access to exclusive content or experiences. 
• Virtual Real Estate: In the world of virtual reality and gaming, NFTs are used to represent virtual real estate, which can be bought, sold, and developed within digital environments.
• Collectables: NFTs are the modern version of rare collectables, allowing people to own and trade digital versions of rare cards, stamps, and other items.
• Tokenized Assets: NFTs can represent ownership of physical assets like real estate, watches and many luxury goods.

How do people make money from NFT’s

• Creating to sell: Many artists and creators mint their NFTs and sell them directly on marketplaces, earning a commission on each sale.
• Trading: Some individuals buy NFTs with the expectation that their value will increase over time. They then resell them for a profit when demand rises.
• Royalties: Creators receive royalties each time their NFT is resold, creating a continuous income stream from their work.
• Gaming: In the gaming industry, NFTs can be earned or purchased within games, and players can trade them for profit.
• Investing: Some investors hold NFTs as part of their diversified portfolio, speculating on their long-term value.

5 Most expensive NFT of all time

The NFT market has witnessed some jaw-dropping sales, with collectors and investors willing to pay astronomical sums for digital ownership. Here are the top five most expensive NFTs to date:

Merge” by Pak – US$91.8M:

Digital artist Pak’s “Merge” creation fetched an astounding $91.8 million on NFT platform Nifty Gateway in December 2021. It set a new record for the most expensive artwork sold by a living artist.

The First 5000 Days” by Beeple – US$69.3M

Created by Mike ‘Beeple’ Winkelmann, this collage of over 5,000 pieces, generated daily since May 2007, debuted at Christie’s Auction digital art house in March 2021, becoming the fourth-most-expensive piece ever sold by a living artist.

Clock” by Julian Assange & Pak – US$52.7M

Created to raise funds for WikiLeaks founder Julian Assange’s legal defence, this NFT was a clock showing the duration of Assange’s imprisonment. The AssangeDAO, a group of over 10,000 members, purchased it for $52.7 million, highlighting the social impact potential of NFTs.

HUMAN ONE” by Beeple – Approximately US$29M

This NFT was sold at Christie’s 21st Century Art Evening Sale for nearly $29 million in November 2021. It was accompanied by a physical sculpture, a generative work of art with dynamic changes.

CryptoPunk #5822 – US$23.7M

As one of the very first NFT collections, CryptoPunks have become some of the most expensive and sought-after NFTs. This particular CryptoPunk was sold for $23.7 million in February 2022.

How is NFT different from cryptocurrency?

While both NFTs and cryptocurrencies are built on blockchain technology, they serve different purposes:

• Fungibility: Cryptocurrencies like Bitcoin are fungible, meaning one unit is interchangeable with another of the same value. NFTs, on the other hand, are non-fungible and unique, each representing something distinct.
• Use Cases: Cryptocurrencies are primarily used as a medium of exchange, a store of value, or a unit of account. NFTs, as discussed earlier, represent ownership of unique digital or physical assets.
• Interchangeability: Cryptocurrencies can be exchanged for one another or used for various transactions. NFTs, being unique, cannot be directly swapped with another NFT unless explicitly agreed upon.
• Scarcity: While cryptocurrencies like Bitcoin have a limited supply, NFTs derive their value from their uniqueness and lack.

What determines the value of NFT’s

The value of an NFT is influenced by several factors:

• Rarity: The rarity of the digital asset being tokenized is a significant factor. Scarcer items tend to have higher values.
• Creator: The reputation and popularity of the creator or artist can significantly impact the value of an NFT.
• Demand: The demand for a specific NFT can drive up its price. This can be influenced by factors like celebrity endorsements or media attention.
• Provenance: Knowing the history of ownership and the authenticity of an NFT can increase its value. Blockchain technology ensures a transparent and immutable record of ownership.
• Utility: Some NFTs offer unique utilities, such as access to exclusive content or events, which can affect their value.

3 Most popular NFT Market place

The NFT marketplaces are where buyers and sellers come together to trade these unique digital assets. Here are three of the most popular NFT marketplaces:

• OpenSea: As one of the largest NFT marketplaces, OpenSea offers a wide range of digital collectables, art, virtual real estate, and more. It is user-friendly and supports various blockchain networks.
• Rarible: Rarible is known for its unique governance model that allows users to have a say in platform decisions. It’s a platform for creating and trading NFTs.
• SuperRare: SuperRare is focused on digital art and is known for high-value sales of unique art pieces. It emphasizes the value of the creator and the rarity of the artwork.

Dtunes: Best app to sell Bitcoin in Nigeria

While NFTs have grabbed the headlines, cryptocurrencies like Bitcoin remain a fundamental part of the blockchain ecosystem. If you’re in Nigeria and looking for the best way to buy or sell Bitcoin, Dtunes is your solution.

Here is how to sell your bitcoin on Dtunes

Dtunes is a user-friendly and secure app designed specifically for the Nigerian market. It offers a seamless and efficient way to sell your Bitcoin and other crypto coins. Dtunes offers the best market price for crypto assets in Nigeria and their payment is instant. Dtunes is the go-to app for all your Bitcoin trading needs in Nigeria.

In conclusion, Non-Fungible Tokens (NFTs) have disrupted the way we perceive and engage with digital assets. Their diverse applications, from art and music to virtual real estate and collectables, make them a versatile technology with a promising future.

What are NFTs – What are NFTs – What are NFTs – What are NFTs