WHAT ARE NFT's?
A Little Apology
Yeah, yeah, I’ve been away for a while life was really taking its toll on me I had to combine a lot but thankfully experiences makes you stronger. While I was going through a lot I committed myself to researching about the crypto space as it’s the new trend, and as we know knowledge shared is solidified and I’m putting this out there for some corrections and your inputs cause I know they’re many talented minds in this community and I am a strong believer of collective reasoning so please leave your inputs I’ll try to reply all with the little power I have so as to make it an interactive space and I promise to be here this time. Thanks for the love.
I’ll like to talk about NFT’S. While researching I realized how complex and boring most materials are when it comes to explaining crypto and I decided that I’ll try to break things down to an easily understandable level and try to make it really interesting. Before we start, I’ll like to put out there that this is not financial advice, the purpose of this is purely educational and recreational. So, let’s get to it.
What are NFTs?
First of all, what is this NFT you’ve been hearing a lot about well it’s an acronym that stands for Non-Fungible Token.
NFT’s are one of the most talked about topics these days and it seems like they have taken over the entire crypto-verse.
Many of us think it’s mostly digital arts but NFT’s were created with a very wide range of use cases in mind. Sit tight and keep reading because I’ll be telling you everything you need to know about NFT’s and their different types.
The rising popularity of NFT’s has gotten us asking questions like How can someone own something digitally unique when it’s been taken directly from the internet? And what is the type of stuff you can digitally buy, sell, or trade as NFT’s. To answer those questions, you must first understand what an NFT is and its characteristics.
NFT's Definition
cc@coinmetrics
NFT’s are any type of cryptographic token that represents a unique asset be it in the real world or in digital form which functions as a verifiable proof of authenticity and ownership within a blockchain network. I know the question on your mind so where does the non-fungible part come from well, they are non-interchangeable with one another which means they are unique and that’s the proof of scarcity which means proof that what you have is the only original one there is.
Characteristics of NFT's
- NFT’s are immutable
- Every NFT is unique
- They are provably scarce
- Counterfeit Resistant
- Have Intrinsic blockchain-backed value
TYPES OF NFT’s
NFT’s can function pretty much in any field outside the box of Art which is all the rage now. Maybe we can take early strides in them and get a head start before others catch on. Below is the list of the Various types of NFT’s:
ART NFT’s:
Digital Art is currently one of the most common and definitely the most Expensive forms of NFTs in the market this is because of all the publicity around NFTs with artistic element in them. This is a very welcome development because it solved a vital problem of copies of art being made and distributed easily. So a company named monegraph came up with the idea of creating a place where creatives can store their art digitally by generating a blockchain key connected to their art piece and store the value in a namecoin. This key gives artist access to a cryptographic proof that they are the creators of the art and gives buyers assurance that what they are getting is the real deal.
COLLECTIBLES/MEMORABILIA: Collectibles earned their fame from being rare which works hand in hand with our NFTs so it’s no surprise that the collectibles market has migrated to the digital space where their proof of authenticity can be verified at a glance.
SPORT MOMENTS NFTs: What better way to immortalize an iconic moment in sport than to store it someplace it can never fade hence a digital form. Top sporting industries have began investing heavily in these markets like the NBA which has Top shot a market place where iconic moments in basketball games can be bought, traded and sold right there, also the NBL and the UFC.
MUSIC NFTs: Have you ever thought about how much musicians make from you playing their song through streaming sites like youtube, spotify, and apple music? They make fractions of a dollar per stream imagine how smaller artiste with an audience that doesn’t rake in numbers are faring. NFTs provide a possibility of cutting out the middleman completely, it creates a more direct artiste to fan relations.
GAMING NFTs: This is another popular NFT class. They are NFTs gotten from playing games like Gamify and Playtoearn that are powered by axie infinity.
Domain names NFT: Yeah, you heard right domain names with the continuous move towards a digital world domain name have become an asset class of their own. Domain holders can literally own a piece of the internet grow it and sell it. So NFTs can aid domain names with additional proof of ownership qualities giving the holder access to a lot more economic opportunity.
Metaverse Land: Of recent there have been whispers of synthesizing a bridge between real world and web3 based metaverse oriented economies using NFT tech. Developers are embracing NFTs to construct their virtual land ecosystems opening up a new and innovative path for investors.
REAL ESTATE NFTs: The cumbersome process of buying buildings or land in real estate sector has brought forth the advent of NFTs. Imagine real estate being tradable online and you can be rest assured that you’re getting legitimate properties (because of the on chain verifiable proof of ownership) without the hassle of paper work and excess settlements of middlemen. Well this is still an ongoing process.
Fashion NFTs: Luxury brands are not left behind in the NFT fever as titans of the industry like Gucci, louis Vuitton, and adidas have also launched their own NFT collections. Of course, fashion would be digitized, the industry is an ever changing one. Dropping multiple collections for every season and what other way to immortalize this amazing creativity than NFTs.
Research from @Coinbureau