NFTs: Bridging the Physical and Digital

NFTs aka Non-fungible tokens are cryptographic tokens. It is any digital asset that represents arts and collectibles like digital arts, videos, gaming, etc., Each NFT is unique, stored on the blockchain, and can’t be replicated. NFTs add more power to the creators by providing ownership rights for their creation with a unique digital signature. The uniqueness cannot be forged and thus secures the creation’s originality. You can buy, sell and store NFTs.

How does it work?

NFTs are digital assets that are stored on a distributed ledger system that is blockchain. As the NFTs can be bought and sold, the blockchain stores record all the transactions that take place. In detail, it stores data like asset ownership, authenticity, origin, and digital signature. The blockchain keeps the unique token values with other valuable information. Like other artworks, NFTs can also be bought and sold. It’s easy to verify the ownership and transfer the ownership tokens.

When you purchase an NFT, you will receive a digital certificate in the means of the ownership that blockchain stores. The certificates you received are cryptographically secured and it is not possible to make alterations or duplications without the owner’s consent. The ownership can be transferred by transferring the received digital certificate for the asset you bought. The value of an NFT depends on its usage, scarcity, and creator’s identity.

Popular Examples of NFTs

  • 1. CryptoKitties: A Collectible game. Here users can buy, sell and breed unique digital cats.
  • 2. CryptoPunks: An art marketplace in digital to sell, buy and trade pixelated avatars.
  • 3. NBA Top Shot: It is a basketball-centric digital marketplace to purchase collectibles of favorite players and moments.
  • 4. Decentraland: It is a virtual world to buy, build and sell virtual real estate and provide experience for the users.
  • 5. SuperRare: SuperRare is a platform to showcase digital artworks and sell them as NFTs.

Uses of NFT

The most common use of NFTs is in arts and collectibles. Rather than that, there are many different areas NFTs are used like digital content, gaming items such as special characters and cards, investments, and domain names. In content publishing, the creators have ownership over the content. NFTs in gaming lets players buy items for a character and resell the character once they’re finished with them. You can buy a domain name in NFT. As well as you can use the NFT to issue a digital certificate for the asset to gain ownership.

How to Buy and Sell NFTs

To know how to buy and sell an NFT, here is what you need to know. Before getting into this, understand that NFTs are bought with cryptocurrency and that NFTs are stored on blockchain platforms. To participate in the blockchain you need a cryptocurrency wallet.

  • 1. Search for an NFT Marketplace: Find an NFT marketplace to buy or sell your NFTs. OpenSea, Rarible, Foundation, SuperRare, and Nifty Gateway are popular marketplaces to buy and sell NFTs.
  • 2. Setting up a Wallet: To store the NFTs you must need a crypto wallet. The most popular wallets for NFTs are MetaMask and Coinbase Wallet.
  • 3. Buy an NFT: As aforementioned, to buy NFTs you need cryptocurrency. Popular cryptocurrencies are Ethereum and Bitcoin. After you have the cryptocurrency, use the marketplace and search for the NFT you want to buy. Then purchase it using your crypto wallet.
  • 4. How to Sell an NFT: First list the items for sale on a marketplace. You can create your own marketplace or use platforms such as Rarible to sell your NFTs. Following that, you will next need to set a price for the NFT. Ensure you have the necessary cryptocurrency to accept payments. After a buyer has purchased, you can transfer it to their wallet.