NFT: THE CRAZE AND THE MARKETPLACE

Some people say NFTs (Non Fungible Tokens) are a façade. Others see them as the future of how collector items work in a digital age. Notwithstanding the positions, there are people who are really spending millions of dollars on NFTs. With the World Wide Web source code sold for $5.4 million, you can’t ignore NFTs anymore. It’s in your best interest to learn about them, in whichever manner possible.

WHAT EXACTLY IS NFT?

NFTs are digital assets that would change the way we create and extract value. It has been said that NFTs transform art, governance, gaming, finance, charity and communities, logistics and more. And it will be impossible to talk about NFTs without mentioning the tech that makes them valuable; the blockchain.

The most popularly used case for the blockchain is cryptocurrency. Even if you heard of NFTs recently, there is a high probability you have known Bitcoin way before now. It is putting power back in the hands of the people finance wise. Historically, technology has always taken things that are exclusive to a class of people and made them readily available to everyone; democratizing access.

HOW DOES NFT WORK?

Essentially, NFTs are like the physical collector’s items, only that they are digital. For example, instead of getting an actual painting to hang on the wall, the buyer gets a digital file instead. They also get ownership rights, with their use of blockchain technology, making it easy to verify ownership and transfer tokens between owners. The creator can also store specific information in an NFT metadata.

WHAT ARE NFTs USED FOR?

NFTs can be used to represent physical objects, digital contents, or even intangible concepts like intellectual property. It’s amazing that NFTs are beyond digital contents, beyond 2D or 3D images, there are several actual practical uses for it.

WHAT IS NFT MARKETPLACE?

An NFT marketplace is a digital platform for buying and selling NFTs. These platforms allow people to store and display their NFTs, plus sell them to others for cryptocurrency. Some NFT marketplaces also allow users to mint their NFTs on the platform itself.

HOW TO BUY NFTs?

If you really want to start your own NFT collection, you’ll need to acquire some key items: first, you’ll need a digital wallet that allows you to store NFTs and cryptocurrencies. you’ll likely need to purchase some cryptocurrency like ether, depending on what currencies your NFT provider accepts. You can buy crypto using a credit card on platforms like Kraken, Coinbase, eToro and paypal, you’ll then be able to move it from the exchange to your wallet of choice.

TYPES OF MARKETPLACE

The common marketplace include the following:

1. Opensea.io:  This platform bills itself a purveyor of “rare digital items and collectibles” to get started, all you need to do is create an account to browse NFT collections. You can also sort pieces by sales volume to discover new talents.

2. Foundation:  Here, artists must receive “upvotes” or an invitation from fellow creators to post their art. The community’s exclusivity and cost of entry artists must also purchase “gas” to mint NFTs , meaning it may boost higher calibre artwork. For instance, Nyan Cat creator Chris Torres sold the NFT on the foundation platform.

3. Rarible: Similar to opensea, Rarible is a democratic, open marketplace that allows artists and creators to issue and sell NFTs. It also enables holders to weigh in on features like fees and community rules.

4. Superare: Similar to Rarible, SuperRare is also building a marketplace for digital creators. The site includes art, videos, and 3D images, but collectors can purchase artwork  using Ethereum.

5.  Theta Drop:Theta is a blockchain platform built for the decentralised distribution of video and TV on the internet. The NFT marketplace Theta Drop made its debut in 2021 with the World Poker Tour’s digital collectibles. The World Poker Tour was an early adopter of ThetaTV and uses the platform to stream content.

SHOULD YOU BUY NFT?

Bear it in mind, an NFT’s value is based entirely on what you are willing to pay for it. Therefore, demand will drive the price rather than fundamental, technical or economic indicators, which typically influence stock prices and at least generally form the basis for investor demand.

If you want in on the NFT craze, an NFT marketplace is your gateway to participating in the purchase and sale of these digital assets — from art to music to entire virtual worlds. Think of NFT marketplaces as your Amazon of the digital realm.