What is a NFT and How to Get Started

NFT’s are the newest and most exciting development in blockchain technology in 2021. You may have heard about them before, or you might be wondering what they are and how they work. We’re going to answer all your questions below!

NFT is an acronym for non fungible token.

Non fungible simply means that each item has its own, unique identity and cannot be substituted with another identical one because their internal data will not match up.

NFTs are new digital assets on the blockchain. They’re desirable and unique assets, unlike fungible tokens like Bitcoin or Ether which may be exchanged for each other with no discernable difference between them. A NFT can represent ownership of in-game items, trading cards, physical collectibles such as digital art or jewelry, stocks and bonds issued or even your latest tweet that got 10 retweets.

What is the blockchain?

The blockchain is the technology that powers all cryptocurrencies. It’s a decentralized, public ledger of transactions that everyone in the network can see and add to but no one controls or owns permanently.

A block is simply a list of transactions on the chain with every transaction having an identifying hash which makes it easily verifiable for anyone who sees it . Any blocks added to the chain link back in a chronological, unbroken sequence. This is what makes it immutable and decentralized so no one can tamper with or delete transactions without doing damage not only to themselves but everyone else on the network as well.

In the last few years, it has been adapted to use in other industries as well such as for facilitating peer-to-peer transactions of music and digital artwork without any central ownership or control over them . This is where a NFT comes into play.

How long have NFTs been around?

As early as 2014 companies where intrigued by the emergence of peer to peer trading using BitCoin. Soon, the first NFT, titled “Quantum” by digital artists Anil Dash and Kevin McCoy, was created and is now valued at over $7 million dollars.

NFTs really became technically possible when the Ethereum blockchain brought NFTs to a larger market in 2017 when American studio Larva Labs released CryptoPunks. In the same year CryptoKitties went viral and people all around the world could adopt and virtual kitties, some going for as much as $100,000.

Are all NFTs on Etheurem?

NFTs can also be created on the NEO, Stellar and Cardano blockchains. One platform that is doing a lot of work in this space for NFTs is called Enjin Coin which allows developers to create their own game assets from scratch using JavaScript (no blockchain expertise required!)

How do NFTs work?

A NFT is a tokens that represent anything of value on the Ethereum . A NFT is “minted” by a user who claims to be it’s initial creator and owner. This creates initial registration creates a unique, one of a kind token that forever links the token to art. The purpose of the blockchain is to create an unbreakable chain that includes and records all further transactions in the data record of ownership of shares of that token. Copies of minted NFTs are then sold by it’s creator in a few ways. They can be sold out-right  or shares or copies of the art purchased. All this means the NFT is original and unique but the art itself might not be one of a kind.

Why are NFTs worth so much?

NFTs are scarce digital assets that can be verified as unique using blockchain technology. They are designed to create a marketplace for the one thing that can truly belong to one entity (or person)… ownership. In other words, the NFT is original and unique but the art itself might not be one of a kind. This means they have the potential to become like collectibles and artwork, which is one of their most popular use cases for now . Some people believe in 20 years they will be everywhere; everything from cars to real estate could be represented by a token on the blockchain.

How do you own something that is digital and can be copied?

Unless you are the originator of the mint, you don’t technically own anything other than a share of the token that represents the digital work.  The artwork can be copied, used, distributed, printed without violating the originators rights.

They also come with some interesting benefits that make them worth investing in now:

  • A NFT has no intrinsic value; it’s only true worth is what someone else will pay you for them.
  • You can buy and sell NFTs on a secondary market, meaning you have the potential to make money by trading with others. This is just like when someone buys an antique vase at a yard sale for $20 but sells it online for $1500!
  • Trading items gives people incentive to create more digital items.
  • NFTs are a way to democratize control of digital items, allowing people from all over the world to share in the wealth created by games and other virtual economies.

What are the benefits to owning NFTs?

Ownership of an item can be split up into as many pieces as you want. For example, you can have one piece of ownership in a digital cat and give nine other people the right to own that same part.

This means that if someone owns 50% of it and trades them for another NFT worth $25 then they would make back their initial investment plus an extra five dollars!

Trading items gives players an incentive to collect items they can trade for other rare or sought-after NFTs.

When someone owns a part of an item, that person has the right to vote on what happens with it. This means people have more control over their virtual goods than ever before.

What are the benefits of collecting NFTs?  Are NFTs a good investments?

  • Collecting NFTs is a great way to diversify your digital asset portfolio. Similar to the stock market, people who invest in cryptocurrencies are encouraged to have their investments spread out across multiple types of currencies and markets.
  • Some see collecting NFTs as an affordable alternative to buying real world items like cars or houses.
  • An NFT could be used to purchase in game items or other collectibles. This opens up opportunities for gamers and investors alike! Investors would like this because their games will no longer require them to spend money on microtransactions. Gamers would get an opportunity to use their favorite characters without having to pay any extra fees.

Are NFTs secure?

NFTs are stored on the blockchain, which is an immutable and permanent ledger. This means that your tokens cannot be lost or stolen like personal information can. The only way to lose a NFT , for example something digital in nature like Bitcoin or Ethereum, would be if someone finds it first when looking through past transactions and takes it.

But that doesn’t mean the system can’t be manipulated. Sleepminting has emerged as way to challenge to create seemingly legitimate transactions that are recorded in the blockchain but actually never happened.

How do you get your money out of NFTs?

You can sell your NFTs on the market or trade them. You will also be able to cash out by trading for government backed currencies like USD and EURO in a variety of exchanges like Coinbase or Kraken and then withdrawing from there.

How much money can you make with NFTs?

This is a difficult question to answer, but in theory you can make as much money with NFTs as you would with any other type of asset. The allure of NFTs is the endless possibilities of what can be sold and how easy it is to create. The market so far has included:

In March 2020, Alex Ramírez-Mallis sold a 52 minute audio recording NFT of … a fart for $85.

Jack Dorsey, founder of and CEO of Twitter, sold his first tweet as a NFT and scored $2.9 million dollars.

Toymaker Mattel is considering selling their flagship toy collection, the world famous Barbie, as NFTs.

The (current) sales record for a single NFT is Everyday – The First 5,000 Days which sold for

$69 Million dollars. (March 2021) by digital artist Beeple.


How to Get Started with NFTs?

  1. Create a wallet: You can use any Ethereum compatible browser such as Metamask, Ledger Nano S or Trezor to create your public and private keys. A place to store NFTs is called an “ERC20 Wallet” which will have both of these keys. This type of account would be the safest but least versatile option due to its reliance on a third party application like MetaMask.
  2. Create a smart contract: This is a good option for beginners, as it doesn’t require outside applications. Your Ethereum address will need to store the token’s code which can be found on any blockchain explorer.
  3. Issue your tokens: Tokens are created by issuing them from an account with ether in it. The line of code that does this is called “mint.”
  4. Trade on a decentralized exchange: The most popular of these is ForkDelta. This process can be fairly straightforward, but it’s important to know what you’re doing before getting involved in an unfamiliar market like this one.