What is an NFT? Find out once and for all!
People all over the world are buying and selling NFTs. If you still don't know what it is, you're missing out on this opportunity. Learn more about this effervescent subject.
by Julia Bermudez
It’s past time that you learn what an NFT is and how it works, so let’s do this!
Ok, the year is 2022, and you still don’t know what an NFT is? Don’t feel bad about it. It is not that simple, even if you’re 14-year-old niece seems to have been born knowing what it is. Maybe he doesn’t know exactly how it works, but you’ll learn it now.
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Life has not been quite simple in the past years, and this decade is looking like a hundred years have passed. Technology is moving forward faster than ever, and it’s normal that our 30plus years old minds are struggling a bit to keep up with all the news.
But let’s take a deep breath. From now on, we’re stepping into the mysterious and interesting world of the NFTs. If you have no idea what this is or is not quite sure, keep reading to learn it for real.
I’m sure you will rock the next happy hour chat when your friend tells you about the new NFT he has bought.
What is an NFT, and what does it mean?
Starting with the basics, NFT is an acronym for “Non-Fungible Token”. And if that information just made the question mark in your head bigger, read on to learn what this combination of words means.
A token is an exchange currency in the cryptocurrency world. Non-fungible means that something cannot be replaced by a similar one because it has unique characteristics. That is, each NFT is unique.
For example, a $100 bill can be exchanged for two $50 bills, and the value will remain the same. On the other hand, a work of art cannot be replaced by another, as it has a unique value in itself.
An NFT is a digital asset, meaning you own ownership of it. In the same way that you own property in your car, house, stocks, bonds, etc.
For example, a painting by a well-known artist such as Frida Kahlo. When you buy such a work, you have a certificate of originality, which guarantees its value and ownership. Other people can even copy this work and reproduce it, even illegally, but it will never have the same value as the original work.
So if you have in front of you (in this case on your screen) two apparently identical digital works, it is possible to look “inside” them, in your code, which is original and to whom it belongs.
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How does an NFT work?
Each NFT has a digital signature, which guarantees that it cannot be copied or exchanged for another. He has a record of who produced and who bought the NFT. It is like a form of internal signature, which is in the middle of the fabric of a painting on canvas, and which cannot be erased to write another signature on top.
The programming language that made NFT viable is the same as cryptocurrencies, with the blockchain system and encrypted information. NFT basically exists on the Ethereum network. The difference is that cryptocurrencies are fungible. That is, they can be exchanged for similar ones.
When creating the NFT, a blockchain-encrypted digital certificate is generated for each piece. This piece can be a digital graphic artwork, a game, a song, a video, or a document, among others.
Who can make an NFT?
Theoretically, anyone can do an NFT. You just need access to the tools you need – and the money to pay the fees associated with the process.
The first step is to produce the work in question. You can digitize a part that already exists in the real world or produce it directly as digital artwork. There are works that exist exclusively as NFTs and are only in the digital environment.
You will need to create a crypto wallet at an online broker that supports this type of transaction. There are some fees you will need to pay on Ethereum.
There are several marketplaces to sell the NFTS. You need to choose one of them and link it to your crypto wallet.
Finally, you will go through the process of listing your work as an NFT according to the parameters of the marketplace you have chosen. You can choose to post each work individually or make copies available. Even if you make multiple copies available, each one remains unique.
And that’s basically it. Now your NFT is available on this marketplace, and other users can buy your artwork in cryptocurrencies. You can even add royalties to your NFT. This way, you will continue to receive a percentage of your NFT is resold.
What do I get when I buy an NFT?
What is still a little confusing to understand is what you actually have when you buy an NFT.
We are used to attaching value to what we physically possess, especially when it comes to works of art.
So a painting on canvas, a vinyl record, a piece of clothing, a sculpture, or a book are things that are easier to recognize the value. Perhaps because we recognize the value of the material used in production and marketing.
In some ways, NFT is safer and easier to guarantee authenticity than physical work. The thing is, many feel silly to have something that looks like what we know as a jpeg or mp3 image.
The NFTs have brought a change in mindset regarding the value of artistic production. Buying an NFT is a great way to support an artist.
However, it is necessary to pay attention to the consumerist tendencies of owning just for the sake of owning, without recognizing the real value of a piece of art.
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About the author / Julia Bermudez
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