NFT has become more popular in recent years, so we plan to create a new NFT series on how you can earn money from NFT. In future videos, you will learn how to create those NFTs and sell them on the marketplaces step by step in simple methods.
This is the very first post of the series. Today we are going to explain What is NFT? How does it work?
NFT stands for Non-Fungible Token. The term is used to describe a type of digital asset that is unique and different from all other assets. NFTs are a new type of blockchain-based asset. They can be traded on the blockchain and have different properties.
NFTs are similar to cryptocurrencies but they can also provide additional information about the token which makes them more valuable and desirable.
Let’s make it simple. Cryptocurrencies and physical money are both “Fungible,” meaning they may be traded or exchanged for one another. They’re also worth the same amount of money. That means one dollar is always worth another dollar and one Bitcoin is always worth another Bitcoin. The fungibility of cryptocurrency makes it a secure way to perform blockchain transactions.
But NFTs are unique. Each contains a digital signature that prevents NFTs from being traded for or compared to one another. But you can sell and buy NFTs using cryptocurrencies. So they are non-fungible assets of the blockchain.
How does NFT work?
These assets are usually scarce, meaning there will only be a fixed number of them in circulation at any given time.
Non-fungible tokens are usually used in games where the users can buy, trade, and sell virtual items online. They can also be used to represent ownership or rights to an asset or service.
NFTs are most often held on the Ethereum and Polygon blockchains, but they can also be kept on other blockchains.
An NFT is made up of digital objects that represent both tangible and intangible elements;
- Art, SVG files
- Virtual avatars,
- Music, and is called a “minted” NFT.
What NFTs will be Valuable
NFTs are an alternative to physical items but can be used for a variety of purposes. NFTs can have value in the digital world and can be transferred to other people through the use of QR codes.
The artist can offer their arts as an NFT straight to the consumer, allowing them to keep more of the revenues. Additionally, they receive a share of sales when their work is sold to a new owner.
NFTs are becoming an increasingly popular way for companies and individuals to trade assets with each other in a decentralized manner. This is because they offer many benefits over traditional methods of trading, such as lower transaction costs, privacy, and more flexibility with how they are used.
How can I buy NFTs?
There are a few different ways to buy NFTs, but the most popular way is through marketplaces. There are many different marketplaces that offer NFTs for sale and have a variety of different categories to choose from.
Some of the popular NFT marketplaces include:
- Nifty Gateway
- Binance NFT
- Async Art
NFT Blockchain Future Outlook
Blockchain technology has the potential to solve many of our current problems. The first and most popular use case was Bitcoin. However, the real potential of blockchain is only just being realized and there are already a variety of new technologies based on blockchain that is being developed for solving problems in various industries.
Stay with the MineX Tuts community forum, we will give you a full series of NFT tutorials in future videos and posts. If you have any issue regarding NFTs and its uses, please open question on MineX Tuts Community Forum.