NFT stands for "Non-Fungible Token."
Here are some key characteristics of NFTs:
- Uniqueness: Each NFT is distinct and cannot be replicated. This is in contrast to cryptocurrencies like Bitcoin or Ethereum, which are fungible and can be exchanged on a one-to-one basis.
- Blockchain Technology: NFTs are typically built on blockchain platforms such as Ethereum, Binance Smart Chain, or others. The blockchain ensures the scarcity and provenance of the NFT, making it secure and tamper-proof.
- Ownership and Provenance: NFTs provide a transparent and immutable record of ownership and transaction history. This means that buyers can verify the authenticity and ownership of an NFT.
- Digital Content: While NFTs can represent a wide range of digital assets, they are commonly associated with digital art, music, collectibles, virtual real estate, in-game items, and other digital creations.
- Marketplace: NFTs are bought and sold on various online marketplaces, where collectors and investors can purchase them using cryptocurrency. Some popular NFT marketplaces include OpenSea, Rarible, and NBA Top Shot.
- Smart Contracts: NFTs often use smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. These smart contracts automate the process of transferring ownership when an NFT is bought or sold.
NFTs have sparked debates and discussions surrounding digital ownership, copyright, environmental concerns (due to the energy consumption of blockchain networks), and the speculative nature of some NFT markets
NFT’s in regards to the “art” distribution is ridiculous. Some money laundering, some people with too much money spending it on what are essential digital Beenie Baby’s or Funco Pops. Some day, maybe, just maybe.. some collector will give a shit about that one particular digital piece of art.
NFT’s otherwise aren’t something you just.. make money off of. It’s a tool for digitizing ownership of an asset. It is a digital token that you can tie certifications or licenses or documentation to that says “whoever holds this token, owns ______”. So if you can create a platform that becomes the de facto or trusted platform for digitizing rights to a particular asset, then you’ve got it made.
For example, in the Metaverse, if a virtual “Theme Park” of sorts was created and allowed for independent vendors to sell a unique item that can be utilized in that theme park, then you’ve got yourself a VR retailing business. The item, say for example, a hat that is worn by your avatar in the VR world. That hat be owned by that user. There will be “smart contracts” (look it up if you don’t know about it. You won’t be able to understand the scope of all this if you don’t know what smart contracts are) that will execute and mint a new NFT (a cryptocurrency token) that is transferred to the new owners possession. Once that token is transferred the rest of the smart contract/code will execute creating the hat in that VR environment.
All of this will be happening simultaneously and in the background. Like when you buy a weapon skin in a video game now. Except, instead of that skin being locked into that video game where it has no more value outside of you showing it off when you kill people, you can sell that item (or sell the token) to other users in that world.
We can also assume interoperability will be a factor in the Metaverse, allowing you to take said hat into other VR environments.
So the long answer is yes. How soon will that happen? God knows.
And this is only one gimmicky solution for NFT applications. There are real world applications as well. People nowadays have online certifications for their ownership of gold being held in some fortress somewhere. You could do the same thing with NFT’s, except you now hold that token in your digital wallet that signifies you hold X amount of gold. And whoever you give that token to, is now the legal owner of that gold.
CONCLUSION:
IS IT WORTH IT TO INVEST? Yes, but do your research. There are a lot of aspects of NFTs, and the entire process, that usually people learn through experience rather than observation: Sell when the floor is hot right after reveal, don’t hold. When reveal happens, the floor price drops. When reveal happens, it is an opportunity to find mispriced assets like rares or legendaries at floor price. These are things people usually learn just by being in a few projects.
You can still make so much money, but you need to follow someone who did this.
quick tips:
- social media ( twitter, discord, etc are the best)
- get a team of few people ( give them a chance to earn serious by promoting your nft)
- hold events
Doing it without a mode is kinda like scamming yourself
