In an increasingly digitalized ecosystem, NFTs have been in the spotlight in recent months. Highlighted by several record sales at the start of the year, this new technology represents for some a major breakthrough for the blockchain, for others a speculative product! It didn’t take long to arouse the curiosity of the general public! NFTs quickly became popular on social networks and on the Internet …
What is an NFT?
In one sentence: an NFT is a digital object to which we give a unique and non-reproducible code. It is therefore possible to trace the life of each object, from its creation to today, all secured by blockchain technology.
An NFT or “Non Fungible Token” is a digital asset issued by a blockchain like Ethereum or BinanceChain. Non-fungible means that each token or (token) is unique, and cannot be reproduced unlike “classic” cryptocurrencies which are fungible, that is to say equal and identical, such as Ethereum or Bitcoin.
In other words, an NFT, by virtue of its uniqueness and non-reproducibility, attracts many collectors just like a work of art. The rarity of an NFT, ensured by powerful blockhain technology, stirs up crowds. For several months the sales records have been linked!
NFTs can be created on different blockchains. In this article, we will focus on Ethereum, which has the largest number of crypto-artists.
Anyone can create, buy or sell them on the various marketplaces.
You can think of an NFT as a one-of-a-kind collectible card owned by a lucky owner who can sell or trade it whenever they want.
In practice, this NFT format card is represented by a digital object, and its existence is ensured by the blockchain and its unique code. In itself, it is the very existence as a digital object in the blockchain that makes an NFT unique.
NFTs are bought and traded like any other Ethereum-based cryptocurrency. There are different specialized marketplaces, such as Opensea or Rare. Transactions are carried out in cryptocurrencies, most often in ETH or USDT.
Invest in NFTs?
Record sales in recent months are attracting more and more speculators, hoping to hit the jackpot. It must be said that when you see the capital gains of some, it can make your head spin.
For example, this free CRYPTOPUNKS generated in 2017 recently sold for around $ 1,600,000.
Many new projects take hold of the concept and hope one day to find the same success. This is the case for example with CRYPTOWORMS! A limited series of NFT available on the biggest marketplace of NFT Opensea!If the idea of buying an NFT because you like it is one thing, investing in it is another. Once again, we would like to remind you that the domain is still very recent. As with a work of art, some time must have passed for it to be recognized as such.