Similar to forex trading or Bitcoin, NFTs are something you have heard of and are popular right now. But you may not be aware of much more. They are part of the cryptocurrency world. They fall under the Ethereum blockchain. They are for collectors who are passionate about collecting tokens and keepsakes from their favorite content creators.
While most NFTs are digital artwork, they can also be used as music NFTs or poker NFTs. If you are interested in joining the next great up-and-coming project we believe will change the world, keep reading.
What is NFT?
It’s worth learning about NFTs if this is your first encounter with cryptocurrency. Although they are complex, once you understand the basics, it is much easier to grasp the concept of NFTs.
NFTs are non-fungible tokens. Although it might seem like a simple term, non-fungible tokens can be understood to mean that the ‘item’ is unique and cannot be duplicated or replaced by another.
A bitcoin, unlike NFTs is a fungible asset. This means that you could trade one bitcoin for another and get exactly the same thing. That is why they are so different from other things like Bitcoin or Ethereum. Each NFT is unique and different, so one cannot be traded for another.
What Types Of NFTs Are There?
1. Digital Artwork
This was the first form where NFTs were popularized and began to take off. This is just one example of how far digital art has advanced. In 2020 Grimes sold nearly $6 million worth of digital artwork, with the most-sold piece, ‘Death of the Old,’ selling for $389,000. Due to the uniqueness of NFTs and their exclusivity, it is important to know that you can own a piece digital artwork.
2. GIFs and Video Clips
While standalone images are the most popular type of NFTs, video clips and GIFs are also very popular. Other platforms, such as TikTok and Youtube, have embraced the short video trend. You can also see reels on Instagram and ‘Shorts’ on Youtube. Vine is credited with a lot of the increase in demand for shorter videos over the years. It’s no surprise that GIFs and short videos have also been gaining popularity in NFT format. A video of Lebron James’ dunk shot was sold last year for nearly $400,000, breaking records at the time.
3. PFPs and Avatars
This form of NFT is very popular and it’s uniqueness makes it even more appealing. Everybody wants to be their own person online. Imagine having your own NFT for your profile picture, which you are the only one who has it. You may find that people recognize the account owner by simply looking at the avatar. This can make a huge difference in networking and online presence.
How NFTs are Changing the Online World
Now that we have looked at NFTs and the types of NFTs available, let’s look at how they impact the online world. People of all ages are affected by NFTs. It is possible to say that NFTs are extremely beneficial to artists looking to sell artwork.
NFTs allow you to financially support artists you love and also claim ownership rights. This is a remarkable advantage for buyers. You might also buy a piece of art as a collector with the intention to make a profit when it increases in value. There are many uses for NFTs, both for buyers and sellers.