Do you know what NFTs can do today? Do you know
what these NFTs are? To understand the true potential of non-fungible tokens or
NFT, you need to jump into this market. We need to understand how the digital
market is evolving in 2022 and how the concept of ownership and investment is
evolving. A digital asset, which thus does not physically exist, can have a
very high market value.
There are many digital artworks or NFTs that are
much more expensive. Artist Pak's The Merge on Nifty Gateway Platform, for example,
was auctioned off for $91,800. Digital buying and selling is very complex and
follows different processes from what we are used to knowing.
The merger was purchased by about 30,000 people:
this meant that everyone bought a "piece" of work and received a
"certificate of ownership". But NFT is not only digital work ... we
find audio files, GIFs, videos, memes but also objects inside video games.
What is an NFT
Starting with the non-fungible token name, let's
start analyzing what "non-fungible" means. Making it simply means an
NFT is unique and cannot be replaced with anything else. For example, a bitcoin
is fungible because it can be exchanged with other bitcoins to get exactly the
An NFT is not fungible because if you exchange it
with others you will get something completely different. NFT mainly attracts
collectors or investors who are only concerned with buying for resale.
The second part is "token" and it means
it can be exchanged. Such as cryptocurrency, other NFT exchanges, etc. By
definition of a token:
"A set of digital information within a
blockchain that entitles a particular subject. Tokenization is the conversion
of an asset into a digital token registered in a blockchain."
how an NFT works
Most NFTs are part of the Ethereum blockchain.
Ethereum is a cryptocurrency whose blockchain supports NFT. Blockchain stores
extra information that makes NFT work differently from cryptocurrencies, in
this case, ETH.
There are also different blockchains that can
implement their own version of NFT. Even if the functionality of the NFT is not
only reliable for the blockchain! There are other aspects that impact it, such
as the digital signature that appears through the hashing function.
"The term hash is used to identify a very
important cryptographic function in the computer world. These functions are
used to verify data authentication, securely store passwords, and sign
electronic documents. "
How to determine the value of an NFT
At first, it is hard to imagine that a digital
work could have authenticity. Because so far we are accustomed to considering
virtual as a copy of a copy. The concept of ownership and authenticity was born
precisely with blockchain technology.
The value of an NFT, and consequently its value,
increases depending on a variety of factors, including uniqueness. This feature
is extremely important. For blockchain technology, this feature is based on the
relationship of trust between the seller and the buyer.
Other features that determine its value are
obviously aesthetics, NFT's previous sales in a given context (video games,
artists, etc.), and the popularity that manifests itself among buyers and
sellers. Next, whether they are collectors or actual investors, the dynamics
are almost the same.
Some experts reveal two great secrets that lead
to investing in the NFT world. We recommend reading this article to deepen
their perspective. What’s certain is that prices are determined by buyers
’interests and both buyers and their investments revolve around episodic sales
vs. collection or gamified experiences.
In fact, NFT can only be bought with
cryptocurrency, and this market is even more special if we talk about big
statistics. And it is defeated by gamers and big investors who can be artists,
actors, or great entrepreneurs.
how to buy an NFT
When we talk about buying an NFT, we are not
talking about buying NFT per SEO. But the fact that the buyer can show that he
has full rights to the work, including a digital certificate of ownership that
can be created thanks to the hashing process.
The person who creates the hash and so the
digital certificate guarantees that there is an asset to the digital work. And
so it can be sold or exchanged, for example with cryptocurrencies. The
certificate of ownership is registered in the blockchain which marks the
relationship between the buyer and the work.
the most expensive NFTs on the web
In the fintech ranking, you can find the top 10
of the most expensive NFTs that have been sold so far. The last in the ranking
in order of price is a Cryptopunk that has been sold for more than 1.5 million
dollars. This already gives us a hint of what range of figures we are
First, is the work of Pak, a well-known digital
artist who was able to collect about 92 92 million in cryptocurrency from one
As a second we find again a digital work of art,
this time by the artist Beeple which was sold for the sum of more than 69
million dollars. Third in the ranking are the famous Cryptopunks, known to be
the first NFTs of the Ethereum blockchain.
works of art
Of course, the first three sectors that rotate
around the market own art. And by that we mean the digital works of more or less
famous artists who can make a living from their art nowadays if not before.
When a buyer actually buys an NFT of the digital
work of the industry, he will not have the right to own the "digital
file" of his work. But, he will be entitled to a certificate of ownership,
usually without acquiring the commercial right to work
In the NFT industry, billions of euros are
collected between collectors and net investors. One of the revolutions in the
NFT industry is their identity and the impossibility (theoretically) of
creating a mesh, which often occurs with physical exertion.
Also in this video game sector, NFTs are doing
great work, we are talking about 9 Zero figures. The purchase and sale of NFTs
in video games is the purchase of non-fungible tokens made available to
players. And these can be really different from each other.
For example, in the Metaverse of Sandbox. There
is an original gallery of digital works of art that can be purchased. While at
Axie Infinity, video game players can present animals for the battle to
reproduce and resell, somewhat older Pokemon style.
A portion of the video game market is NFT based.
It surpassed 2 percent of the total revenue of several companies investing in
cryptocurrencies last year and so in blockchain and NFT.
Values: video, photo, meme, and GIF
On the premises built so far, we have reached the
third-largest block of NFT that promotes the market. Since digital can verify
the authenticity and ownership of virtually anything, videos, photos, concerts,
shows, or live events, GIFs, memes and more can be included in NFT.
Jack Dorsey sold ownership of one of his tweets
as NFT, becoming the first tweet worth 2.5 million. An animated GIF of a flying
cat has sold for over $ 500,000, and a collection of digital images at auction
has brought in $70 million!
Another million dollars for a photo in the .jpg
file, including a meme about the vagina of supermodel Cara Delevingne and a
video and a painting by artist Beepel, which sold for $69.3 million. These are
all unique and certified pieces.