In recent weeks, cryptocurrency experts have been
talking a lot about NFTs, an acronym that stands for Non-Fungible Tokens.
Curiosity about the matter is also strong. Because, according to some analysts,
NFTs are the most important innovation in the cryptocurrency sector after
Bitcoin. We're not talking about something ephemeral like this but a new tool
that we'll be listening to for a long time. So, it is better not to waste time
and immediately understand clearly what we will be working on.
What are NFTs and how do they work are the main
questions of this post. Another question we will try to answer is why
non-fungible tokens are integrated into an artificial cryptocurrency. What is
meant by this concept?
Tokens – NFT what are they?
The non-fungible token is an expression that can
be translated into Italian with these words: "non-exchangeable
product". This definition is strictly speaking little and thus other
elements need to be added. NFTs are virtual currencies like paintings, but also
related to artistic works like music. In terms of technology, the NFT event
involves memes circulating on the web (which is nothing more than an art form).
NFTs don't exist today, but if they've been
talked about a lot lately, it's because some big investors like Elon Musk have
started mentioning non-fungible tokens on their social profiles, thus
increasing their notoriety.
Technically a non-fungible token represents a
record of ownership of a digital object on a blockchain. An NFT can be any type
of media such as art, video, music, GIFs, games, text, and memes. The essential
characteristic is non-fungibility. NFTs are unique and therefore cannot be
replaced by other assets.
Some of the most successful NFTs include Internet
memes such as Nan Cat, but also some songs from the new Kings of Leon album.
All these resources are freely available on the Internet. But, thanks to
cryptocurrency, ownership of the underlying asset is protected.
An example of NTF is Jack Dorsey's first tweet
that went up for auction for something like $2.5 million.
Non-Fungible Tokens work?
In the field of creative businesses, NFTs are
experiencing increasing interest which is why we talk about artistic
cryptocurrency or crypto-art. This success is due to NFT's ability to allow art
creators to monetize the talent expressed in their creations directly from
Because it is possible to create artwork on the
blockchain, the artist's content can actually be sold in a decentralized
marketplace. Among other things, crypto-art allows the artist to receive a
percentage whenever the product, the result of his idea, is sold or changes
This way you not only have ownership through the
NTF but ownership on the blockchain, i.e. transparent ownership that everyone
The blockchain technology implemented in NFTs is
the same from which Bitcoin originates. It is the queen of cryptocurrencies
which recently reached a step above 60 thousand dollars. This is creating a
boom in investing through CFDs through brokers like eToro
Even in crypto-art, this technology is proving to
be the most interesting formula for trying to change financial markets.
According to the well-known Tyler Winklevoss, CEO
of Nifty Gateway, NFTs and digital collectibles will play an important role in
the next era of the digital economy. They are the perfect form for
crypto-collectibles, crypto-art, and more. This is laying the groundwork for
the rise of a whole new multi-billion-dollar industry.
Are NFTs a
good investment product?
As with real-world items, whether a digital asset
has value and maintains its value is determined by a number of factors,
Current asset markets
Type of asset
The popularity of the creator or
Lack of creator or artist work
The industry can be fickle, and so is NF. Note:
Some NFTs are linked to physical assets (such as house deeds) or experiences
(such as concert tickets) rather than digital assets, which brings new
difficulties to predict whether to invest in NFTs. Also remember that some
assets may be worth buying because they mean something to you, not because of
their potential to appreciate.
If you decide to start with NFTs, be sure to use
a secure encrypted wallet to keep your investments safe.
Non-Fungible Tokens on Binance
Well-known exchange Binance recently launched the
Binance NFT Marketplace. It is a new platform that allows creators and
collectors to issue and trade NFTs. Thanks to Binance, it's possible to create
non-fungible tokens and experience the benefits of digital property rights
first-hand. Creating NFTs on Binance takes minutes and is at best an idea that
can be converted into a non-fungible asset.
With the new Binance tool, it is possible to
create NFTs and transfer them between the Binance smart chain and the Ethereum
blockchain. The new platform is designed for creators but can also be very
useful for collectors who can buy NFTs from the integrated market at a fixed
price or through an auction.
stories related to non-fungible tokens
As mentioned earlier, thanks to the advent of
blockchain technology, collectors and gamers from all over the world. They can
become irrevocable owners of unique items and profit from their possession. In
some situations, it is also possible to build facilities such as casinos and
theme parks first and then monetize them. Obviously, all are virtual (for
example, in this sense, sandbox and decentral). Players can also sell certain
items accumulated through gameplay such as avatars or coins.
Not Fungible Token NFTs are especially important
for artists as they can sell their artwork to a potentially infinite audience
using digital formats. The manufacturer may receive a certain percentage of the
profits for royalties each time a sale is made to a new customer.
One of Not Fungible Token's success stories is
William Shatner, known to most as Captain Kirk from "Star Trek." This
investor entered the digital collectibles category in 2020 with 90,000 digital
cards with his face on the WAX blockchain. Each card sells for about a dollar.
Card after card, Shatner now boasts a pretty good passive royalty income. After
all, this income is constantly growing because it increases every time a new
sale is made.
opinion on Non-Fungible Tokens
A few months ago there was a lot of hype around
NFTs (Non-Fungible Tokens) involving athletes, pop stars but also famous
artists. The scenario is rapidly evolving and cryptocurrency and blockchain
experts are divided into two groups. On the one hand, indeed, there are people
who believe that NTFs are a great opportunity, on the other hand, there are
people who are beginning to doubt tokens.
The rise in popularity of NTF has revealed that,
indeed, there is something that attracts and will attract more and more users.
In the digital realm, Merone continued, the concept of ownership is becoming
increasingly ambiguous. As the sense of ownership of an asset becomes
increasingly intangible, NTFs can be a means of recreating the sense of
ownership in the digital world. Ultimately, Marone concludes, non-fungible
tokens may be the first way people can own something digital.
you buy NFT?
Almost any crypto wallet will give you the option
to buy, store, send or exchange NFT. They give you access to NFT marketplaces
like OpenSea, Rarible, Foundation, SuperRare, and more.
Want to know more? To learn more about NFTs and
their uses, check out our blog section.