In June digital pixel artwork CryptoPunk #7523 sold for about 11 million dollars in the Sotheby auction. Therefore NFTs became one of the major focuses of all the investors. But are NFTs only confined to JPEGs, or they have even spread out premises? It is time to find out.
Most of the crypto experts are now inclining towards NFTs, and that too for a good reason. The seasoned NFTs are now increasing by 50000% and that is no joke considering it came up only a couple of years ago. However, most people make the mistake of labeling them as JPEGs as if it is just confined to this single element.
What Are NFTs?
Simply said, NFTs are digital assets with distinct characteristics. They can range from virtual objects such as CryptoKitties to tangible assets like real estate. Land titles, art, souvenirs, memorabilia, and sports cards are just a few examples of NFT digital assets.
The term “non-fungible” refers to the fact that each asset is distinct and irreplaceable. One dollar, for example, is fungible because it may be exchanged for another $1 and still be the same thing. If you trade it for a different card, you’ll get something… different.
It’s helpful to think of them as digital collector’s items: instead of receiving a real artwork, you’ll receive a digital file.
NFTs are an integral part of the crypto blockchain, and most of them are a part and parcel of Ethereum itself. It is a decentralized system and the blockchain will validate all the NFT transfers. Ethereum is a cryptocurrency like Bitcoin, but the only difference is it has some unique assets.
Non Fungible Tokens are unique tokens that are kept in virtual spaces ad you can divide, transfer and consume them.
NFTs- Why Should We Care So Much?
Blockchain technologies are a revolutionary change that has created a new model of asset transfer for investors. Since the NFTs are given a digital standard for being an owner of tangible items, they are the ones driving the revolution. In the first three quarters of this year, NFT asset sales totaled more than $3.5 billion.
One of the most popular NFT projects online, the Bored Ape Yacht Club, sold for $982,500, and Twitter creator Jack Dorsey sold his first-ever tweet as an NFT for more than $2.9 million.
Features Of NFT To Look Out For:
Indivisibility
In the same way that you can’t buy and use a train ticket in parts, NFTs are indivisible in terms of their utility (only one person can use the seat).
Scarcity
Developers have the ability to limit the number of NFTs available, making them scarce.
One-of-a-kindness: No two are alike. Every NFT’s metadata is unchangeable, ensuring its verifiability.
Ownership
NFTs are stored in connected accounts using distributed ledger technology (DLT). The private key of the account where they live is controlled by their original creator. That user can also transfer their NFT(s) to any account they want.
Transparency
Decentralized and unchangeable public distributed ledgers. There are public records of token issuance, activity, and transfers that can be verified. As a result, the legitimacy of the product may be verified.
Interoperability
NFTs are traded (bought or sold) across several DLTs via a decentralized bridge.
Apart from all the features that we have already mentioned, three other qualities can make an NFT attractive for the investors out there.
Rarity
CryptoPunks was a great collection of art characters that was created in the year 2017- and it was brought forward by Larva Labs. It made a mark and shocked people- since just a couple of pixels became an exclusive art piece. No one thought that CryptoPunk #7523 could be sold to the auction house for $11million.
It was the first super successful project and it remains the most valuable piece in today’s market.
Gamification
Along with the community voting process, gamification is another feature that is highly talked about. Divine Anarchy said on its site that NFT acts as the experimental catalyst and is a successful attempt at in-game governance. The project of this unit started on 1st October, and it became a sensation quite quickly.
The stunning art along with default sandbox game theory has been able to turn heads. Not only that, but it gives realistic effects and has been able to gain the support of numerous influencers from the Twitter community. NFT is the bridge that has closed the differences between crypto and anime.
Access
The Bored Ape Yacht Club (BAYC) was released in June, and it took a unique method to increase its NFT worth. As a result of the fact that owning a Bored Ape double as a membership card to its digital club, investors were eager to pay top dollar to gain entry to the elite crypto group, increasing its perceived worth. Furthermore, the project’s roadmap is updated on a regular basis.
According to recent BAYC social media posts, the organization hopes to open a real yacht club in the future and claims to be luring celebrities from across the world. In addition, private clubs and hidden organizations have formed around NFT holders.
The Future Of NFT Collectibles
When it comes to NFT assets, you have to navigate through the various platforms and pick out the right one. Look for a community that is active and you can get newer project ideas. Finally, it is time for you to invoke innovation so that you can enjoy the benefits.
