What The Hell Is An NFT
NFT stands for “non-fungible token” and it’s a new way of representing digital collectibles in video games and other applications. It’s a type of blockchain token that represents a unique and non-divisible digital asset.
The most well-known example of an NFT is CryptoKitties, which became a phenomenon in late 2017 when users spent millions of dollars on virtual cats. While the game was popular, it also highlighted some shortcomings of the technology — namely scalability issues, limited interoperability with other platforms, and high transaction fees.
Today, there are many different NFTs available on the market, including Cryptopunks (a blockchain-based version of punk rock), CryptoBots (a collection of collectible robots), CryptoPunks (an online trading card game based on Black Mirror’s “Fifteen Million Merits”), and many more.
When did the NFT craze start?
It started with CryptoKitties. While it’s true that there were other non-fungible tokens before CryptoKitties, they weren’t nearly as popular or as successful as CryptoKitties.
The website was launched in December 2017 and immediately became a hit. Users could buy and sell their digital cats for real money, and it was so popular that it was responsible for slowing down the network of Ethereum — the blockchain on which it ran — for several days.
The success of CryptoKitties inspired many other companies to develop their own NFTs. In 2018 alone, more than $2 billion worth of non-fungible tokens have been sold through various platforms like OpenSea and RareBits.
What The Hell Is AnNft?
NFTs or Non-Fungible Tokens are a relatively new asset class that doesn’t quite fit into traditional crypto or even other blockchain assets. They can be hard to wrap your head around but they’re different than most other things in the crypto space and they have some interesting properties that are worth understanding.
There are lots of different types of NFTs out there, some more common than others, each with their own unique features and properties. Here is a quick rundown of the most common types:
Collectibles — These are like digital trading cards, such as CryptoKitties or Rare Pepe. They’re unique digital art that can be traded on markets like OpenSea or RareBits. Collectibles are usually built on Ethereum because it provides an easy way to create an ERC721 token (more on this later).
Non-fungible tokens with utility — These are tokens that have been created by an issuer who has built an application or platform where users can use them for something like voting rights or membership benefits. For example, the Aragon Network uses its ANT token for governance within its ecosystem.
Why is everyone freaking out about NFTs?
NFTs are digital assets that can be owned and traded. They’re like crypto collectibles, but they can represent anything — not just crypto-themed things like CryptoKitties.
The first thing to know about NFTs is that they’re not just a product of blockchain technology. They’ve existed for centuries, in the form of art and other collectible items.
What’s new is that NFTs have been digitized as part of blockchain technology. In other words, you can track the ownership of an NFT using the public ledger system that powers cryptocurrencies like Bitcoin and Ethereum.
The second thing you should know is that NFTs are not limited to the world of cryptocurrency or blockchain technology. You can use them to represent anything (including non-digital assets). The most popular use case right now is art — but even this has been expanded beyond paintings and sculptures; some artists are using NFTs to represent their music or writing as well.
Why are NFTs becoming a thing right now?
NFTs have been around for years, but they’ve only recently become popular due to the rise of blockchain technology.
Unlike traditional cryptocurrencies like bitcoin or Ethereum which are built on a public blockchain network, NFTs require their own private blockchain networks to operate properly. This allows them to store data more efficiently than other types of tokens and also makes them censorship resistant (which is important for digital art).
Are there actually people who buy NFTs?
Yes, but they’re not your typical buyers. It’s generally only a small percentage of the population that buys NFTs. There are many reasons for this, but it boils down to one thing: scarcity.
Scarcity creates value, so if you want to build an audience for your NFT, you need to make sure that there’s only a limited supply available on the market (or in the world).
Where can you buy and sell NFTs?
There are many different places where you can buy or trade non-fungible tokens. Some of the most popular sites include:
Cryptokitties – CryptoKitty is perhaps the most well-known NFT game out there right now. Players buy and sell unique digital cats using Ethereum (ETH) tokens that cost anywhere from $20 to over $10,000 each!
Ethercraft – Ethercraft is a fantasy roleplaying game that uses NFTs to represent characters and items within the game world.
Are they worth anything?
The answer is complicated! There’s no straightforward way to value an NFT because there isn’t any central authority that determines its price. Instead, the market decides how much an item is worth based on what people are willing to pay for it during an auction or trade transaction.
If you want to sell your NFTs, you’ll need to find someone who wants them enough that they’re willing to buy them at the price you set (or higher).