Jack Dorsey sold his first tweet at $2.9million and there are many more. So why are the prices of NFTs so high? And what exactly are NFTs? All your questions get answered in this blog and at the end of this blog we’ll tell you how you can earn through NFT
Blockchain has completely changed the way we think about money and created a true era of digital property. If you don’t know about the concept of blockchain you can simply click here.
Bitcoin being the first successful use case for blockchain, Some creative developers expanded the concept of bitcoin as a stored value and digital representation of currency.
Introduction to Smart Contracts has led to emergence of many new applications for blockchain one of which is NFT (Non-Fungible Token).
What exactly are NFTs and How it Originated?
NFT stands for Non-Fungible Token. Non-Fungible means non-replaceable piece of art which is unique and one of its kind. And Token represents a kind of currency in the blockchain world which helps you in transaction.
This creates the ownership of your piece. NFT is a digital container in which you can save any information i.e., Graphics, Music, Program Code, Documents etc. Once the token is issued it is no longer possible to change the information but there is a legit way of transforming the ownership of the item you created in such a way your ownership will always be recorded and it cannot be edited or deleted.
The ownership of NFT is retained on blockchain network and can be confirmed at any time.
This is a transparent system and the records are visible to public.
The experiments for NFT were started back in 2013-2014. There were several tokenization projects on bitcoin but projects like cryptopunks, cryptokittens gained particular fame in 2017. 10,000 pixel cryptobanks were distributed for free and then sold for a penny but in 2021 the selling price of some of these were amounted to 4200 Ether. You heard it right $75million for small pixel art.
Why the value of NFT is so high?
It is because of the unavailability of the product. It is like there is only one original owner of this product which increases the demand of the product, As it is a simple way to prove the world you have something unique which even if you copy multiple times you cannot be the rightful owner.
Why sudden Increased interest in NFT?
Today projects and works sold in the form of NFT for cryptocurrencies are called crypto art also known as digital art.
So you might wonder why is this sudden increased interest in NFT?
It is because NFT has created new opportunities for artist and collector to interact directly. It’s also because of the increase of accessibility of online platform for the purchase and sale of digital art with NFT tech. Also the growth in cryptocurrency rates is attracting new young audience. Due to increase in desire to own virtual products rather than physical art objects with all the attendant concerns about them.
How to earn from NFT?
One of the example is of earning through NFT is a girl named Zoe Roth famously known as “Disaster Girl” sold her burning house image in $500,000.
Another one is twitter founder Jack Dorsey sold his first tweet for $2.9million
There are many more examples but how you can earn through NFTs.
Let’s discuss them here:-
- You can create and sell your own NFT all you have to do is market and create a buzz.
- You can trade NFT. For example, you can buy some affordable NFTs from NFT market and later sell them at high prices.
- You can become a NFT designer. There are several freelancing sites where you can offer your service. Blockparty is one of its kind.
- You can invest in NFT cryptos.
There are several companies who take the license for music companies or also some actors licensed to create their NFTs. There are several artists who are selling their own art as NFT and now they are in such a space where if you are able to create a digital artwork, then definitely you can create your own NFT and explore the technology.
So, This is the concept of NFT. Hope that you found it interesting. Comment below your thoughts on NFTs.