Let’s start with a simple question related to the topic. Do you like to give credits and want to own the same credits? NFTs work on the same question.
NFTs stands for non-fungible tokens.
The phrase Non-fungible tokens can be divided into two parts to explain better.
Here, non-fungible means non-tradable. For example, I have a 500rs note and you have a 500rs note. The value of 500 Rs will be the same whether it’s with you or me. We can exchange it. Right?
Continue with the same example, When I add my signature and date on the same 500rs note I may demand more money for it. Now, 500rs has increased in value. So, I may not trade it with anyone at the same price but demand more money for it.
Now token is a label denoting its demanded price and ownership. Here, ownership represents the original owner of the note.
Now you have a pretty clear idea about what NFTs are.
For example, you are a graphic designer and you create various images, videos etc. Do you think you get the perfect return for your skills? Probably not. So here NFTs work. You can place those precious images and videos online and assign them to NFTs. Now a kind of auction takes place. You have decided the price should be 1000$. And the buyer likes to pay you 1000$ for the video. And the channel has not stopped yet. He may use it or the buyer places the video for sale asking 1200$ for it. But every time the original owner gets 10% royalty. That’s the best part of NFTs.
The whole system is more transparent due to the account ledger. The NFTs are associated with the blockchain system. You might know how the blockchain works. The owners and receivers entry is managed in the account ledger. So, any person can check the original owner of the coin. Here, NFTs work on the Ethereum blockchain currency. Just like bitcoin. Ethereum is now decentralized and utilized in various sectors. These NFTs are traded with Ethereum technology.
Various websites are available on which you can buy NFTs. Some of them are Opensea, crypto punks, variable, super rare or foundation. Now the system is just like shopping from any other online store. Every art is denoting its rare attributes in percentage. And as per the rarity of the items, the price was decided upon the floor price. You can find the price graph as well. Every item is attached with a token and the token shows the current owner of the item. You can check the item’s activity status. So now buying NFTs is simple.
You may wonder who is willing to pay a huge amount when you can share the art on your social media accounts. Yes. You can share on social media but you do not own the art. These NFTs are giving the rights of ownership of the specific rare art. So, here ownership of the rare item matters the most.
The other reason may be due to its versatile utility. A few NFTs work as membership cards of some groups or associations.
NFTs are also used in video games. For some video games, you are required to buy some characters with virtual bucks. Those bucks you can buy with real money and you can lose all money when you lose the game. Right? Similarly, you can buy NFTs characters and sell the NFTs character on video games and make money from them.
DAO stands for decentralized autonomous organizations. These DAOs work on Blockchain technology. The members of the group collectively decide to buy some NFTs and all the members are the owners of that particular NFTs. The system is very transparent. Every member gets an equal right to ownership.
So you are a unique art creator. That wasn’t enough as always. You need a platform where these arts can get credits. Right? NFTs are that platform that is transparent to buyers and sellers.
Now here comes the crux of the topic. How you can sell your NFTs with profit. There are a few tips and tricks which help you to gain profit from NFT.
So, I hope you Have gathered enough knowledge for NFTs. Make your own unique NFTs and earn huge credits!