▷ Know what NFTs are and what they are used for

 

Know what NFTs are and what they are used for

Cryptocurrencies are gaining more and more ground, strength and popularity, while banks around the world are working hard at full speed to digitize and avoid losing their financial monopoly.

Under this circumstance, a new option has emerged with certain peculiarities among the alternatives to traditional currencies: NFT or non-fungible tokens.

This market has exploded in the United States and around the world. More importantly, according to a study by Non Fungible, it has aroused the interest of companies such as Nike, Ubisoft or Louis Vuitton, and has sold more than 250 million dollars.

Now, the dangerous speculative explosion in the use of NFT for art trading has begun.

What is a Non-fungible token and what can it do for me?

They are vouchers or digital tokens, but unlike cryptocurrencies like Bitcoin and Ethereum, they cannot be exchanged with each other. Why? Because each one is completely unique, no two NFTs are alike. In the digital world, tokens are a unit of reference.

It is like having a 1 dollar coin, each coin has a different fingerprint or reader. What's so special about this? It makes NFT tokens ideal for verifying ownership of unique digital items, such as encrypted collectibles or digital art.

Furthermore, another characteristic of NFTs is that they are indivisible. For example, you can't send half of the NFT to someone, but you can with Bitcoin and other cryptocurrencies. It should be noted that there are two standards for NFT tokens: the original ERC-721 and the more current ERC-1155.

The basic difference is that the most current standard aims to handle multiple types of tokens through a single smart contract, whereas in the original standard, each type of token requires a separate smart contract.

How to create an NFT Token

No matter what many people think, creating a non-fungible token is a very straightforward process, especially for those who already have experience buying and selling cryptocurrencies:

First choose the blockchain you will use (Bitcoin or Ethereum), with Ethereum being the most popular for this occasion. You must have at least 50 USD in your Ethereum wallet and access one of the platforms such as Opensea where you can select the files you want to tokenize.

What is the initial price of an NFT Token

The reality is that anyone could tokenize their work to sell it as NFT, but as news of millions of dollars in sales broke, interest from people increased.

On February 19 the famous meme with a flying cat and a cookie body sold for more than $ 500,000. A few weeks later, Canadian singer Grimes sold a series of digital works for more than $ 6 million.


Post a Comment

Previous Post Next Post