So “What is an NFT?!” you might be asking yourself. All the while hearing about them from every single corner of the internet… There was no escaping this term in the past year. If you still don’t understand what the hell NFTs are – here’s your chance!

The world of virtual currencies keeps changing, surprising, and producing innovations in all sectors of our lives. In the last year 2021, the NFT world has started to explode with collections of art, collectibles, and works issued on the crypto network in the form of NFT.

Everyone heard of the term NFT in the last year… but surely many of you are asking yourself what the hell is this NFT?

So let’s start right from the beginning, what exactly is NFT ?!

What is an NFT exactly
Let’s dive into the depth of the NFT world

NFT stands for Non-Fungible Token

“Yes, it does not really mean much to me” – I hear you say

So let’s get clarify and understand what that means.

Let’s start with the simple part – Token is a currency – like all the currencies on the blockchain, like Bitcoin and Ethereum and other currencies.

Non-fungible – irreplaceable. Here lies the uniqueness of the NFT and the reason for the popularity and “obsession” created around the subject.

Let’s go back a bit and explain about regular coins. In the world of crypto, we have many coins, over +10,000 different coins – we will focus for our example on the second largest currency, Ethereum.

On the Ethereum network, the main coin is Ether. Each 1 Ether coin is equal in size and features to another 1 Ether coin. I.e. 1 ether = 1 ether. Just like 1 USD = 1 USD. That means that Ether, like the USD, is a Fungible token.

NFT coins change the game in this respect. NFT coins give uniqueness to each coin that is minted (created) on the network. That is, a coin with a name, features, and unique image can be produced. Each NFT coin minted on the network is unique and non-replicable giving the ability to produce exclusive and unique coins.

This creates a situation where each NFT coin has its own speculative and sentimental value, just like a collection of stamps or special works of art, based on the artist who created it, the uniqueness, features given to the coin, and the aesthetics of the work imprinted on it.

There are many types of NFT, from NFTs that contain arts, music, and photos to NFT of tweets from Twitter, articles on websites, and even short NBA sports clips.

NFT can be produced from anything, so this technology has become groundbreaking and has many meanings for its creators and consumers.

Okay, so what exactly are the uses of NFT?

NFT itself as a currency has no definite use, but there are some possible uses/benefits to NFT’s.

It all depends on the type of NFT you buy.

Common types of NFTs include:

1. NFT is valuable in the real world –

an example of this is the NFT collection of bands that produce a fan club around them. The Avenged Sevenfold band has created such a collection that gives fans special benefits such as raffles for show tickets, no-queue entry for shows, merchandise and meetings with the band. In addition, there are rarer NFTs that the band has released that give their holders the option of 1: 1 meetings with the band members, music lessons and more.

NFT's in the real world
The Deathbat Club – Avenged Sevenfold’s NFT Club

2. NFT Collectibles –

Most NFTs fall into this category, examples of which are independent artists who have issued an NFT collection and are known to the general public. The value of these collections is speculative as it does not rely on real value in the real world but on public opinion and price fluctuations in the market. The NFT of a famous artist, or a public figure of course will be worth more because it is linked to the value that the artist/creator gives and provides – especially if integrated into the community or with some real value in the world.

3. NFT Luxury / Status Symbol –

There are certain NFT collections that have gained prestige and sympathy from powerful and celebrity people, and as a result have become a status symbol that many celebrities are interested in purchasing and possessing. An example of this is the Bored Ape Yacht’s Club collection, this collection allows the holder of one of the NFTs from the collection to enter exclusive yacht parties around the world, and now its prices have turned astronomers on a scale of 100 Ethereum to the floor of the collection. 100 Etherium is worth approximately $ 300,000 as of this writing.

At the time of writing this Ape is worth 78 ETH = $205,165

The value of NFT is speculative and relies on a number of components:

  1. The community around the NFT
  2. Its true value in the world (Does it provide any benefits)
  3. Public opinion around him
  4. People who hold it
  5. The degree of publicity and prestige of the artist

To a large extent, the value of the NFT is determined in a way to the art world as we know it, the essential difference being that the art world to date has not been accessible to the general public, and was closed to a single percent of the population. In a sense, NFT technology is changing this and making art and art collections accessible to the forefront of the mainstream and the general public.

The most expensive NFT creation in the world

This is the most expensive NFT that was ever sold for $69M Dollars. Masterpiece or not?

At the beginning of 2021, the world’s most expensive NFT work was sold by the artist Beeple, for about $69 million in Ether.

The NFT world now holds within it from works of art to communities and musical works and later the NFT world may reach all sectors of our lives as detailed later in the article.

Is the NFT a passing fad or is it here to stay?

It is difficult to know what the future holds for NFT technology, but one can look at the trends and movements in the NFT markets and understand that there is more to this than just a passing fad. This is because NFT provides artists and creators with an unmediated communication channel with collectors and fans.

The power in NFT is the commonality that NFT creates, a sense of ownership that people lack in the digital world. This is basically a digital purchase that the collector purchases and receives satisfaction from this very act.

When you combine this with the community and the benefits of owning a particular NFT like a favorite band’s NFT, or an exclusive community, you get an interesting and valuable product more than just a digital image that can be downloaded to your computer.

This internet sensation was sold as a one of a kind NFT.

Future uses of NFT

The current use of NFT at the moment is mostly in the artistic fields, of art, music, sports, video, and graphics. In the future, there may be other innovative and interesting uses, which will bring solutions to institutional bodies as well.

NFT technology makes it possible to produce a unique coin with its own signature, without the possibility of copying, reproducing, or creating a pirated copy.

That’s why we may see in the future government and institutional NFT’s use cases such as:

  • ID
  • Driving License
  • Matriculation certificate / graduation
  • Car ownership
  • Property ownership
  • Train and bus tickets
  • Club members in the marketing networks

And many more that we can’t even think of at the moment! Thinking about this makes me excited, I hope you can feel this too now!

It is still unclear whether institutional bodies will go in this direction but technology allows this already today and allows an excellent replacement for certificates that can be copied and reproduced without any limitation. NFT provides an efficient and immediate technological solution to this problem.

NFT brings power back to artists

Snoop Dog Is early on NFT's
Snoop Dog is early to the NFT party

For years, the art and music industry kept the artists “bound” to heft contracts. It was their attempt to create music and distribute it to audiences. To this day artists have not had direct access to sell their art on an international scale to their fans.

The age of social networks and streaming companies have indeed begun the change, but the NFT continues it and takes the artistic freedom of the artists a few steps further. NFT is built on the blockchain platform, which is a free and unmediated platform. Due to that, artists can sell their works directly to the end consumers without entities linking them along the way.

Famous artists who have already joined the NFT movement and may launch albums and music on NFT in the future:

  • Snoop Dog
  • Kings of Leon
  • Avenged Sevenfold
  • Eminem

And many more artists we believe will join in the coming years in this hot scene.

Where to buy NFT?

The NFT can be purchased from the artists directly or usually through the world’s largest NFT platform – OpenSea.

The platform allows you to view and trade NFT works and issue your own NFT for sale.

The platform has a wide range of NFT works, and there is also a blue V on works that are officially approved as significant and reputable.

Examples of famous collections:

  • CryptoPunks
  • Bored Ape Yacht Club
  • Axie Infinity
  • Cool Cats
  • Decentraland
  • Meebits

How to buy an NFT?

To purchase an NFT, you must first open a crypto wallet with the option of connecting to the network, we recommend METAMASK, an excellent etherium wallet that allows connection to all known applications in the field.

After downloading and installing the wallet, you must now open the wallet and follow the steps.
Back up the SEED PHRASE on a sheet of paper and not on the computer. You must list it in at least two different papers and keep it in secure places in the house. If you have the option, I recommend that you keep one copy in another location.

After opening the wallet, you must purchase Ethereum through one of the exchanges or directly from the wallet and transfer it to your Metamask wallet.

Finally, you can connect the wallet to the Opensea platform and purchase the NFT you are interested in.

The world of the Metaverse and NFT’s

NFT in the metaverse
How Life will look like in the Metaverse(?)

In recent months, all the technology giants – Facebook, Nvidia, Google Apple, and Microsoft – have announced that they are starting to build the world of the Metaverse. The Metaverse will consist of countless possibilities and worlds of game and virtual reality that will allow us to experience the digital world in a much more realistic way.

The NFT world is closely connected to the worlds of the Metaverse where it will be possible to purchase each item as an NFT.

The Decentralend platform allows participants access to a virtual game where all the assets are associated with the NFT. People are already investing thousands of dollars in purchasing areas and lands inside the platform that they believe will have a higher value in the future .

In conclusion

Hopefully, this article helped you understand and dive into the world of NFT and got you interested in the immense potential that lies within it.

If you liked the article, and want to dive deeper, read the Ultimate Guide To Cryptocurrencies here.

Join my email list to Keep up to date and discover all the worlds in which the NFT and crypto is going, I will make sure you stay up to date with the trends!

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Yours,

Limitless Reader