What is NFT and How Does NFT Work
What are Non-fungible tokens (NFTs)?
Let’s take the example of the famous renaissance masterpiece, The Last Supper, to help you understand better! You can photograph the artwork or purchase a print. But only one original painting by Leonardo Da Vinci will ever exist. That is exactly the case with NFTs too!
In the digital world, NFTs are unique assets that you can purchase and sell like any other piece of property. A digital file, including the art that comes with an NFT, can be copied as many times as you choose. However, it still won’t be the original artwork. Hence, NFTs are designed to give you something you can’t get anywhere else: ownership of the work.
NFTs can refer to digital files like photographs, drawings, videos, music, avatars in online games etc. You can compare digital tokens to ownership certificates for virtual or actual assets. The current buzz is focused on leveraging the technology to sell digital art. The Beeple’s artwork mentioned above is the perfect example.
The majority of NFTs are stored on the Ethereum blockchain. It is a distributed public ledger that keeps track of transactions. They can be purchased and sold like other physical pieces of art. Their worth is mostly determined by market and demand. NFTs can also include smart contracts that, for example, offer the artist a percentage of any future token sales.
Why Do People Purchase NFTs ?
When you buy an NFT, you usually get some basic usage rights. For instance the right to publish the image online. There’s also the bragging rights of owning the work. It is backed up by a blockchain entry.
They are similar to any other collector’s piece, such as a painting or a sculpture. You are paying for a file and documentation that you own the original copy rather than a tangible item. Furthermore, one of the most obvious advantages of purchasing art is that it allows you to financially support artists you admire.
6 Best Marketplaces to Buy NFTs
Several marketplaces have sprung up around NFTs, allowing users to buy and sell them. Here is the list of some of the examples:
OpenSea is a non-fungible token (NFT) marketplace that allows users to find, collect, and trade blockchain-based digital collectibles, gaming products, and other virtual goods. Anyone on OpenSea can use a smart contract to buy or trade these assets.
Rarible is the proprietor of a community-owned NFT marketplace where people may purchase and sell digital art. You can use it to make, sell, and gather digital objects that are blockchain-secured. Its marketplace enables ethereum users to manufacture and sell digital collectibles by allowing them to trade liquid intellectual assets and any digital material with licensing via NFT tokens.
3. Nifty Gateway
Nifty Gateway is an exclusive marketplace dedicated to the Nifty team’s handpicked artwork and music. This permits some of the top artists and musicians in the world to develop and sell NFTs. Nifty Gateway takes NFT deposits. You can apply on the website to become a Nifty creator and sell your own artwork