What is NFT ? It’s Importance and Transaction Procedure

NFT are just a more digital and less transferable mode of Cryptocurrencies. Like Cryptocurrency they are also created through blockchain method and are used for digital mode of exchange. The NFTs initially started on Ethereum in 2017, through sale of Cryptokitties. They were a mode of art which diversified with time. The concept was to create a digital imprint that can be used as an asset and also should be unique. Hence all the kitties were unique and they can even be merged to create a new version of the same. Hence this way the cryptokitties concept was initiated. However Weird it sounds this is how the journey of NFTs began.

There are a few setbacks to the digital NFT market as well as it has various unique advantages. The NFT market has been growing for a long time as it empowers the creator community. The major form of NFT is created in the form of Artwork or real estate. The artwork related to Apes is very famous nowadays. 

The NFT are even sold in millions of dollars. The major identity of NFT is that it is in a unique form and no one else has the ownership of it except one person. If he or she wants they can create replicas of the same but the uniqueness of the NFT stays with the creator or the buyer. They are just like any other digitally available files but have ownership rights and their valuations depend on demand of the same. Hence the more demand the more value of the NFT.

NFT Insights

NFT are transacted and have their own values. However one NFT cannot be traded with another on the basis of equality or equal value. The reason is every NFT is unique and gains its own value based on its demand. The supply remains constant as every NFT is identical and unique.

Recently, if you follow the news, multiple celebrities have gotten into the NFT business. The major chunk of NFT is held by Gary Vay Ner Chuck. Even the Bollowood stars such as Amuitabh Bachchan, Sunny Leone, Salman Khan etc. Hence the NFT market is gaining pace due to the involvement of celebs in it. The most collectibles among the list are the different kinds of Ape and NBA moments. Even the Artworks such as unique digital images of paintings and real estate locations have also got a lot of attention.

Platforms and Royalties

All such NFT are available at multiple platforms for sale such as Opensea, SuperRare and Rarely. These platforms offer NFTs in exchange for Ether. The major NFTs can be bought using Ether to match the valuation of the same. Hence if you want to buy NFTs from these platforms you first need to buy Ether and transfer the same into the wallet of the creator and then the NFL becomes yours. 

There are other monetary benefits associated with the NFTs such as Royalties. Yes, the original creators or the buyers can add a royalty clause in the NFT. This means every time anyone buys or sells the NFT some transaction value in the form of Royalty Percentage comes directly into the account of creators or buyers without any hassle or theft. This empowers the creators and gives them an open space to showcase their skills and consecutively earn money.

Safety

The NFTs are totally dependent on the crypto system. Among that set, a major chunk is dependent on Ethereum Crypto. Hence the chances for Ether getting out of the market are very minute. Even if the Platforms from which the NFTs are bought goes bankrupt or shuts down their business the devaluation of NFTs gets lost as it becomes hard to trace them.

NFTs are minted (mining in crypto but minting in NFT), and in that process a specific code is received by the buyers or creators and this makes the NFT unique as only one person can have the code to access the same. Hence security of the same is completely associated with that Code. Like Cryptos it also follows the blockchain pattern and hence it is difficult to crack into the same and steal it. So overall NFTs are safe until cryptocurrencies are flushing into the markets. 

Real Estate and Other Examples

NFTs can be copied and replicated if the owner allows the same. In Real estate NFT a metaverse is created which can show the real estate in reality and hence people can buy parts of the same through Actions the platforms selling the same. This process allows buyers to have their unique share in the real estate. It is like an ReIT wherein a pool of money is gathered and invented into a project and later on profit is distributed among investors. However here the ownership is given to the buyers for their share in the NFT.

Other examples of the NFTs are Digital Artworks such as painting or unique drawings and structures having digital imprint. The list even consists of Gaming codes and Gaming Snapshots, NBA collectibles, Some diversified Avatars, Domain names and also tickets for various events. Hence the NFT market is gaining a lot of attention nowadays due to the compounding effect on money invested. However the future of the same is still not sure as the procedure involved in the buying and selling is pretty complex.