Business

What Are Non-Fungible Tokens (NFTs)

Ever heard of Bitcoin, Ethereum, and the various altcoins? There’s a new cryptocurrency type on the block and it’s called a Non-Fungible Token or NFT for short.

Published

4 years ago

May 15, 2021

Anthony Hill

Ever heard of Bitcoin, Ethereum, Litecoin, and the thousands of altcoins that make up the cryptocurrency world? Well, there’s a new kid on the block and it’s called NFT or short for Non-Fungible Tokens. If you’ve been following the cryptocurrency space in the last few months you know what I’m talking about. For the uninitiated, get ready to be rocked.

What Is a Non-Fungible Token (NFT)?

Non-fungible tokens or NFTs are cryptographic assets on blockchain with unique identification codes and metadata that distinguish them from each other. Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. This differs from fungible tokens like cryptocurrencies, which are identical to each other and, therefore, can be used as a medium for commercial transactions.

Source: https://www.investopedia.com/non-fungible-tokens-nft-5115211

How Are NFTs Used?

The distinct construction of each NFT has the potential for several use cases. For example, they are an ideal vehicle to digitally represent physical assets like real estate and artwork. Because they are based on blockchains, NFTs can also be used to remove intermediaries and connect artists with audiences or for identity management. NFTs can remove intermediaries, simplify transactions, and create new markets.

In fact, in the last several months there have been several large art sales happening with the most expensive (at the time of this post) being the Beeple sale of $69 million. Yes, you read that right. As crazy as that might sound, the NFT marketplace is booming with some crazy digital art sales. Here are 11 of the highest NFT sales.

As NFTs gain in popularity, so are the amount of NFT marketplaces growing in numbers. According to the guys at Influencer Marketing Hub, these are the top 10 Marketplaces for buying and selling non-Fungible Tokens (NFTs):

NFTs in a Nutshell

Source: https://www.investopedia.com/non-fungible-tokens-nft-5115211

If you’re an artist or a digital media creator it wouldn’t hurt to try your hand at selling some of your artwork on one of the many NFT marketplaces. Who knows, maybe it just might be a life-changing experience with life-changing rewards.