NFT101 — Intro to NFTs
What even are NFTs? An intro to NFTs
I’m sure all of you have been seeing the letters NFT all around the internet. Recently, I was curious about what NFTs are so I did some research.
NFT stands for non-fungible token, but what does that mean anyways?
Non-fungible means non-replaceable, meaning that particular item is unique. Whereas fungible items are replaceable, or interchangeable for each other. Obviously, non-fungible items are a lot more valuable, since only one exists.
NFTs are part of the Ethereum blockchain and are exchanged through the public record. When a transaction is approved, a person’s coins are exchanged for a token and this person now owns this non-replaceable or non-fungible token.
So what can be tokens anyways?
Currently, there are thousands of kinds of NFTs, ranging from music, to art, to NBA moments.
How much are NFTs selling for?
The price of NFTs differ depending on the piece of work. Similar to the art industry, the price of a NFT depends on the market demand. The more people interested in a particular NFT, the more the value increases. Some notable NFT purchases include a piece by Beeple that sold for $69 million, and an NBA Top Shot video sold for $208k.
So why are people paying so much for NFTs?
Similar to the art industry, when people develop excitement or hype around a particular piece and that artwork is unique, it then becomes valuable. Now we are able to do this through technology as a form of digital art collecting. NFTs give the purchaser ownership of the work, similar to physical art. NFTs can be like paintings where there’s only one version or have a numerous number of copies of the same work.
What is the point of NFTs?
NFTs provide a way for artists to create work and sell it. As a buyer, you have the opportunity to support artists and own a unique piece of work. With ownership, you have rights including using the image and reselling the NFT for a profit if it goes up in value. Some people see this as the future for art collecting.
What do I think?
Personally, I think the concept of NFTs is really cool, as they are revolutionizing the art industry through digital art. Recently the WITS+ team hosted a workshop on how to make your own NFT and the process is actually quite simple. It actually got me thinking about selling some of my own NFTs. I think it’s a great opportunity, especially for digital artists and designers to sell and market their work. However, I am still a bit hesitant to invest in NFTs as I’m unsure how the future value of the work will hold up.
Author: Samantha Su
