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What are NFTs or NFTs? How it works? How do you create and sell it?

Explainer: What are NFTs? 

The news about the so-called NFTs or NFTs has become one of the most popular news during the past period, as each period of time appears about the sale of a picture, a music clip, or even a tweet on Twitter for huge amounts amounting to millions of dollars, but despite that, the term NFT is still not A concept that most people have far from being associated with digital currencies or cryptocurrencies.

What is the NFT?

And NFT is an abbreviation for non-fungible tokens or non-fungible tokens, but as it turns out, the phrase “non-fungible” is somewhat vague, in short, it means that it is unique and cannot be exchanged for something else, for example, digital currencies such as Bitcoin It is exchangeable, as one currency can be exchanged for another of the same value, but for NFT they are digital assets, each of which has a different value that cannot be exchanged for other assets.

What is the NFT?
What are NFTs or NFTs? How it works? How do you create and sell it?

While NFTs give a person proof of ownership of a digital asset (a photo, video, drawing, tweet or music track, so that they can monetize ownership or the right to own), because the image or video, for example, is easy to obtain and difficult to maintain after Published online, owning an NFT does not necessarily mean that a person has exclusive rights because anything digital can be copied infinitely.

To be clear, the NFT can be compared to the Mona Lisa, where anyone can go to the museum and see the painting and even take a picture of it, but he can't bring the painting home with him because he doesn't own it, but the painting hanging on the wall in your home is like an NFT board because it's all yours and you decide what you want to do with it.

What is the difference between exchangeable and non-fungible tokens (NFTs)?

All digital currencies or cryptocurrencies such as Bitcoin, Ether, Doge and other exchangeable tokens, where each currency can be exchanged for a currency similar to it, because both of them have exactly the same value, but for non-fungible tokens NFTs, they are considered a form of digital assets , as unlike cryptocurrencies that have a monetary value, each NFT has a unique valuation that cannot be exchanged for another, as it is not possible, for example, to exchange a house for another house on the same street because it has the same area and the same number of rooms.

How do NFTs work?

Non-fungible digital assets (NFTs) are based on the blockchain technology on which digital currencies depend, specifically on the same blockchain technology that the Ethereum blockchain depends on, as the technology can store additional information that makes it work differently from the Ethereum currency itself, and other blockchain technologies can also provide Special versions of its technologies also support NFT.

How do you verify the authenticity of your NFT?

Due to its reliance on the blockchain technology, it is easy to trace it transparently and verify its authenticity, as the technology records the complete history of all its owners, and some see NFTs as a digital contract like various digital contracts.

NFT sales increased from $13.7 million in the first half of 2020 to more than $2.5 billion in the first half of this year 2021, a 20-fold increase.

What forms of NFT can be sold to others?

Any digital asset or digital file in short can be or sold as NFTs, including graphics, music, videos, animated GIFs, and any other digital format, but most non-fungible symbols now are related to digital art, as can a tweet on Twitter, where Jack Dorsey, co-founder and CEO of Twitter, has sold one of his tweets as NFT for nearly $3 million.

NFTs can also be a meme or a comic, as the “Doge” meme depicting a Shiba Inu dog was sold as an NFT or non-fungible digital asset earlier this year 2021 for about $4 million, the meme that inspired the creation of Dogecoin digital currency.

How to create a non-fungible NFT token?

While the value of non-fungible digital assets or tokens can reach millions of dollars, creating an NFT is not difficult at all, as an image or GIF file can be created in any way, including any drawing or photo-editing application or even Windows Paint. , but the user has to choose the format first - it can be any type of digital file - including text, music or video, and the more unique the better.

Once the user chooses what you want to put up for sale, you will need to know the blockchain technology you want to use or simply the digital currency you want to associate your NFT with, Ethereum is the most used cryptocurrency by NFTs platforms, and the user may need some Ether or Ethereum to offer its NFT in a store, where these stores charge a fee for this, except for the open-source OpenSea platform, which provides the process for free, but the user still needs a digital wallet to create an account and register, and after registering in any platform for trading tokens or non-digital assets For NFTS, the user just uploads the digital file and writes some details.

Celebrities like Snoop Dogg, Paris Hilton, and even Edward Snowden have launched NFTs.

How do you sell your NFT once it is created?

After the token you have created is listed on any of the digital platforms or marketplaces, the NFT is available for bidding by others, but a fixed price can also be set on the sale page and the returns you want to get from the initial sale and subsequent sales.

Apart from OpenSea, there are many platforms or stores for trading digital assets or non-fungible tokens such as SuperRare, Nifty Gateway, Foundation, VIV3, BakerySwap, as well as Axie Marketplace, Rarible, NFT ShowRoom, NBA Top Shot, and others.

Is trading NFTs the same as collecting works and artifacts?

As hard as it sounds to comprehend, some people actually think so, as one person paid nearly $390,000 for a 50-second video by Grimes, and another person paid $6.6 million for a video by Beeple, and someone bought People tweeted Jack Dorsey, founder of Twitter, for nearly $3 million.