NFT financing! NFT investing! NFT fraud! Seeing all this online news if you ever raised your eyebrow and said “What the Hell is an NFT!”, well this article is for you.
So NFT simply translates to Non-Fungible Token which is a unique token that cant is interchanged. Any digital data can be minted into NFT through blockchain technology. The NFT lets the digital artwork have a unique identity that preserves its value.
How will people know that you own the NFT?
Prior to NFT, it was quite impossible to track any digital artwork, meme, or data to its original creator. However, through NFT the creator/owner now can be tracked now. This is the same as cryptocurrency. The blockchain ledger saves all the transaction information and provides a unique code to that particular digital art; therefore, the information is open and can easily be identified who owns the NFT.
What if anyone copies or replicates your NFT?
Yes, they can however they won't have the right to use it. By buying an NFT, you are owning the right to that digital asset and have a unique code attached to it. As a result, despite copying it, it would not lose its unique identity.
How buying an NFT is different from buying a physical artwork?
ART is the expression of life. The best artworks are never made with the goal of financial gain. The irony is those are the artworks that are most valued financially. Despite some artwork being crazy expensive, there always will be art enthusiasts and NFT will help them secure their acquisition. Previously, the artworks are copied by scammers to scam art enthusiasts. The question “What the Hell is an NFT!” is the solution that will diminish scamming. The artist will get acquire their desired value. Not only artwork, audio, song, and videos, any digital data can be turned into NFT. This is the future of the digital entertainment business, and art business.
How the transaction of NFT works?
The curiosity of asking “What the Hell is an NFT” actually arises from the investment opportunity that comes with NFT. This is not a technology that helps Art enthusiasts, it is attracting lots of investors due to sheer profitability. NFT can be bought and sold through a cryptocurrency wallet. There are several wallets available. The biggest NFT platform in the world is OpenSea.
What are the risks if there are any?
There are risks associated with the NFT world as it is still very new to the market. Some NFTs are overvalued and buyers after buying can’t able to sell them. There are risks of hackers and scammer who scams people through fake NFT sites. Henceforth, it is suggested to research and understand how NFT works prior to investing in it.
End Note:
NFT is the future of the contemporary world of digital art. Creators are quickly leaning towards it. The question “What the Hell is an NFT” won't be one of the most asked questions in near future because it will be same as any other technology.
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