What is NFT (Non-Fungible Token)?

What is NFT (Non-Fungible Token)?

As the value of Bitcoin continues to rise in 2021, many people are now interested in investing in crypto or other digital assets. The types of crypto on the market are very diverse. With the development of technology, more and more digital assets are being created to meet market demand. One type of digital asset that has recently become popular is the Non-Fungible Token (NFT). What is NFT and what makes it so popular?

What is NFT?

Non-Fungible Tokens, or as they are known as NFT, is a very different type of digital asset. This is because the way of trading NFT is different. In economics, a trading asset is an asset that can be easily exchanged for value like money. However, there are also some assets that have unique values such that they cannot be exchanged arbitrarily, for example, property assets such as houses, land ownership rights, and so on. In the digital world, NFTs are the only assets that can be traded like property, but they have no tangible form.

NFT can be interpreted as a certificate of ownership of a digital asset. These digital assets are very diverse, for example, photos, videos, music, and others. NFT technology itself is part of the ethereum blockchain network that has an identification code along with unique metadata that is different from one another. The term non-fungible means that these assets cannot be replaced with other objects of similar units. For example, if you lend one hundred thousand rupiah using 2 fifty thousand to someone, the borrower can return it using 20 five thousand rupiah. However, for NFT, each asset has its own unique value so it cannot be traded with the same value.

How does NFT work?

As a digital asset, NFT is part of a distributed public data ledger that records every transaction activity in its scope. NFT is uniquely created to represent something like music, painting, video games, etc. NFT can be used to collect a physical or digital item that is then converted into a crypto asset which then can then be traded. Buyers of NFT assets will get special ownership rights because the NFT can only be owned by one person. The unique data of each NFT will make it easier to verify ownership and also enable token transfer activities between NFT owners. In addition, the owner can also store personal data in assets such as signatures.

NFT has been around since 2014, but recently it became popular due to a record sale of the most expensive NFT worth up to US$ 69.3 million in March 2021 by a digital artist named Mike Winkleman. This record sale was influenced by the rarity or scarcity of the NFT assets being sold. In Winkleman’s case, his musical works are so unique and rare, so many people are willing to spend a lot of money to own these assets. That sale triggered many people to begin to look at NFT assets and consider the benefits they could get.

Where to Buy NFT?

Interested in buying NFT assets? If you’ve decided to try buying NFT assets, there are a few apps you can use. One of them is a digital wallet used to store NFT and crypto assets and can also be used as a tool to buy NFT assets. Several platforms to purchase NFT:

  • OpenSea.io: this peer-to-peer platform is known as a supplier of ā€œrare digital goods and collectiblesā€.
  • Rarible: is an open marketplace that allows an artist to publish and sell their NFT artwork.Ā  The RARI token also grants holders the right to submit and vote on proposals like management of fees and platform rules.
  • Foundation: in this platform, a person can only create NFT assets from his work if he has received an invitation from another creator. This makes this platform exclusive which can increase the price of the asset.

NFT As Innovation

Many people believe that NFT is one of the biggest innovations in the crypto industry. This is because NFTs can help artists sell their artwork in the form of digital assets. It also helps the artist reach a larger audience and also sell his assets without the need for a third party such as a record company or publisher. The most interesting thing about NFT is that there is a huge investment potential. This is because the NFT token represents a unique asset and is not owned by others, so it will be in demand by investors who value the exclusivity and scarcity of the asset. So, are you now interested in buying NFT?

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