NFT – What Is It and Why Is It So Popular Now?

Non-fungible token or NFT has taken the world by storm in the last few months. It is a rising type of technology and unique proof of ownership that you cannot hold in your hands, for example, a video clip, digital coupon, or digital art. In simple terms, NFT transforms digital works into exceptional verifiable assets, which can easily be traded on a Blockchain. The latter is simply a digital database that supports cryptocurrencies such as ethereum and Bitcoin. 

Understanding NFTs

Cryptocurrencies are like physical money, which means they are fungible. Thus, they can be exchanged or traded for another, and you can even use them to play games like ruletka gra online. It is through its qualities that make cryptocurrency a secure transaction method.

However, NFT is slightly different from the other cryptocurrencies you know. For starters, NFT are irreplaceable and cannot be exchanged. One NFT cannot be equal to another. Moreover, non-fungible tokens are digital forms of assets. Like Bitcoins, these too contain ownership details, which make it easy to identify and transfer between different persons.

How Did NFT Become So Popular?

Have you ever heard of an anonymous artist called Banksy? If so, then you are perhaps familiar with his works. At the beginning of March, a tech company bought a piece of art called Morons for $95,000. Then the executives of the company lit the painting on fire by showing it online. In the end, the company revealed the painting once again but this time around in digital form, which now people know as NFT.

Additionally, NBA recently launched Top Shot, which is an online market, for selling video clips. All video clips come with variable prices depending on their uniqueness, and they all come in NFT format. Those interested in buying them can do so at a price and even resell them for a higher price.

Other examples of NFT versions that have sold for thousands of dollars include the first tweet from Jack Dorsey, which now is selling at $2.5 million, a Nyan cat gif sold at $600,000, and a video clip of a classic LeBron James dunk sold for more than $200,000.

Why Are NFTs Popular?

NFTs are not exactly new. A digital trading game called CryptoKitties was initially one of the original NFTs that was launched in November 2017. These allowed people to sell unique virtual cats that were also stored in a Blockchain. But if this is so, why is NFT so popular right now?

One reason why more and more people are intrigued by NFT is the idea of having a digital asset that someone else can copy and claim its ownership. In addition, some people like supporting the creative work of independent artists by buying their products. Another reason why NFT has become so popular is the high price records, which have attracted lots of crypto millionaires and billionaires.

Are NFTs here to stay? It is difficult to know what the future of these non-fungible tokens will be. They have already drawn curiosity among artists from all around the world. So, we only have to wait and see which direction it will take.