The NFT Buzz And Why It's NOT A Trend

NFT popularity has been building in cryptocurrency circles for some time now. And the concept is going mainstream. Because these tokens are often tied to art, which is by its nature subjective in value, many ask are NFTs worth it?

What Are NFTs?

NFTs are digital certificates stored in a digital ledger known as a blockchain. The digital certificate is a representation of a tangible item such as a work of art. The blockchain ensures the cryptography of all the records. No one can tamper with the data of the owners.

To buy an NFT, you will need to visit an NFT marketplace. In most NFT marketplaces, you can only transact using crypto. 2021 experienced the highest demand for crypto as there was a surge to $2.5B, from $13.7M in 2020.

Non-fungible tokens can only have one owner at a time. It also gives the creator a chance to earn a percentage of the sale if the token is sold on.

Why the Buzz?

The main unique factor of NFTs is that they store information. That is why its users can get originality of ownership. It also provides a digital representation of physical assets.

NFT’s have high popularity in the art world. They have enabled artists to earn an income on their creations. NFTs have been in circulation in the market since 2017. In 2020, the NFT market tripled, pushing its current value to over $250 million.

Are NFTs Valuable?

NFTs are helping artists monetize their creations. All the records of the original transaction will always be on the blockchain. This means that artists can attach a high value to anything they create as an NFT. It entails not only art but also music, design, collectibles, and many other things.

NFT Marketplaces

NFT Marketplaces are exchanges where you can buy or sell NFTs. Apart from the regular trading, you can also earn royalties on a distinct creation. If you are the original owner, you can decide how much percentage you want to get from every other later sale. There are many ways of determining an NFT value. Apart from pricing oracles, bidding is also quite common. The highest bidder wins the NFT through auction.

Many NFT marketplace platforms give you the tools you need to create an NFT. They have helped many people make NFTs.

NFT marketplaces such as OpenSea have allowed buying and selling of NFTs. They have a high initial cost. The price is for listing the NFT, and that has been a barrier to entry for some.

Are NFTs Just for Artists

As mentioned, artists have embraced NFTs but that isn’t all they’re used for.

Gaming is embracing NFT, which is a growing industry. Gamers are using NFT tokens for gaming or getting rewards.

NFTs have great relevance in the DeFi industry. They are currently acting as collateral against loans. This is helping people access loans and the DeFi industry to grow.

What does the future hold?

The truth is, NFT provides endless opportunities. It’s a matter of time before people from other industries embrace the technology. Currently, real estate is working on applying NFTs.

Brands also have a lot to enjoy when it comes to benefiting from NFTs. Taco Bell, for instance, did an experiment and sold part of its collection. This was later resold for a higher value.

NFTs are definitely here to stay.

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