What are NFT’s?

NFT’s stands for “nonfungible tokens.”

Nonfungible, simply means you cannot exchange it for another thing of equal value. You CAN exchange a $10 Bill for 2 $5.00 Bills. And one bar of gold could be traded for another bar of gold of the same size. Those things are fungible. An NFT, though, is one of a kind, unique item.

The token refers to a unit of currency on the blockchain. It is how cryptocurrency such as a Bitcoin is bought and sold on markets.

“Remember when people would stand in line for that newest pair of Nike Air Jordan’s at the brick-and-mortar stores? This is the digital twin!

NFT’s have brought together a certain culture and is a bet on the future. It also opens up a very lucrative market!

Most NFTs are part of the Ethereum blockchain. Ethereum is a cryptocurrency, like bitcoin or dogecoin, but Ethereum’s blockchain will also support these NFTs, and will store extra information from these Non-Fungible items that makes them work differently from ETH coin. It is worth mentioning that some other blockchains can also implement and support their own unique versions of NFT’s.  

What Sort of Items would I find at the NFT store?

NFTs are generally anything digital such as drawings, music, unique collectable items, etc. but a lot of the current excitement is around using the tech to sell digital art.

Where would I look to find these Markets?

You can find several marketplaces now that have raised around NFTs, which allow you to buy and sell these NFT’s. These include OpenSea, Rarible, and Grimes’ choice, Nifty Gateway, and several others.

Think there cannot possibly be a market for digital art?  Think again!  This is an example of an Artist and his screen name is “Nifty Gateway.”

Look at those prices!!  Quite amazing!! 

Or maybe you prefer kitties??  Take a look at this:

NFTs really became technically possible when the Ethereum blockchain added support for them and one of the first uses was a game called CryptoKitties which allowed users to trade and sell virtual kittens.

Even though I love kitties, I cannot say I love them $170,000 worth!

Which is the price that someone gave for the above image!!

“The elemental thing that you’re buying is code that manifests as images on the screen. You are buying an image, or a unique and different format of art.

Remember, when you buy an NFT, you are usually not getting the copyright or trademark to the item. And Even though you own an NFT does not mean you will not see endless other versions on the Internet. There will be. It is, after all, the Internet.

Still, NFT enthusiasts express that owning a piece of code in a blockchain has proven to be an incredibly valuable thing.

“You are not really buying the picture; you are buying the property rights to the picture.”

How do you buy or sell an NFT?

Follow these steps:

First, you would need to buy a cryptocurrency, like Ethereum. Once you have some, you can go to an NFT marketplace. Some of the popular ones include known origin, Rarible and OpenSea.

There, you can take a look around, bid on an NFT which you are interested in and wait for the auction to end. If no one outbids you, you win the auction and the bragging rights to the item.

How do you make an NFT?

You can Log on to one of the NFT marketplaces and upload a file. This process is also called “minting” an NFT.

You will usually be asked if the item is a one of a kind if there are multiple copies or if it’s part of a collection.

Once you have completed your upload, collectors can start bidding.

Digital artists can build a royalty into their NFTs.  It can cut out the middleman and open up a whole new way to earn money.

If you are not interested in buying or selling them, why should you care?

As tens of millions of dollars in transactions pour in for NFTs, enthusiasts say, NFTs will soon expand beyond trading art, music, video clips and memes. One startup company actually lets people use their NFTs as collateral for loans.

Silicon Valley investors state that the possibility to earn lucrative income in the NFT world are limitless.

When the iPhone was created, nobody would have ever guessed that one of the killer apps was going to be hitching a money-making ride!

What are the risks?

A tech frenzy such as NFT’s could always be a passing fad or stoking a speculative bubble. If you spend a large sum on an NFT and then met with lack of enthusiasm and values suddenly plummet, you could set yourself for a big loss. But optimistic NFT backers say the system’s built-in scarcity should keep values up, as long as the interest persists.

Be leery about works that appear to be created by famous artists. NFTs resembling pieces by the artist Banksy have netted $900,000, but in actuality they are fakes.

Why pay when you could right click on the image and save it to your desktop? That would be free.

Yes, this would be true.

But like with any other collectables, having an original just feels special.

It would be safe to say, what began as a hobby among a group of techies and finance nerds has grown into mainstream adoption and inspired many to create and earn big time!

If you are an artist or collector this may be for you!!

About the author

Born in Illinois and the third oldest child of 10 children. Gail learned many lessons in life that would serve her well in her future. Patience, sharing, compassion, understanding, love, and acceptance were a way of life. Family is significant to Gail as a mother of three herself.
Gail lives by the motto "live and let live," and she takes pride in helping others. Educated, yes, but believes life is the best teacher and learning depends highly on an open mind.

Comments

  1. ail a very nice Primer about the NFT Mania. The art work is selling like hot cakes and one lately by a famous artist went for several millions of dollars as Auctioned recently by Christies auction house. I will be following the trend closely and see where it ends up.

  2. an interesting topic and definitely worth research and exploration — there seems to be a big market for so many different types of internet businesses or ideas — however accumulating one of a kind internet art may just prove to be durable ?? time will tell — thanks for information —

  3. Gail,A very unique article, There is a great revolution in the world of digital art that no one else can imitate,NFT’s can be a source of trade with digital currencies,It remains to be seen how far the value of the Internet and digital currencies will take us.Thank you Gail for interesting article.

  4. Thank you for clarifying NFT’s further, Gail! Awesome post as usual 🙂 I am on the fence with these so far, until I see a really positive way they are being used for the long term prosperity & value of an artist, in any format. I know the blockchain has potential for musicians and is being worked on. And I do believe there is something to come out of NFT’s that will support creative expression. I really look forward to see what our brilliant partners, Bitshareslabs, come up with for our community of creatives!

  5. Great article Gail! Getting an education as we go along. I have never heard of NFT’s, interesting though. I would not think of paying that much money for anything, better use would be to help other people with that money. I guess if one wanted to be that adventurous and exciting that would be one way to go. Yes, I would go the free route as I do almost every day.

  6. For me this is not only a new language in digital but it is also a new world of digital.
    There is so much to learn about new concepts of earning in the digital world, which is exciting. Will follow NFT and watch it unfold. Thanks of the appetizer.

  7. Oh my gosh, Gail, I have learned so much since being with Compumatrix. I am still trying to retain it all. Then you give us this fantastic blog on NTF’s opening the door to so many avenues of Technological concepts via the BlockChain. NFT’s are intriguing to me. You know I must delve into this topic to see what I can see. I have a granddaughter who is a skilled and brilliant artist. She also does graphic design and creates web sites for businesses in her town. I do not know if she knows about the NFT’s, but I am looking forward to having intelligent conversations with her when I learn more. Lol.
    I am intrigued as I have been since my blog about “Companies Thinking Outside the Box”. There was much to be written about each company. I got carried away and had to shorten my discourse of each. I kept finding items of import I jotted down to do more research for future blogs. With my notes and now interest in NTF’s, I am inspired.

  8. Thanks Gail
    Never heard of NFT’s . strange what people can make a lot of money off of these days. I would of never known there was such a thing as of NFT’s .Now I like cats and I must admit those are really cute , but WOW they must be quite the rear pedigreed to warrant those type of prices. Learn something new every day.

  9. Awesome read Gail on again something I never heard of before , NFT’s
    Where in the world do they come up with these Ideas .. wow , and the money that can be made just from code. Quite the interesting concept. I just may get involved in this on a very small scale but I will have to research more before I dip my toes into the NTFs water.

  10. Gail this was a very good read. I don’t think I had heard about NFT’s until I read your post. I remember seeing where someone had paid 67 million for an original digital print but never read the article and now it makes sense. It all came to me this weekend after our local football quarterback Patrick Mahomes II opened his own museum and was going to sell some of his game autograph gear and NFT’s. Everyone is getting into this technology.

  11. NFT has open the doors for many creative aspects using the blockchain in unique ways involving the creative genius never comprehended until know. Who would have thought a artist could sell a bunch of code for 69 Million USD!

    “March 11, 2021, 9:02 AM CST / Updated March 11, 2021, 9:11 AM CST
    By Michela Moscufo
    Christie’s auction house sold its first purely digital artwork Thursday for a record $69 million, the highest price paid for an NFT, or nonfungible token.

    The work, “Everydays: The First 5000 Days,” is by Mike Winkelmann, who goes by the name Beeple. The work is a collage of 5,000 drawings, one created and posted every day for the past 13 and a half years.”

    This new market for anything one can conjure in a minds eye, put to code, and be able to control with a “block” that is unique and safe is beyond most minds. But, it is a reality and just beginning that is spreading like a wild fire that is controlled by code. We are involved in Compumatrix, and this has where it has led us, to exciting NFAT adventures to be boundries yet discovered.

  12. Gail, I had never heard of NTF’s before this article; Thanks. But is all actuality all things can be reduced to code; such as a picture and it’s colors or lack there of when taken digitally is nothing but binary (1010101010) or code, and thue even your favorite song when processed through Audacity and then exported as a file, is nothing more than code,

    So this new way to code and then send through the Blockchain is the next in the evolution of greater things coming, and t make it personal, on a very personal level!!

  13. Wow! Every day something new pops up that people are jumping on and embracing For me I will just sit back and watch this crazy world continue to evolve. At my age I am only interested in enjoying my assets and helping others, and I leave the forthcoming digital age to the future.

  14. HAve been hearing a bunch about these NFT’s Art for the Digital world. Very cool.. I may even try creating a couple 🙂 Can’t hurt and could be quite lucrative. Just another way to earn in the digital era. Thanks Gail. Great explanation of them.

  15. Wow. Just what’s in store for the digital future? I had never heard of NFT’s. Thank you Gail for enlightening me. I am happy to sit back and watch but I have no doubt many in the future will take advantage of ever developing technology and make themselves a fortune. I wish them every success.

  16. I am learning every day! Thanks, Gail, for the great blog. I think I’ll look into this and learn more. I always feel like I have seen it all, then something else pops in! Hello, wake up! A lot going on in the world of crypto

  17. I’m with you on the suspecting it’s a bit “faddish” at this point. Somebody got REALLY creative with this concept! Not saying that this NFT craze will not develop into something more viable for the usage of a LOT of people, in some yet-to-be-seen business models. And it wouldn’t surprise me a bit to see this morph into something completely different in the future – after all, it’s merely the latest manifestation of the multitude of ways the blockchain can be used!

  18. Another great blog. Gail, I had never heard of NTF’s before this article. I recall reading where someone had paid 67 million for an original digital print but never read the article and now it makes sense. This is quite the interesting concept. I just may get involved in this on a very small scale but I will have to research more before I dip my toes into the NTFs water.

  19. Another way to use the digital world for the transmission of a product. It is really amazing when we think of everything that we are coming up with for product and exchange production! NFTS is an interesting concept that is now alive and well in our digital world that is growing at an incomprehensible rate!

  20. This is crazy, I mean the price being bid on some of these NFTs.
    But what could be expected in an “Anything -is possible ” digital universe? Being unique or possessing an original of any item in existence brings pride to oneself even if it means that it is digital and only exists on a blockchain.

  21. WOW! This is awesome and unbelievable technology!! The thought that something could be created on the computer and then sold for such outstanding amounts is just amazing. I can see this being a path for many many people who have lived in poverty all their lives to be an overnight success and for me that would enable them to help lots of others who have nothing!

  22. For those who are creative and love to work with drawing programs, this could open doors that would never before be opened to some! I can see lots and lots of millionaires being made in just this area alone. I agree with Ivy, this is a WOW time to be alive!

  23. Interesting topic. Art generally becomes more valuable as time goes by or if the artist passed away. It would be interesting to observe if this new kind of art would mesmerize the art we already know. Anyway, it is amazing how technology opens new concepts and paths to exercise creativity!

  24. This i my repeat visit in order to learn about NFT As it happens be creating a Buzz on the internet and I read that Bitshare lab will also be providing a platform for NFT’s .My grand daughter is a very good artist and I am going to ask/encourage to look into the possibilities of putting some of her paintings on the various Auction houses that you enumerated

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