NFT Meaning Crypto: What are NFTs and what are they used for?

What Is An NFT? In an increasingly digitalized world, NFTs are the latest crypto-currencies to hit the mainstream these days. NFTmeaning crypto art.

    Avec l’envolée du Bitcoin et, plus généralement, l’intérêt grandissant de la population pour la crypto-monnaie, de plus en plus de termes obscurs s’insinuent dans notre quotidien. Le dernier en date ? NFT. Cet acronyme désigne un « non-fungible token », soit un jeton non fongible en français. C’est un procédé cryptographique qui permet de certifier de l’authenticité d’un objet virtuel. Comment fonctionne le NFT et à quoi sert-il ?

As news travels fast, it didn't take long to whet the curiosity of the general public. NFTs quickly became popular. If they have applications in the art world, the idea is that they can be applied in other various fields as well, such as video games or sports.

In this article, I will answer all your questions about NFT crypto-currencies like What Is An NFT? How Do NFTs Work? Where can I buy NFT?

what is nft crypto

What is non-fungible?

We speak of non-fungible tokens as opposed to fungible tokens such as crypto-currencies like Bitcoin or fiat currencies like the euro or the dollar. In the financial sector, fungibility is used to refer to two indistinguishable units of value. For example, two one euro coins are fungible because they both have the same value. The same goes for crypto-currency: Bitcoins are fungible assets.

NFTs work in a completely different way. They are non-fungible tokens, and therefore by definition unique. Their value is defined by their rarity: NFTs are non-replicable. Each of these non-fungible tokens holds a digital identification number that serves as its certificate of authenticity. The blockchain technology is used for this purpose; it is also the technology used to record the transactions of all the crypto-currencies on the market such as Bitcoin or Ethereum.

NFT is the abbreviation of the English term "Non Fungible Token". A token is a digital asset issued by a blockchain. In the same category, we find bitcoins, or XRP. 

Created on a smart contract platform, Ethereum, NFTs are however quite different from other crypto-currencies. Indeed, non-fungible means that each unit (token) is unique, and cannot be reproduced. Unlike bitcoins which are fungible, these particular units of currency are equal and identical. They can be similar to real money.

Going back to NFTs, this so-called "non-fungible" property can be used for many things. But what is literally driving the craze behind these tokens is digital art and collectibles. 

In other words, people have realized that a unique digital object can have a significant monetary value, just like a work of art, because of its uniqueness. This is why there is a space that has recently developed in digital art, video games and sports.

How were the NFTs born?

The creation of non-fungible tokens dates back to 2015, the year the video game Etheria was released. NFTs were indeed created in a virtual world! Users could buy, trade and resell parcels of this virtual world. Each of them had its own characteristics stored on the Ethereum blockchain.

In 2017, the concept of NFT took on even more momentum with the release of CryptoKitties, a game offering users to collect dematerialized kittens, much like a Pokémon trainer. Each kitten is represented by a non-fungible token with a unique value, and some of them have sold for thousands of dollars!

Where and how to buy NFT?

There are several online platforms dedicated to the sale of NFT. Among them is Valuables, an auction site where you can buy celebrity tweets in Ethereum. This crypto-currency is the common point of all the NFT selling sites: the transactions all go through the Ethereum blockchain, and it is moreover necessary to have a virtual wallet (or crypto-wallet) to make purchases in crypto-currency.

The leading platform at the moment remains OpenSea. Several thousands of transactions have been made there so far! Buyers buy their NFT in Ethereum. The NFT sale sites are all similar to auction houses: sometimes items are put up for sale at a fixed price, but the majority of non-fungible tokens are sold at the prices offered by bidders.

The NFT trend

NFTs are currently experiencing unprecedented success. The movement began to gain momentum when Jack Dorsey, creator of the social network Twitter, put his first tweet up for sale on the platform for the cool sum of $2.9 million! His buyer, Sina Estavi, received a digital certificate signed and verified by the Twitter creator in exchange for his purchase. More and more atypical projects are participating in the recent craze for non-fungible tokens:

  • There are now virtual Batman figures;
  • A digital mosaic by artist Beeple sold for $69.3 million at auction on March 11 at Christie's;
  • The Weeknd announced the release of a new track in NFT;
  • The start-up Sorare created a Panini album of soccer players in the form of NFT;
  • A virtual house called the Mars House was sold for 288 Ethers, or $500,000.
The art world seems to be particularly fond of this new phenomenon: on March 25, the Superchief Gallery in New York inaugurated the first physical exhibition space dedicated to NFTs, while in China the UCCA Beijing is organizing the first international crypto-art exhibition from March 26 to April 4!

How NFTs work: how do ntfs work technically

NFTs depend mostly on the platform where they are created. In this case, we will focus on Ethereum, which has the largest number of these crypto-arts.

Since we are talking about "ownership" here, no authority, no one can cancel your ownership to an NFT or recreate one exactly the same. Moreover, they are also "permissionless", meaning that anyone can create, buy or sell them without any permission. However, the uniqueness report remains, even though anyone can view it.

Otherwise, an NFT can be compared to a one-of-a-kind trading card in an open display case for all to see. The only specificity is that it belongs to one and only one person at a given time. In practice, it can be represented through a digital artwork, an image. In itself, it is the very existence as a digital object in the blockchain that makes an NFT unique.

Is it possible to buy or exchange NFT?

That's right! NFTs are bought and traded like any other Ethereum-based crypto-currency. But the transactions of these tokens take place on a different platform, or rather on a browser extension: Metamask. It allows you to interact with various components of Ethereum, such as application exchanges. In addition, Metamask can be considered as a digital wallet. It gathers all your tokens created on Ethereum, whether they are fungible or not.

Once the extension is installed, you can directly acquire NFTs on the platform for a fee. The purchase can be made via a debit card, such as Apple Pay or other payment methods. Note that these are really monetary funds, and that vigilance is strongly advised. Indeed, once you have acquired your funds, make sure that your Metamask password, as well as your wallet's private key, is stored in a safe place on your computer.
Finally, when you visit a website that is able to sell you NFTs, or exchange them, simply log in to your Metamast wallet and complete the transactions.

The value of an NFT

In a way, many NFTs are just a digital image. A simple right click of the mouse saves it to your computer. Otherwise, they can be anything digital: drawing, music, AI brain, etc. Even though they reside on an Ethereum blockchain, it is possible to copy a tiny part of them. However, the platform's entry tells you, transparently, who created the NFT and who owns it.

This is how an NFT becomes valuable. If you are a fan of the NBA, it is possible to acquire an official NFT representing your favorite player. In this regard, some NFTs can be considered more valuable than others, depending on who owns them.
Here is an example to illustrate what we mean: for a gamer, it is possible to buy an NFT related to an online game. This NFT can be the object of a particular and unique prestige in the game. Only the owner of the NFT will be able to acquire it. If we stay in this area, the value of this NFT can quickly climb. Sometimes, it can be difficult or even impossible to obtain an item of this kind. In addition, this type of crypto currency, no one can take it from you, not even the owners of the game.

The same is true in other areas. Being a nascent and growing space, a lot of hysteria around the subject appears. Transactions to the tune of several million euros have already been made. Sometimes, some NFTs sell for a huge sum. Or else buy at a ridiculously low cost and then resell with an exponential profit.

To this end, we would also like to point out that the market is subject to a lot of scams. For example, a crypto-currency whale may buy a lot of NFTs to sell to his own account, another Ethereum address. This action artificially inflates the prices of NFTs. In this case, just because an NFT has been traded for a lot of money doesn't necessarily mean it requires a large amount of money to acquire it.

Investing in NFTs: Can you invest in NFT?

If the idea of buying an NFT because you like it is one thing, investing in it is another. Again, we want to remind you that the field is still very new. And like bitcoin, the price of crypto-currency takes into account several other parameters that touch on the economy. Like a work of art, some time had to pass before it could be recognized as such.

Therefore, it is difficult to say whether or not investing in one or more non-fungible tokens is a good or bad choice. Otherwise, if you are considering investing in NFTs, you will have to immerse yourself in a complex world, where each NFT market differs from transaction to transaction. In addition, these trades can be costly due to recent network congestion. Be aware that it is quite possible to find people who would pay hundreds of thousands of Euros for this type of "trading card". This is what makes NFTs so messy on the one hand, and interesting on the other.   



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Hulu Mag : Cryptocurrency News, Cryptocurrency Investment, : NFT Meaning Crypto: What are NFTs and what are they used for?
NFT Meaning Crypto: What are NFTs and what are they used for?
What Is An NFT? In an increasingly digitalized world, NFTs are the latest crypto-currencies to hit the mainstream these days. NFTmeaning crypto art.
Hulu Mag : Cryptocurrency News, Cryptocurrency Investment,
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