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What is NFT (a non-fungible token), and where can I buy NFTs?

With the existence of cryptocurrency, digital assets is rising. NFT is one of the rising digital assets and it appears as a blockchain assets that attract the attentions of the big companies in the world. Just recently, Nike company announce they bought digital collectibles company (RTFKT). RTFKT is a shoe company that makes NFTs and sneakers for metaverse. NFTs might sound quiet difficult for must people especially beginners. In this article, you are going to learn what NFT is and also where you can buy your first NFT.

Currently, NFT are taking the digital art and collectibles world by storm. With people like Jack Dorsey who sold his first tweet for $2.9 million and Beeple that sold an NFT for a whopping sum of $69 million.

NFTs ( a non-fungible token ) have become an essential part of the digital world.

Non Fungible Token is anything that is indivisible, interchangeable and are unique crypto assets. It can’t be changed.

NFTs have been making headlines lately, some selling for millions of dollars, with high profile memes like Nyan “Cat” and the “Dead” with it sunglasses being put for auction.

There are plenty of skeptics who thinks it is all a bubble that is going to burst. But are NFTs worth the money or the hype that people are talking about?

What is NFT (Non-Fungible Token)?

NFT stand for Non-fungible Token. To better understand what NFT is, let’s take a look at what each word stand for.

  • N – means Non
  • F – mean Fungible
  • T – mean Token

So what are they:

  • Fungible, and
  • Non-Fungible

What is Fungible?

Fungible means something that can be change for something else of the same kind. For example, cash. Let’s say I gave you $100 to give me back in one month, you can give me any $100 back. The value is still the same but not the exact $100 that I gave you.

What is Non-Fungible?

Non-Fungible is an items that can’t be changed or substituted. It is is a type of cryptographic token on a blockchain that represents a unique asset.

Non-fungible items can’t be interchangeable. For example, if I give an NFT, you will give me the exact NFT back. You can’t change it.

A NFT (non-fungible token) is a special cryptographic token on a blockchain to link with a unique digital assets that cannot have an exact copy or be repeated.

Cryptocurrencies coin are fungible token. For example, you can exchange one ether (ETH) for another ether (ETH). NFT can be use to represent a real word item such as Art, Gaming, Video, and Music.

A fungible assets is something with unit of value and can be exchangeable. However, if something is non-fungible, it means that it has a unique properties so it cannot be interchanged with something else.

Non-fungible is an economic term that you could used to describe ‘things like your house, computer, a song, furniture or a panting such as the Mona Lisa.

How do NFT work?

  • NFTs are stored on a blockchain network with a unique code that cannot be changeable.
  • NFT can be used to buy and sell valuable assets like real-estate, cars, land, or house.
  • You can use NFT as collateral to borrow cryptocurrency
  • NFT gives artist direct access to monetize their content directly to their followers without any third-party platform involve.
  • NFTs provide ownership of physical properties in a digitize way.

What blockchain support NFTs?

Below are the blockchains that support NFTs, among them Ethereum and Solana are the most popular NFTs blockchains.

#1. Ethereum

The history of the Ethereum blockchain is rich with data, dating all the way back to 2015. Since then, there has been a lot to happen with NFTs and the Ethereum blockchain. The first ever NFT, CryptoKitties, was born on Ethereum. CryptoKitties is Ethereum blockchain virtual game that allows players to adopt, raise, and trade virtual cats from the safety of your own wallet.

#2. Solana

Solana is a self claim fastest blockchain in the world of cryptocurrency industry. The blockchain transaction cost is less than 1$ compile to Ethereum.

Solana is a proof-of-stake blockchain that support NFTs.

#3. Binance Smart Chain

With smart contract features compatible with Ethereum and low transaction fees, it has become a major player in the NFT market. BSC was developed by the same team that built Ethereum blockchain. Binance is the parent company of Binance Smart Chain ( BSC ).

Binance also has a dedicated team to assist those who want to issue NFTs on the BSC, which has helped the rapid growth in Binance’s NFT market share.

NFTs can be traded in open marketplaces, including Treasureland, BakerySwap, and Juggerworld on BSC, and OpenSea on Ethereum.

#4. Zilliqa

Zilliqa is a smart contract network with a public sharding blockchain designed to have improved scalability facing other blockchains. The blockchain is built in such away that transaction speed is not affected by network growth. It does this by enabling simultaneous chains to perform transactions in parallel, boosting the network’s total performance and capacity.

Zilliqa blockchain support NFTs protects.

Zilliqa investors invest $10million creator fund to support NFT innovation and metaverse space. The blockchain was launched in 2017, Since then has multiple projects throughout the NFT space.

#5. Flow

Flow is a proof-of-stake blockchain. Flow is a fast, decentralized network designed as the foundation for a new generation of games, apps, and the digital assets that power them.

Flow is created by a team that has consistently delivered great consumer blockchain experiences: CryptoKitties, Dapper Wallet, NBA Top Shot.

Top cryptocurrency exchanges currently trading Flow stock are Binance, OKEx, Huobi Global, KuCoin, and Crypto.com Exchange.

#6. Tezos

Tezos is an open-source network for assets and applications that can evolve by upgrading itself. This means it can evolve and improve over time without there ever being a danger of a hard fork. The Tezos network is vast and fast growing, consisting of validators (“bakers”) and users; bakers help validate and secure the network.

Cryptocurrency exchanges currently trading Tezos stock are Binance, OKEx, Huobi Global, FTX, and Bybit.

#7. Cardano

Cardano is a proof of stake blockchain network designed to be a more efficient alternative to proof-of-work (PoW) networks. Since there development, cardano has brought attractive choice for NFTs users do to the low transaction fees.

What can NFTs be used for?

NFT are typically used to buy and sell digital art and can take the form of GIFs, Virtual trading card, Images of physical objects, Games and Musics.

NFT can just be anything. For example, the founder of Twitter, Jack Dorsey sold his first ever tweet for a whopping.

  • Digital Content
  • Gaming items
  • Music NFTs
  • Physical items NFTs
  • Investment and collateral NFT

#1. Digital Content

NFTs power a new creator economy where creator don’t hand ownership of their content over to the platform they publicize their content.

For example, the platform where the artist publicize content sell ads to the artist followers and part of the artist profit is shared by the platform.

NFT afford content creators a unique opportunity to monetize their content and the fund go directly to them. In addition, content owners can program in royalties in their content so they’ll receive a percentage if the content that they sold is later sold to someone else.

#2. Gaming Items

NFTs can also be used to represent in-game assets, such as virtual world which are control by the user instead of the game developer.

NFTs have seen a lot of interest from game developers. Gaming has a huge demand for unique items that are tradable and purchasable. NFT can provide records of ownership from in-game items and bring a host of benefit to the player.

NFT allow assets to be traded from third-party marketplace without permission from the game developer.

#3. Music NFTs

NFTs allow musicians through the blockchain network to tokenize and publish their works. Combining music with NFTs is an excellent idea for a use case.

Lately, musicians and artist have been selling their work as NFTs and earning millions of dollars.

NFT is a great opportunity for musician and artist to monetize and profit from their music as well as other content, the themes of the music and the artist public image.

#4. Physical Items NFTs

By combing real-world assets with NFT, you can prove ownership of a physical property in a digital way. Though the tokenization of the physical items is still very much in a development. But, there are plenty of projects expecting the tokenization of real estate, fashion and cars.

Creating tokenized digital items of these deeds can move highly illiquid items like (a car, house or land).

One day you could buy a car, land, or house as an NFT.

With the development of ERC-721, your Ethereum wallet will becomes the key to your house or car – unlocking your door through cryptographic proof-of-ownership.

#5. Investment and Collateral NFTs

With valuable assets like real-estate, car, land, houses representable on Ethereum blockchain, you can use NFTs as collateral in decentralized loan.

There are DEFI application that let you borrow money by using collateral.

For example, you need BNB and you have ETH, with the defi application, you can collateralize your ETH so you can borrow the BNB you need.

NFT provide such opportunities likewise. You provide your NFT as collateral and borrow BNB. If you don’t pay back, your NFT will be send to the ;lender as collateral.

Benefit of NFTs

  • Monetize: NFTs allow creators to make money directly from their work.
  • Ownership: No two people can own the same NFT. Each NFT has it own unique code this also protect consumers against the risk of receiving counterfeit NFTs.
  • Security: NFT are stored on a blockchain and therefore making it difficult to be change. NFT is “minted” with each token a unique identifier.
  • Royalties: NFT allow content create to program royalties to their content and receive %2-10% interest anytime an NFT is been sold.
  • Loan: You can use NFTs as collateral to take loan. Example, you need BNB, you provide your NFT as collateral and borrow BNB.
  • Permission: NFTs allowed anyone to trade on the marketplace without permission. It does not restrict users over age, gender, or region. Anybody can trade on the marketplace.

Where to buy NFTs

Before you buy NFTs, there are three things you need to consider first.

  1. What NFT market you want to buy NFTs from?
  2. What wallet do you need to connect with the platform and purchase NFTs?
  3. Which cryptocurrency do you need to fund the wallet with in order to complete the sale.

Want to buy NFTs? you can buy NFTs from this market – Binance, KuCoin or Crypto.com.

You can bid on items as you would on ebay, AliExpress or other internet auctions sites.

#1. OpenSea Market

OpenSea is the world first and largest digital marketplace for crypto collectibles and non-fungible tokens (NFTs). The platform was built on the Ethereum blockchain and was founded in 2017 with over 600K + users, 2millions collections, 80millions NFTs.

The platform hosts variety of digital collectible from, video game items to digital artwork.

To use the platform, you need a cryptocurrency wallet such as “TRUST WALLET” or “METAMASK“.

Opensea is open to all, so no application or invite is needed to make use of the opensea nft market.

#2. Rarible Market

Rarible was founded by Alex Salnikou and Alexei fatin in 2020. The platform is a non-fungible token market built on blockchain network which allows users to mint (create), buy and sell digital art.

Rarible is potentially the very first decentralized exchange for non-fubgible token that opted for community ownership and governance.

The marketplace is also a user-friendly platform with special categories.

Rarible connect to the Dapp using a web3 wallet, such as metamask wallet. Once connected browse for nfts you wish to bid or buy.

#3. Binance NFT Market

Binance NFT market is a new nft marketplace to help NFTs creators mint and sell their works of arts. Binance exchange allows it user to trade and create (MINT) non-fungible tokens.

You can even mint your own NFT on both Binance Smart Chain and Ethereum blockchain. You can transfer nfts between the two blockchains.

#4. KuCoin NFT Market

KuCoin is the most advanced and secure cryptocurrency exchange to buy and sell cryptocurrency such as Bitcoin, Ethereum, Shiba, Solana, Tron and Dogecoin.

The exchange was established in September 2017 and has grown into one of the most popular crypto exchanges in the world with 10million registered users across 207 countries and region around the world..

It also support other crypto features such as Spot trading, P2P, Trading Bot, Earn, Margin trading, Leveraged token, Futures trading, crypto lending.

There are other NFTs marketplace out there that you can use to mint your own NFTs.

  • Axie Infinity market
  • NFTKEY
  • Cryptopunkes
  • Foundation
  • BakerSwap
  • Mintable
  • Zora
  • Mintbase
What Is NFT? How do NFTs work?
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