We are now without a question in the digital age today, and with this advancement in technology, we see its influence in many aspects of life as we know it. We have seen its influence in communication and how we interact with each other, we see its influence in education, health, entertainment, advertising, SEO Agency digital marketing, and pretty much everywhere else.
With the influx of bitcoin and other digital currencies such as Ether, Dogecoin among others, we can also clearly see it in the financial sector, with people grossing shocking amounts of profit from trading these digital currencies, we are made aware of its prominence in the market.
Another buzz word which you might have heard of is “NFTs.” For many, this has been a confusing term and concept even when explained. In this article, we try as much as possible to break it down to be as understandable as possible.
So, what is an NFT?
NFT is an acronym for “non-fungible token.” A non-fungible token is a token that is unique and has its own identity. A bitcoin, for instance, is a fungible token because 1 bitcoin is equal to another 1 bitcoin. Singular Bitcoins do not have separate identities or values from each other. Time Magazine defines NFTs as “computer files combined with proof of ownership and authenticity.” And this about sums it up.
On a more technical side of explaining the workings of NFTs, they are essentially a part of the Ethereum blockchain (Ether). Ether is a cryptocurrency that supports NFTs and it is today the most common mode of payment/value for these tokens.
Jack Dorsey, the CEO of Twitter famously sold the first-ever tweet as an NFT for a whopping $2.9 million and this is a prime example of just how NFTs work. One thing many people do not realize is that NFTs are not a new concept, it has been here for quite some time, it has only received massive traction since bitcoins came into the market. The COVID-19 pandemic also played a big part in fostering digital solutions in the economy and this gave way for NFTs to receive more attention and patronage.
One of the great things about NFTs is that it has provided artists with a great means to sell and monetize their art. Digital artists especially have had it hard in terms of profiting from their art and with the dawn of NFT technology, they can now create and benefit from the value of their work. The current market for NFTs has received impressive growth since the buzz started. From high-end collectors, investors, people in tech as well as enthusiasts, anyone can purchase an NFT depending on the value attached. It is also a great way for buyers to support and encourage artists, celebrities, athletes, and more.
With the role that NFTs are also set to play in the new world of the metaverse, if there is one thing that is clear, it is that NFTs are now a part of the digital age and are certainly here to stay.