What are NFTs?

Non-fungible tokens (NFTs) are a digital asset representing real-world objects, such as images of art, clips of music, and even digital fragrances on the internet. NFTs are purchased and sold online, frequently with cryptocurrency, and are generally encrypted with the same underlying technology as other cryptocurrencies—blockchain. Although NFTs were first brought to light in 2014, these specific assets have become increasingly popular today as a way to buy and sell digital artwork and other one-of-a-kind digital pieces. 

Usually, crypto-assets provide an infinite supply for users to trade and purchase NFTs digitally. NFTs go against this standard—being non-fungible, they are generally one of a kind or are one of a limited quantity. By doing so, NFTs create a higher value for the given asset that is in demand.

NFTs are tracked on blockchain platforms to provide the verified owner with proof of ownership, which is separate from copyright, and are often part of the Ethereum blockchain, by which they use individual tokens with additional information stored. This information varies from music and art to other forms of movable digital assets in the format of JPG, MP3s, GIFs and other downloadable files.

A recent example of the use and expansion of NFTs is by Mike Winkelmann一a digital artist who goes by the name of “Beeple”一who made a record-breaking NFT sale with the auctioning of his artwork. After more than 180 bids in the final bidding hour, a JPG file was sold in a digital auction held by Christie’s, with the final sale of $69.3 million. This sale broke records for the buying and selling of digital artwork and outbid physical works from famous artists like J.M.W. Turner and Francisco Goya. “Everyday一The First 5000 Days,” a collage of every single image Beeple has shared online since 2007, became the third-highest auction price acquired by a living artist.

How to purchase NFTs

NFTs are complex and carry different value drivers, creating a tough market to buy and sell in. If you are looking to purchase NFTs, you will first need to acquire a digital wallet that allows you to store NFTs and other cryptocurrencies specifically. You can likewise purchase with cryptocurrency, enabling you to move it from the exchange to the wallet of your choice. Due to the excess demand of NFTs, they are often released at specific times known as “drops,” which creates an even higher demand for these digital assets. Popular platforms to browse and purchase include OpenSea and Nifty.

Where to buy NFTs

The following are few of the many available NFT marketplaces:  

• Open Sea: The largest and most high-volume of digital NFT marketplaces, Open Sea features a varied selection of NFT collectibles, from art, to sound loops, to real estate that users can buy in fixed-price directly from sellers or in auctions. Likewise, the platform takes a bevy of payment methods—150 in total.
• NBA Topshot: NBA fans can collect and trade exclusive digital basketball content—like video highlights and player stats. 
• Axie Infinity: Akin to Pokemon, Axie is the most popular game operating on the Ethereum network. Users collect pets and plots of land on the platform’s online marketplace and battle owners to secure their farm kingdoms. 
• Sorare: A crypto, blockchain-based fantasy soccer league, where players are collected as NFTs. The platform is particularly high volume, with a reported $13M in Ethereum spent in February of 2021.
• Nifty Gateway: A peer-to-peer marketplace that works with artists to host Nifty “drops”— a collection of their artwork, released every three weeks, in NFT form. After a “drop” sells out, users can buy these Nifties on the Gateway’s marketplace. Notable features include Beeple, Playboy, and BD White.
• Rarible: With a layout like that of Spotify, users can easily mint, sell and buy a multitude of NFTs on the Ethereum blockchain. 
• Decentraland: Requiring a VR headset or web browser, Decentraland is the first-ever metaverse world based entirely on the blockchain. As an integrative marketplace, users can amass and sell land, avatars, avatar clothing and more while exploring a variety of digital worlds—space realms and underwater kingdoms included. 
• MakersPlace: A creator-oriented platform—featuring films, landscapes and more—with each piece signed by the artist and verified permanently through the blockchain.   
• Zeptagram: This Swedish platform lends musicians the ability to sell their music as NFTs, giving fans and investors a portion of ownership rights via smart contracts. This, then, translates into both the musicians and their supporters earning secondary sales and royalties as the invested track circulates.

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