What is an NFT, and where in the world do you get them? Why are they selling for millions of dollars when I can screenshot the image? AND will there be a future for these crazy new things? DPAD and panel will answer all of these questions and more about the NFT craze taking crypto by storm.
What is an NFT?
Credible Crypto defined an NFT as — a unique unit of data stored on a distributed ledger or blockchain. NFTs can be associated with easily reproducible items and the unique use case is that the NFT allows a user to assert ownership of digital information.
Vipul went further into the mechanics explaining the letters N and F in the acronym NFT which stands for non-fungible token. Non-fungible means something unique that cannot be replaced, one cannot exchange for another, unlike fungible tokens where all BTC or ETC are interchangeable, or fungible, NFTs are unique all with different attributes and although they can be traded for things of equal value, they are not the same thing.
What is the best platform to buy NFTs?
The most famous platform is OpenSea with three chains and hundreds of collections. Rarible is next, and there are many others like Bakery Swap, PCS has some, Wax Blockchain which just held a boutique NFT sale for Persons of Interest where our host Ri Ri was featured about an hour after this episode on NFTs launched.
I’ve heard about NFTs in Music, Gaming, and the Art world, how is each sector different?
Gaming can include in-game items, weapons, land, and avatars, as well as boosters to all of those things. Players can earn by playing things like hats, shoes, weapons, a new color outfit or skin, or some other trinket or accessory to customize their experience in the metaverse.
In Music NFT technology is just beginning to be unlocked. The use case for song publishers puts artists in charge and once it catches on will give them a lot more power and will give them a new medium to connect with fans. Concert tickets and sporting events can be tied to NFTs in new ways as well. SnoopDog is playing in the SandBox as we speak exploring the possibilities.
For Art the introduction of NFTs represents ownership of digital artworks, and can allow users fractional ownership allowing more people to invest in something that has the ability to increase in value astronomically as it seems only art can. Super high values can be attained in the art world, as value and beauty are always in the eye of the beholder.
We are seeing a paradigm shift in the way we perceive value.
Why did CryptoPunk ( NFT ) sell for $7 Million?
Buyers who created their wealth in the cryptoverse see no reason to take it out, the Metaverse was an inevitable evolution of the digital currency that gave birth to it, as the underlying blockchain technology makes it all possible. These wealthy users with an appetite for risk, and the fortune to back it up can afford to make wild price speculations, and show us an example of the greater fool theory in action as they flip these items for higher and higher values.
What is the future for NFTs?
The utility of NFTs has yet to be unlocked in this market. If you are just getting into NFTs you are just a little late to NFTs and here are some things to consider if you want to make your first purchase in the Metaverse.
Do you love it? Then it has value!
Is there mining available? This will add value.
Is it tradeable? If yes then the value can go up and down, but is there liquidity?
Smaller collections are typically worth more, but not a guarantee of value.
We hope you understand a bit more about WTF an NFT is now, and would love to hear what other questions you have. Drop them in the comment and we will feature them in future episodes.
DPAD is building a decentralized protocol for crypto launchpad where anyone can raise funds for their business idea. The whole process on DPAD is decentralized and user controlled. DPAD supports the decentralization of crypto, true ownership of crypto assets. Learn more about DPAD on the following links:
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