What are NFTs?
NFT (Non-Fungible Token) means 'non-fungible token' and refers to a token that represents a digital asset with scarcity.It uses blockchain technology, but it differs from other virtual assets because it has a unique recognition value. In simple terms, you can understand it as a technology that hides the genuineness among the many contents that are played endlessly on the internet. It is a way to clarify asset ownership by digitally tokenizing existing assets like games, real estate, and art.
NFT can give virtual assets the value of scarcity and uniqueness, and its influence has recently grown around game item trading, online sports, and digital art. With the opening of virtual worlds like metaverse, it has also grown in popularity as a source for investments.
The difference between NFTs and cryptocurrencies
Many people confuse NFT and cryptocurrency, as they are both tokens. However, the two have completely different characteristics. For example, in the case of Bitcoin, more than 20 million are issued and circulated like money, but NFT has only one original. You can understand the 'Digital Certificate of Authenticity' as a collectible.
ย
ย
What are the advantages of NFTs?
Advantages of NFT
1. Scalability & Scarcity
From works of art such as poetry, novels, paintings, games, and other industries, everything can be NFT. Since the game industry is already making money with NFTs, the expansion possibilities of NFTs are endless and can be said to be profitable. In particular, since there is only one NFT or a limited number of it, it also has a rarity that even the creator cannot duplicate.
2. Certificate of Authenticity
The biggest problem online is piracy. With just a few clicks, various forms of information posted online, such as images and videos, can be copied and shared. This makes it difficult to tell which is the real original and which is a replica. NFT can be said to be a guarantee of authenticity applied to these files. You can be recognized for its originality if you use NFT whenever you need to prove that you are a member or when you need to prove anything authentic, such as a diploma or award certificate.
3. Creator royalties
After creating what you want to make as an NFT as a creator, register it on the blockchain and set royalty. For example, if you set the royalty at 10% and then produce and sell a painting, the original author gets 10% each time it is resold. Because it is the resale amount and not the initial sale amount, the more it is sold, the more profit the original author can make.
4. Community bonding
t is a position where one owns creations and has some rights, rather than one where one only consumes them. The owners gather together by using online social networks like Twitter to appeal for the public's sympathies and influence opinions. From the creator's point of view, there is a group that follows them like a kind of fan, and from the buyer's point of view, NFT can be used as a way to feel connected to the creator.
ย
ย
How do I own NFTs?
There are a few ways to own NFTs: minting, buying them in marketplaces like Opensea, receiving airdrops, or receiving them directly from other individuals.
But the important thing is that you must have a wallet. You need to connect your wallet to mint, buy and sell, receive airdrops, or send to others.
- Minting: It refers to tokenizing the ownership of assets with blockchain technology by issuing NFTs at a fixed time and fixed price.
- Purchase: Mainnet and NFTs handled by marketplaces such as OpenSea, LooksRare, and Pala are different. If you select the NFT you want and link it to a wallet that supports the mainnet, you can find the project you want by linking it to your asset without a separate login and purchase it at the price set by the seller or make a purchase offer.
- Airdrop: Giving away free NFTs as an event is called an airdrop. As a result, the airdropper is also responsible for paying the gas fee.
- Transfer to another person : To transfer NFT to another person, you need the other person's wallet address. If you input the address incorrectly when transferring, you need to check carefully because the virtual asset will disappear. However, in Burrito Wallet, you can directly transfer the asset without the NFT wallet address, via chat.
ย
ย