What are NFT's?

NFTs are a type of cryptocurrency that is built on blockchain technology. NFT stands for non-fungible token and is a digital asset that belongs to the holder. NFTs can be transfered from one person to another without the need for a third party. They are at the center of this idea that an asset can be traded anywhere, anytime, and for any amount of value with no additional fees or commissions charged by third parties.

NFTs can only have one owner at a time, and the owners are documented and can never be removed. Unlike the current internet, where you can copy a file, and it is the same as the original, in the NFT world, this isn’t possible. There are no copies, only the original. Each token is minted with a unique identifier that has a direct link to the blockchain, which will contain an address.

They are a type of cryptocurrency made up of digital assets that function on the idea of scarcity, meaning that there can only be one asset with the same identifier in circulation at any given time. NFTs can be transferred between users through smart contracts on the blockchain. The key benefit for companies is that they provide a way to retain ownership over their IP, even if it is digital in nature. This opens up a great realm of possibilities where the surface has only been scratched.

How Does the Technology Behind NFTs Work?

NFTs are digital assets that are backed by the blockchain and can be monetized through the use of smart contracts. NFTs have a fixed supply and can be transferred or traded on the network.

The technology behind NFTs is made up of various components - an in-app token, an issuing account, a decentralized exchange, registry, and history database. The components work together to create a cryptographic system that enables NFTs to maintain their value and trade with each other.

What are the Advantages of using NFTs over Traditional Asset Trading?

In traditional asset trading, the cost to trade is high in comparison to the returns that one can generate. For example, if a person wants to transfer $10K worth of gold bullion via wire transfer, they'll have to pay an average rate of 3% per transaction. On top of that, they will also have to sign up for a broker or bank account. These costs can add up very quickly. It is also difficult for many people who don't have large holdings for their own accounts or are using non-mainstream payment methods such as cash or cryptocurrency.

NFTs allow users around the world access to a decentralized market that doesn't require third-party intermediaries for transactions. They are tokenized digital assets typically created on top of the Ethereum blockchain platform. The most popular NFTs at the moment are artwork and music, but there can also be videos, real estate, and just about anything tied to an NFT.

Introduction: What Are NFTs Used For?

NFTs allows artists and content creators a way to sell their wares. It allows the artist to sell their art without paying a broker to do so. The artist can even add in a royalty code that will pay them each time the art is sold, earning a commission on their work. This opens up a whole new world for artists trying to get their work out there. But, they also get residual returns as the art is sold to other people.

Companies have picked up on this latest craze and have used NFTs to raise money for charities with their brands and logos, such as Charmin and Taco Bell. Even celebrities are getting in on the action. However, many NFTs are affordable enough for the common person to trade.

How to Buy NFTs?

NFTs are digital assets that can be traded on the blockchain and represent something of value. NFTs can be used for anything from voting rights, digital collectibles, or even cryptocurrency, to name a few. To get started buying and selling, you will need a digital wallet. Metamask, Coinbase Wallet, Trust Wallet, and Math Wallet are options that support NFTs. You will then need to purchase some cryptocurrencies. Be sure to purchase the type that the NFT provider will accept. You can purchase crypto on platforms such as eToro, Kraken, and Coinbase. However, Paypal and Robinhood even offer this option now. There are some popular marketplaces out there, such as Opensea.io, Rarible, and Foundation. Once you have your wallet set up, you should look over the different options at each marketplace.

How Do I Prove I Own My NFT?

Every NFT transaction recorded on the blockchain has an owner, creator, and history. A great benefit of the blockchain is that it is stored and recorded on so many computers that it would theoretically be nearly impossible to fake however you need to know what you are looking at when verifying data. NFTs are minted or created through smart contracts and the way smart contracts are written include a minting address that can be verified. If your NFT has an incorrect minting address then it is fake. A real one will match the address that is shown on the official site of the creators so you can always check to see if the contract addresses match up.

Here is an article on how to find your NFTs contract address that may be helpful.

How is scarcity made?

The original creator of the NFT determines the scarcity. This is similar to a venue with tickets for a concert. They can sell them all at once, or they might hold off and tell everyone that it has limited seating and only offers up ½ the venue. This will drive the price up. The more rare and scarce something is, the more it could be desired.


NFT projects often have different levels of rarity. For example there may be a collection of 2,000 NFTs in a certain collection and another collection may have 10,000 NFTs. Within that collection there may be different levels of rarity as well. For example there may only be 10 NFT's in a particular collection that have a certain color background. The less a feature is available or the more rare the item usually determines the price or value but not in all cases. 

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