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What is NFT and how do they make millions

Adults and children earn millions on this, they are produced by world brands and corporations, they are talked about everywhere. NFT became the word of the year according to Collins Dictionary. But what is it and where is the bag of gold hidden in this digital world? We decided to understand and tell how everyone can become the owner of a six-figure amount by selling only one token.

Let’s start with the basics – what it is, how it looks and where to sell/buy

The cherished three letters became known to the world in 2017, but they have produced a boom only now. NFT (Non-fungible token) is a unique certificate in digital form that confirms your rights to own a certain digital item. Translated into a more understandable language, then this is a contract for the sale of real estate, which confirms your purchase and ownership of the apartment.

Another feature is that each token is non-interchangeable, that is, unique. For example, money is interchangeable. You can exchange your 1 UAH for 1 UAH of a friend, and you will be left with the same. You can’t do that with tokens.

In the form of tokens, any digital material can be presented, even the artist’s music album. But most often there are paintings.

If we talk about money, then in the first half of 2021, token sales amounted to more than $ 2.5 billion. In the second half, the amount only increases. For example, the film with Anthony Hopkins will be sold in the form of a token and will not be available on streaming sites.

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Where NFT is stored

Money can be put in a pocket, purse or bank card. But where to look for tokens? NFTs are stored on blockchains, An encrypted Ethereum database.

NFTs exist on other blockchains as well, but Ethereum is currently the most popular.

Each block with data is associated with others, so you can remove or replace it if you do the same with the rest of the blocks. What it means in simple language: it is almost impossible to hack or get false information.

The main question is why

If you’re an artist who digitizes creations, then everything is clear – you get a financial reward. But the main goal of the NFT is to “reify” digital assets, that is, to license all digital content. In theory, this will help protect against copying and illegal use of movies, e-books, music, paintings, skins, textures and so on.

Time will tell how it will be in practice.

Who and how much earned on this

Remember the meme with the girl in the background of a burning house? If not, we remind you:

This is Zoe Roth, who sold the meme through NFT for $500,000. That’s not all. The copyright remains with it, and for each resale it will receive 10%.

The source code of the entire Internet was sold for $ 5.43 million, the starting price was $ 1,000, the duration of the auction was only a week.

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Adidas created the NFT collection in partnership with Bored Ape Yacht Club, Punks Comics and GMoney. Total earnings were $22,000,000. Not everyone received early access to these tokens, but only the owners of NFT from Adidas Originals, GMoney, Bored Ape Yacht Club, Mutant Ape Yacht Club and Pixel Vault.

Each participant received a non-digital bonus – a hoodie with a thematic print. Adidas said that these clothes will be on sale no earlier than 2022.

Remember what you did when you were 14? For example, 14-year-old Abigail, along with her older brother Adam, began working on the Belugies project – they released images of a cartoon beluga whale in the form of tokens. Total sales amounted to $ 1.43 million From each sale, 10% went to the charitable foundation, and Adam and Abigail also transferred $ 50,000 to the account of the Beluga Alliance organization.

How global corporations react to the NFT

Instagram is already developing the possibility of buying digital content using cryptocurrency. We can expect an NFT marketplace within the social network in the near future.

Adobe will soon add to Photoshop the ability to prove that a particular person is the creator of the token. The feature is already called Adobe Content Credentials.

As you can see, the value of author’s content will only grow, and “stealing as an artist” will become much more difficult.

I want to earn and sell my first token – where to start

If your object is physical, for example, a painting, you need to digitize it:

  • take a picture;
  • scan on a 3D scanner / shoot a video / make a sound recording;
  • play the object in programs for working with digital content.

Now in the market the most profitable are 3D graphics and animation. So far, there is no “average temperature” in terms of cost, so the assessment falls on the shoulders of the author. But the fewer instances of one token, the higher its value.

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The most famous marketplaces for the sale of NTF are OpenSea, Rarible, Niftygateway and SuperRare. All sites take their commission (see the rules of the service), often it is tens of dollars. For example, this is what the most popular OpenSea marketplace looks like:

You need to register on one of the platforms, pass verification and confirm the authorship of NFT. If it turns out that the token is stolen, then you are blocked, and digital content is not allowed to be sold.

Keep in mind that each service works with different crypto wallets, which, in fact, will receive the amount from the sale. When your token is bought, the cryptocurrency is automatically credited to your crypto wallet.

Is NFT the future or is it a fleeting trend?

The token market is only developing, and very quickly. Perhaps very soon we will be able to receive documents, diplomas, certificates only in NFT format, since it is almost impossible to forge such data.

NFT is already taking its toll on the creative environment. Once photographers moved from film to digital technology, now they are waiting for another transition. The consumer is interested in new ways of self-expression and content creation, so it is obvious that tokens will not replace other formats, but will definitely take their place in the electronic space.

How do you feel about NFT? Perhaps you have already tried to sell or buy something?

Shubham

Written by Shubham

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