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What Are NFTs? And Why Some Worth Millions? Here Is All You Need to Know

Updated: Feb 7

Are you getting more curious to know the worth of NFTs? Well, you sure are lucky to read this because we got you all covered with the basic and important knowledge about NFTs. Time to buckle up your seatbelts.



As the technological world is evolving day by day, some new and exciting terms are being born that we never imagined would have existed. From cryptocurrency to blockchain and from online retailing to NFTs, the world seems to become a new yet transformed technological world to us.


What Are NFTs?

NFT is the abbreviation of 'non-fungible token'. Two types of tokens are fungible tokens and non-fungible tokens. An example can give a clear difference between both terms. For example, you have $100, and you exchange the note of $100 with two $50 notes. In both cases, the worth is the same. Fungible tokens can be immediately exchanged, and the worth remains the same, whereas when you talk about non-fungible tokens, the case is not the same. For example, there is an expensive painting or an amazing piece of art; although you can take a picture of that painting or can have a print of it, you cannot have it with the same value.

In the digital world, NFTs are 'one-of-a-kind assets' that can be sell or buy like property, and they are nontangible. It is a digital asset representing music, art, pictures, videos, etc., that can be bought through cryptocurrency transactions. According to a recent report, by just 2017, $174 million had been spent on NFTs. Now imagine it worth it when you are reading this article in 2021. NFTs contain unique codes to prevent hacking.



The object of art is not to reproduce reality, but to create a reality of the same intensity." — Alberto Giacometti


Don’t Forget NFTs are Different from Cryptocurrency


Although NFT has been built through the same kind of programming as cryptocurrency, these are two entirely different terms. As we have discussed in detail the difference between fungible and non-fungible, now we can have a better understanding when we say that any type of physical money or cryptocurrency is fungible, whereas NFTs are non-fungible.

As money can be exchanged and transactions having the same value, whereas NFTs neither can be exchanged nor they have the same value. This is the main thing that makes cryptocurrency different from NFTs.

NFTs contain special signatures because of which they cannot be exchanged. These signatures make their value priceless.


How Does it Work?

Before getting informed about the system of NFTs, you should know the structure it is based on. They exist in the form of blockchains. The system of blockchains is carried upon distributed public ledger that is being monitored by computers all around the world. This public ledger contains all the records of transactions. Don’t get confused between the similarity of the usage of blockchain in cryptocurrency and NFTs.

The type of blockchain that carries all the information of transactions is 'Ethereum'. Yes, other types of blockchain are also being used, but typically Ethereum is used most commonly.


NFTs contains both tangible and intangible assets like:

- Videos

- Pictures

- GIFs

- Special Collections

- Art

- Music

- Video Games

- Sports Highlights

- Designer Collections

And do you know that a tweet can also be an NFT? Jack Dorsey is a co-founder of Tweeter, and he sold his tweet as NFT worth more than $2.9 million. Yes, you read it right. You should know that there can only be one owner at one time of any NFT. They have exclusive ownership rights that make them unique and more worthy. Once the

Are you thinking about how to buy a painting as NFT? Instead of getting it physical, you would get a digital file of that painting. Isn’t it sound interesting?

Once the transaction is being done, the tokens are being transferred to the owner. For example, in the form of painting, the real owner assigns a specific signature to prove the ownership, and in this way, the creator can store a piece of specific information in NFTs.

What is the Real Worth of Using NFTs?

As we have discussed that NFTs are based on blockchain technology; through this system, NFT allows creators, social media users, and other artists to monetize their work. It gives them a huge opportunity to make a valuable worth of their wares.

Let us take an example of an artist who can no longer afford any gallery for the exhibition of his or her paintings and masterpiece? Isn't NFTs are the best thing he or she should go for? NFTs not only provide a system of selling wares but also increase the worth of their wares. In the real world, when an artist sells his work, he gets a one-time profit, but in the digital world of NFTs, every time the piece of art is sold out, he or she will get a percentage of its profit. This is the most profitable feature of NFTs.


Not only the artworks but also big brands have done auctions through NFTs. We can take Charmin and Taco Bell as the most accurate examples of this case. They auctioned their themed work in the form of NFTs and earned a huge amount raising a big amount of charity. The auction sold out just in minutes.

There was a Gif of a cat with a pop-tart body back in 2011 that went in the form of NFT, and can you believe that it was sold out for $600,000? And then it generated more than worth $500 million sales later in March same year. Observing the rising trend of NFTs, everyone is now going crazy about them, and the wise ones have already started selling their work in the form of NFT. Even celebrities are now getting excited about NFT as they know that it will give them more fame, money, audience, and opportunities. The world of NFTs is changing trends day by day and getting more secured and huge day by day.


Want to Buy NFT?

If you want to buy NFTs, there are some basic terms you should be familiar with, as well as you have them such as a digital wallet in which you can store NFTs and cryptocurrency. You should have some cryptocurrency in your wallets like Ether or any other that is acceptable to your buyer or seller. Some websites offer to purchase cryptocurrencies like PayPal and eToro.


Should You Buy NFTs?

Are you wondering about buying NFTs or not? Well, there are different points of view about this suggestion. Let us dig in more deeply to get you the right answer to this question. Some analysts say that the future of NFTs is uncertain, and investing in them is not safe yet. They add that there is no performance history of NFTs from which we can take an idea of the risk factor in it. According to some other analysts, NFTs are worth taking a chance as if it gets the right audience; you can have the profit beyond your imagination. Are you feeling confused between these two schools of thought? Let us help you by giving the most accurate advice. If you have spare money to invest, you should go with it but don't take the risk to invest your life savings in it. In that case, just wait and watch what happens next and in which direction trends go. According to experts, it is worth investing in as it will surely give you the lifetime profits. You should be well familiar with the trends of NFTs. Observe what types of NFTs people are willing to buy. In the world of NFTs, mostly, the demand is the real thing that drives supply. You cannot resell it if nobody is willing to buy it, or you will have to resell it at a lesser price.

The risk factor is there, but in which business there is no risk? Success lies beyond the fear of failure and risks.


What Makes Cipherem the Most Trust-Worthy one?

Cipherem makes the NFT transactions safe. It is making NFT transactions eco-friendly. Cipherem gives you the proof of authority and creates a safe blockchain NFT and Crypto communities. It enables its users to make a profile and do transactions on their own through it. Cipherem gives you an eco-friendly environment that promotes decentralized finance, also known as defi.


Conclusion

According to some analysts. NFT is the future of crypto transactions. In this article, we got all covers you with the required knowledge of NFT and its relation with crypto and how it is worth millions. Now it is your turn to decide whether you want to invest in NFTs to open doors of opportunities to you or not.


Don't worry; everyone feels hesitant taking the first step, and we can understand it is the most difficult one. But once you take the first step, more opportunities meet you there. Every success is just the first step ahead. Then what are you waiting for?


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