Have you heard about the NFT market? It is similar to the cryptocurrency market. Here investments are made, but unlike cryptocurrencies, in works of art. You can read how it works in this article.
What is NFT?
The acronym NFT indicates transparent proof of ownership of a digital item and thus allows clear and quick identification of the owner. The item can most often be a picture, video, song, or game item. Non-interchangeable tokens always relate only to a specific unique item and carry owner information. The original is always only one! However, a pile of counterfeits is circulating around the world, which may be indistinguishable from the original. However, ownership of the original is unmistakable and therefore so valuable. For the NFT is important, that the buyer does not necessarily receive the copyright for the item, but only the proof of ownership. Now the NFT is primarily the domain of the art market, various other variants are being considered in the future.
How is it work?
NFTs are stored in cryptocurrencies and contain a unique identifier, i.e. a reference to the digital work to which they are linked and other necessary metadata such as the title and description of the piece. In transactions, the blockchain records which token was sold and who bought and sold it. This keeps a transparent database of all owners and transactions. This is very similar to trading in bitcoin cryptocurrencies. There are special "marketplaces" for NFTs, where all possible items are traded. This is similar to the stock exchange or, for example, the Binance platform for cryptocurrency trading.
How do you set up NFT?
First, you need to set up a cryptocurrency (such as MetaMask, Enjin, Math Walle, or TrustWallet) to support NFT ownership. Then the applicant must purchase ethereum in the order of lower hundreds of crowns. Ethereum is used to pay transfer fees. Then just choose one of the platforms, such as Foundation, Nifty Gateway, OpenSea, Rarible or SuperRare. NFT can be easily created on one of the above-mentioned sales platforms. Again it is necessary to own a crypto-wallet, as a fee must be paid for the operation of the network. The user uploads his unique item to the marketplace and then chooses whether to immediately offer it for auction, direct sale, or hide it in his wallet.
Market successes
The NFT has the greatest use mainly in the arts. However, the phenomenon is beginning to seep into "high" art. You can buy "own tokens" for paintings, sculptures or videos. Now the most valuable one reaches a value of up to 4,200 ETH, approximately 164 million crowns. Petr Mára is probably the largest pioneer of NFT tokens in the Czech Republic. He spent 32 ETH on one of the first NFTs, which is now more than two million crowns. How this platform will evolve will depend on various variables, similar to the cryptocurrency market. So far, however, it has good potential.
