In this article we’re going to tell you by the hand of an expert the functionalities and the utilities of this new trend, “The NFTs”.
This time, we talked with Enzo Soyer, a Blockchain Consultant, CEO of Tenk an NFT Incubator, Co-founder of Fungible Strategy and Business Developer in Cryptoracle. He explained in a nutshell all you need to know and more about the NFTs.
What is an NFT?
An NFT or Non Fungible Token is digital tokens that represent ownership rights over items that cannot be easily replaced. These items may include collectibles, real estate, artwork, physical goods, games, software, etc. Unlike cryptocurrencies, NFTs do not have any intrinsic value; rather, they possess unique identifiers that allow them to be traded, exchanged, bought, sold, and transferred.
The purpose of NFTs is to make easier to trade these unique assets. For example, if someone owns a piece of art, and wants to sell it. The seller can use an NFT, so the buyer can verify (as in traditional art institutions) that the asset is legitimate by scanning its unique identifier (metadata).
As fungible token represents an asset that can be easily copied or duplicated, an NFT represents something that cannot be replicated or duplicated.
How does the NFTs work?
The NFTs work together with a Blockchain Network and in the background there is a software or Smart Contract that allows who buys or sells that NFT to change from one owner to another and split the royalties and money automatically. We are going to explore more of this theme regarding the Smart contract in the next articles, because it is one of the best features that the NFT have to offer.
How can an NFT be used?
An easy way to explain this is using a video game. Fortnite is a popular video game around the world played by young people and adults also (including me). In this game you can buy skins and items to customize your character and game experience. All the assets or skins and items that you bought in the game store, are attached to your account and can not be transferred to anyone.
So, if these skins and items were an NFTs the player has the freedom to resell the items in the moment they want to. Doing this you are the real owner of these digital assets because you have the freedom to resell it if you do not want to anymore. Even the game producers can still earn money from the royalties in secondary sales.
So, in a nutshell, they can even make more money allowing people to resell the NFT and create a new economy inside the game and also encourage people to play more to find potentially expensive NFTs on the game.
Where can an NFT be bought?
There are several ways to find interesting projects to invest in. One of them is twitter, trying to follow hashtags, people around the crypto world, investors, communities or even artists. Stay close to them and see potential collections to invest in.
Another way is to find projects on the marketplaces. If you are interested in projects launched in the NEAR protocol, Parasid or Mintbase are the most popular marketplaces to search in.
Now, if you want a more accurate and easy search try with our launched projects dashboard and check out at the new projects and trends.
Take a look, it’s free.
If you want to hear the entire Enzo’s podcast, keep in touch with us on Spotify and do not forget to follow us for more content related to Blockchain and Web 3.0.
