In recent months, the word NFT has become a hot topic on the internet. They are the center of attention. We’ve heard that Jack Dorsey’s first tweet, in the form of NFT, was sold for over $2.9 million. A single jpeg digital art piece sold for $69 million in the form of NFT. This was the third-highest price ever paid at an auction for an artwork. You’ll be surprised to learn that the same picture can be easily downloaded from the internet by anyone. The person who paid $69 million doesn’t even own the image’s copyright. That seems strange, doesn’t it? In this article, we’ll learn what these NFTs are, how they function, and if they’re worth what they’re worth.
What exactly is NFT?
The acronym NFT stands for non-fungible tokens. Simply put, it’s a symbol that verifies the product’s authenticity. It’s a one-of-a-kind item that can’t be replaced. NFT documents are safely stored in the Ethereum blockchain and cannot be changed. NFTs are currently focused on visual arts, but they can take any shape, including film, music, and even fonts.
What are NFTs and how do they work?
NFTs are similar to cryptocurrencies except that they store more data than cryptocurrencies. NFT may take the form of music, video, digital art, and many other things thanks to the extra knowledge. NFTs act as a means of transferring value between individuals.
Are NFTs worth millions of dollars?
The value of a commodity is calculated by the demand and supply of that specific product, according to general economics. If anyone is willing to sell a product for a million dollars and a customer pays a million dollars for it, the product’s value immediately increases to a million dollars, regardless of how stupid the product is. That is also the case with NFTs. When all parties agree to a price for NFT, the price becomes the price of NFT.
For the time being, NFTs are in their infancy, but the signs are encouraging. They can be extremely beneficial to creators and collectors, as well as musicians, photographers, authors, and other artists. They may sell their work with a special digital signature embedded in it, which offers prestige and legitimacy while also defining ownership.