What is an NFT?

🤔 What is an NFT ?

☞ An NFT stands for Non-Fungible-Token.

The words Non-Fungible mean unique, one of a kind, irreplaceable.

Token is just to say that it is an item.

So put them together - a unique, one-of-a-kind, irreplaceable item.

☞ NFTs are most commonly traded as a digital artistic image, but can also include music, written words, and basically anything that can take a digital form.

🤔 What's so great about NFTs ?

☞ NFTs are a modern and innovative alternative to more traditional art forms 🎨 , they are published and traded online via blockchain. Therefore, NFT art is more accessible than traditional art. You simply browse the marketplace of your choice (e.g. OpenSea or Nifty Gateway) and make an online purchase instead of having to visit multiple art galleries in person to find the piece you want.

☞ Additionally, the opportunities for budding artists are wider here as anyone can publish their own artwork to sell online to a wide audience. On top of that, and unlike the traditional art market, there is the recurring income that an artist receives in the form of royalties every time their NFT is sold. This is an area that artists have never been able to see recognized before NFTs.

☞ The majority of NFT projects will also have corresponding social media platforms (e.g. Twitter or Discord) that spread the word about the project and its visions within Web3. From there, communities are made up of people who share these same views and aspirations. For example, many projects aim to raise awareness and support charities through their NFT projects and the profits made.

☞ Thus, NFTs are an innovative and inclusive method of buying and selling artwork that can also provide support to the wider community.

🤔 What do I get for owning an NFT ?

☞ When you buy an NFT on one of the many marketplaces, you are paying for a TOKEN which represents a unique item on the blockchain.

❓ You might be wondering why people pay millions of dollars for something you can just "right-click save" 🙄, but you essentially own a piece of digital art that is exclusive to you.

☞ I'm sure you've heard of the Mona Lisa, the original is valued at $800 million because it's the only one in the world painted by Leonardo da Vinci. Sure, you can buy a replica on Amazon for $10, but that's not the same as owning the original.

☞ While many NFT projects are purely for art, others come with additional rights and utilities.

However, it depends on the projects you choose, so it is important to do your own research (DYOR) before investing to see if this is the case and what additional utilities it comes with.

☞ For example, Bored Ape Yacht Club (BAYC) 🐵 is one of the most popular NFT projects. It is also the most expensive NFT When you own a BAYC, you get a membership to the "Yacht Club" which gives you access to:

🔥 Community Events - this includes access to giveaways and “holder-only” games within the discord where you can win NFTs and other cool items.

🔥 The Bathroom - this is another member perk where holders can paint one pixel every fifteen minutes on a virtual bathroom wallet. The bathroom offers nothing more than a community drawing board. However, just like the other club perks, it helps keep collectors interested in the project and its universe.

🔥 Commercial rights - this means that the holder can also use the BAYC he owns on any merchandise. For example, you can put your monkey on a t-shirt and sell it.

🔥 The Club - This is a BAYC holder-only club that includes many high-profile celebrities that you can interact and talk to.

🔥 Airdrops - the project will send NFTs to BAYC owners as a thank you for investing and believing in the team.

Many of the above examples are also included in the utility benefits of many projects in the market, and it is crucial to assess the value of “what you get” as part of a project’s cost of entry.