NFT and Blockchain: What do I Need to Know?
The NFT fever of the celebrity world has caught everyone’s eye in this new market. The digitization process is accelerating. One confirmation of this is Metaverse itself, where you can live a “new life” in this universe and earn your NFT there.
The concept of the blockchain (or data chain) originated in 2008 and basically represents a way to verify a transaction or record. Designed to make digital transactions more secure, blockchain is an innovation behind digital currency (Bitcoin, Litecoin, or Ethereum.)
And how does blockchain work?
We will help you decode all this data to understand this new universe! Is it us ?
Blockchain information is stored in data blocks, each block having a type of digital signature called a “hash”. This signature works like our biometric printing, ensuring the security of your information in encryption. As a result, data blocks cannot be easily violated. When a new block is created, in addition to having a “hash” it also carries the signature of the previous block. Thus, a sequence that secures the transfer and makes hackers’ lives difficult. The data of all transactions is recorded under the name “Ledger” of the leader. This ledger contains all the information about the transaction, even how much you have transacted in the car, just a code with letters and numbers. Great…
Now that we know the blockchain concept, let’s enter the fertile ground of NFT. NFT is an acronym for “Non-fungible Token” which will be something like “Non-fungible Token” in free translation.
A token, in the cryptocurrency world, is a digital representation of an asset (such as money, property, or artwork) registered in a blockchain. For example: If a person owns a property token, it means that he owns that property — or part of it.
According to the Country Civil Code, a fungicide is a “product that can be replaced by others of the same type, quality and quantity”. Example: A $ 200 bill fungus, because it can be exchanged for two $ 100 bills. Painter Pablo Picasso’s “Guernica” on the other hand is not a fungus because it is unique and cannot be exchanged with others.
That’s the concept behind NFTs: they’re like a type of digital signature that turns any kind of digital media (a GIF or JPEG, photos, videos, messages, website domains, audio files, etc.) -fungible.
The operation of NFTs technology is like a blockchain. Given the decentralized nature of blockchain, there is a huge security gap between storing stored data and virtually being mood-proof. This encourages the emergence of a market around the NFT, as it already exists for cryptocurrencies.
NFT is gaining ground in digital artwork. If the author of the work feels the need to define his authorship, he may associate it with an NFT as a way to preserve its originality in anticipation of commercialization.
How do they work?
It is possible that this concept is not yet clear, as it is somewhat complicated. Thus, to better understand its effectiveness, it can be explained by a very simple example.
An artist, like a painter, creates an NFT image, meaning a digital image for the value he considers. And people will buy if they are interested.
The following questions may arise: Why pay for a photo that can be downloaded for free from the Internet? The main part of this issue. If that instance is downloaded, it is true that the person has the same image, but it is not real. You will have a copy.
Like a replica of Pablo Picasso on the wall of your house. Do you have an original painting? No. You have a copy of that artwork.
This is why NFTs are designed to offer something that cannot be copied. While this is a sale, it is also a way to try to make money. This is possible because the artist can determine the royalty to get a percentage of sales each time their art is acquired by a new owner.
11 billion in transactions in 2021
The Market Transactions Survey shows that in the first quarter of 2021 alone, NFTs were responsible for the transfer of US$50 508.9 million to the crypto market. This number increased to $4754.3 million in the second half of 2021, an increase of 48.2% in the first half. These digital assets transferred $10. 10.7 billion between August and September.
The most expensive NFT in history is actually a series of NFTs. Famous digital artist Pak, whose work has transferred more than $ 350 million, has created The Merge as a multi-owner token. Only 28 + 983 people (this number has increased since the newsroom closed) bought more than 312,000 shares for a total value of more than 90 million US dollars. Together they created Pak, the so-called “mass”, surpassing Jeff Coon’s 1986 rabbit painting, the most valuable living artist in history, which sold for $ 91 million.
NFT, Metaverse and the Future of the Internet
The term Metaverse was coined by the American author Neil Stephenson, who used the term to describe a virtual world in his 1992 book, Blizzard. It became popular when Facebook changed its name to create this hint of Metaverse on the meta platform, we can also buy Marvel Studio films that want to explore this theme as well.
Metaverse is slowly gaining more and more space. We see Fortnite, one of the most popular games with over 350 million active users worldwide, where they engage in battle with 100 players through avatars and real-time communication. This has sparked interest from a number of companies selling NFT clothing and footwear for these avatars, such as Nike recently acquired RTFKT, a company that makes virtual sneakers, to acquire it at Metaverse.
Metaverse is still under the structure. Immersion in this world depends on the ability of companies to create compelling digital simulations. One of the important points is the expansion of the devices, which must be accessible and comfortable. Facebook itself, for example, acquired the Oculus brand, now needs to rename the device.
Canadian consultancy Emergen Research predicts that the meta-related market will grow at an annual rate of 43.3% between 2021 and 2028, reaching US$ 828.95 billion at the end of the period.
And don’t think that it’s just the “big tech” that is creating this market. Like Nike, another clothing brand that was very successful was Dolce & Gabbana. In September 2021, it auctioned off a high-fashion collection Collezione Genesi, for the equivalent of US$ 5.7 million. It is hoped that NFTs will become a preferred way to trade in Metaverse.
How to buy NFTs?
The purchasing process is very simple. The first step is to create an account on a platform, have funds in cryptocurrency, or a wallet called Crypto World, and acquire NFT. Each marketplace has different features of asset acquisition. So study the platform well before landing on this earth. Here are some platforms for you to know:
● OpenSea is an Ethereum network-based marketplace.
● Binance is the world’s largest exchange by market cap and has a marketplace called Binance NFT.
● Mintable is a network fee-free NFT marketplace.
● KnownOrigin is a popular marketplace for NFTs and digital arts.
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Originally published at https://blockchain101.famecoin.ai.