All You Need To Know About NFTs

The NFT industry is booming right now, with over $10.7 billion dollars generated in Q3 2021. As this fairly new industry moves into the mainstream, with big names such as Kate Moss, Ellen Degeneres, and Jack Dorsey selling their NFTs for tens of thousands of dollars for charity, many people still don’t quite get it. Why is a JPEG of a pair of squiggles worth $4 million dollars? Why are people going bananas for Mad Bananas? What even is an NFT? Here’s everything you need to know about NFTs, and what the future may hold for this industry.

NFTs are Non-Fungible Tokens. Non-fungible means that the token is unique and can’t be replicated, aka it’s “one of a kind.” A good way to think about this is an artist's prints versus the original. Many people can own replicas or photographs of a painting, but that’s not the same as owning the original. NFTs are the same way. When you buy an NFT, you receive a unique digital code that serves as a digital certificate of authenticity and ownership that resides on the blockchain. 

The art industry has really taken to NFTs and run with them, creating entire communities around NFTs. The Bored Ape Yacht Club, Gutter Gangs, and Pudgy Penguins all have thriving communities that fuel the projects. These NFTs also unlock discord channels, air drops, exclusive access to associated merchandise, and more. There are also really cool things happening with music NFTs. OneOf is an NFT platform that offers music NFTs from household names like Whitney Houston and Quincy Jones. Their NFTs also unlock many cool perks for holders, like exclusive interviews, private concerts, and more. 

While NFTs are dominating the creative space right now, future applications are more pragmatic. In the future, the deed to our homes could be an NFT on the blockchain. Vendors could tokenize their invoices for easier, more transparent tracking and record-keeping. Eventually, we may see our medical records or passports as NFTs on a blockchain.

There are a variety of options for purchasing NFT’s that typically require Ethereum for payment. Marketplaces like OpenSea, NiftyGateway, and OneOf are excellent sources for finding and purchasing NFTs . As always, do your own research and find a project you see value in and get involved with the massively expanding NFT community!