The NFT marketplace has grown so fast in recent years that it has left even the most experienced of investors worried and stunned. People are literally making millions of dollars for the simplest of pictures and artwork. Therefore, it is important for you as an investor to learn more about nonfungible tokens, and how they actually work.
Non fungible tokens are, as their name suggests, unique in their own way. They can’t be replaced by anything else. For example, cryptocurrency is fungible. You can trade one Ethereum for another Ethereum without any problem. However, this is not the case with NFTs.
Working of NFTs
Most of the non fungible tokens existing these days are a part of the Ethereum Blockchain. however, other Blockchains have developed their own NFTs as well. The ETH blockchain is the main market of NFTs, where all the data related to NFT ownership is stored.
As far as the actual content is concerned, it can be anything. There can be NFTs about artwork, games and many other things. However, the main reason behind the popularity of NFTs is because they are being used to represent art as well.
Can I Sell Anything?
Yes, you can associate anything valuable to a non fungible token, and sell it on the blockchain as long as there are people willing to buy it. For example, you can make your song into an NFT, and sell it on the blockchain. People have gone as far as selling their tweets. For example, the founder of Twitter sold one of their tweets for around $3 million. This is how much potential the NFT marketplace holds. By buying an NFT, you hold the ownership rights to a digital artwork. So, although people can infinitely copy the NFT, you’ll always be the real owner.