“NFT” is becoming more popular by the day, and it can be really difficult for newbies and absolute beginners to get a hold of what the drama is about.
If you are one of these people, somebody from Breet has taken the time to curate a material for absolute beginners in the NFT space. I have titled it “NFT For Idiots”, but don’t take the title literally 😉.
If you are just wondering what the noise about the whole NFT topic is about and would love to have a rough idea of what is what, how is how, and why is why, then the material is for you.
CLICK HERE TO DOWNLOAD THE BEGINNER NFT EBOOK.
PS: This material is for newbies, and should not be construed as a substitute for any professional advice pertaining to this subject at any point in time.
BEGINNER INTRODUCTION TO NFTS
NFT stands for non-fungible tokens. And fungible is another weirdly big English that we have to break down. Easy said, something that is ‘fungible’ can be replaced. Something that is ‘non-fungible’ cannot be replaced.
Most NFTs are digital artworks, which means it’s created and can only be seen digitally. And each NFT is the only one of its kind. It cannot be copied or reproduced without the owner’s knowledge and approval.
NFTs use blockchain technology which is more like a digital record of all transactions connected to the NFT on a large system of computers.
WELL, HOW ABOUT I JUST TAKE A SCREENSHOT?
Ish! Stray bullet. This is a common misconception, and to be honest, I used to have the same idea. What if I just screenshot it?
An NFT in and of itself is not inherently valuable, a fancy 3D image of king kong is only as valuable as what it ties itself to, or the perks it enables.
Let’s do a quick comparison:
The ticket to a premier league football match is just a paper, but it’s the only way you can enter the stadium, that’s the value attached to it, and the only way the stadium bouncer can verify the ticket is by scanning a QR code, if it doesn’t work, they throw you out.
Now, you can just photocopy the match ticket, because it’s ‘fungible’. But I’m sure stadiums have a way around ensuring the ticket is only used once.
Relatively, the fancy image of king kong being sold as an NFT is just a picture, in itself, the main value is what it’s tied to, and the only way to unlock the value is if it can be verified, and guess where the verification happens? On the BLOCKCHAIN. This means it can only unlock its value if verifiable.
The screenshot on your phone has no value since it cannot be verified and will remain there alongside the bunch of Twitter meme screenshots you have in your photo gallery, worthless.
Another quick comparison:
Taking a picture of the Mona Lisa art at the Louvre does not mean you own it.
Sure, you can admire the art for what it is, but if the Mona Lisa art appreciates even more in value over time, you cannot sell that picture of it on your smartphone to an art dealer unless you want to be thrown into the ocean.
THE MARKET OF AND FOR NFT
People create NFTs for different reasons: Some are companies trying to build virtual utilities, some are startups trying to raise funds with the intention to give back to the NFT holders, some are charity organizations, some are artists trying to flex their digital prowess, some are doing it because they can, AND SOME ARE JUST THIEVES.
It’s important to understand the ideology of these thieves before you jump into the NFT space because they strive on the ignorance of idiots like us. Read further in the guide to understand better.
On the other hand, people buy NFTs for different reasons: Mostly with the hope that they’ll increase in value so they can make some profit. Some buy just because they love the art. Some buy because they are a fan of the artist. Some buy just to support charity. Some rich folks buy it just to flex and care not about the profit. And some buy just because everyone is buying.
Where buyers and sellers come together, is what we called NFT MARKETPLACE.
Notable marketplaces include:
- OpenSea
- Axie Marketplace
- NBA Top Shot Marketplace
- Rarible
- SuperRare
- Foundation
- Nifty Gateway
- Mintable
- Theta Drop
Looksrare is also gaining popularity because they attach rewards to NFT listings. The same way the Breet app gives customers reward points when they trade cryptocurrencies, exactly.
Top companies like BINANCE, CRYPTO.COM, and COINBASE have also developed their marketplaces, why not? It’s a great income channel since all they do is stand in between the buyers and sellers, take commissions, and care less about if some of the NFTs are actually worth listing, soft.
To learn more about NFTs, CLICK HERE TO DOWNLOAD THE BEGINNER EBOOK.
