First emerging in 2014 NFTs have recently gained enormous popularity, with the market reaching a value of $41 billion in 2021. NFT stands for non-fungible-token in simple terms this just means each one is unique and is not necessarily the same value as another. This is the opposite of what we require in a cryptocurrency or any other currency for that matter. Because to make them usable units of exchange they need to be fungible. This applies to bitcoin, Ether, dollars, or an ounce of gold, all can be exchanged for an equivalent amount of the same currency, this makes them fungible. But each NFT has a unique serial number that identifies it from all others and its metadata can assign it to a digital or real-world asset that allows them to be traded on an NFT crypto platform like Singularifty.
What assets can NFTs represent?
The short answer is almost anything, current use cases include digital art, music, videos, in-game collectibles, avatars, game skins, videos of sports highlights, and even tweets. Yes, Jack Dorsey recently sold his first-ever tweet on Twitter for $2.9 million as an NFT. So as you can see there is also no limit to the value that can be traded on an NFT crypto platform. This shows that it is the uniqueness of each of these one-of-a-kind digital assets that give it its value just like with any other art or collectibles.
Can NFT be used to represent physical assets?
When most people think of NFTs they think of just digital art, but it is also possible to assign an NFT to a physical piece of art like an oil painting. Not only that, multiple NFTs could be assigned to a very valuable piece of art so that it can have more than one owner and each owner would be able to trade their NFTs on an exchange just like you would with shares in a company. This is called ‘tokenization’ This opens another whole new market that has never been possible before. Creating a multi-owner asset like this does not require any legal contracts and nothing needs to be recontacted when one owner sells their share, it is as simple as trading any other commodity on an exchange. It is also possible for an artist could tokenize and sell a part of a piece of art but keep control of it by holding some of the NFTs. And this is not limited to art, there is no reason why any real-world asset like property could not be tokenized in this way. So, for example, a property rental business could partly sell each property to many smaller investors using an NFT crypto platform. So, this is a way that a business like that could liquidate assets without the need to IPO on the stock market.
Why use an NFT crypto platform?
This represents a completely new business model for art and artists because up until now digital assets like images, audio, and video could be limitlessly copied and shared. But NFTs can create an original much like an original oil painting, it can still be copied and printed on posters, but someone gets to own the original work of art. In the world of NFTs, it is still possible for anyone to view, copy and download an NFT but there will only ever be one owner. This also means that artists can sell direct to their audiences via an NFT crypto platform, eliminating the need for art studios and record labels.
NFT micro-transactions
Although we have been talking about NFTs being used for extremely high-value items, that is not necessarily the only use case. Minting (or creating) a new NFT is generally a low-cost exercise, and it is quick and easy to do in large numbers. So, they can also be used for very low-cost items. Consider some designer clothing for an avatar in a game or to be used on social media. Games generally use an in-game currency to handle the sale of small items to players but using NFTs, gives the opportunity for large numbers of creators to sell their designs and virtual products or even advertising space inside or outside a virtual world using a universal currency like Eth.
Who would buy an NFT?
Much like real-world art and collectibles, there are generally collectors who want them for their own collection, and this could partly be for investment purposes. Then there are investors and traders who are interested in the financial aspect of the market. They can all trade on an NFT crypto platform like Singularifty.
How do you buy NFTs?
NFTs are bought and sold online generally using other cryptocurrencies. Most commonly you will need to buy Eth because most NFTs are created on the Ethereum blockchain. Although there are some NFTs on other blockchains like Solana (SOL) and Polkadot (DOT) most commonly they are on the Ethereum blockchain. The most convenient way now is to load your Eth into your Metamask wallet, which is like a browser extension, then they are available to pay when you are on an NFT crypto platform like Singularifty. Of course, you will need to sign up for a NextHash Singularifty account here. After signing up you will find there are clear instructions provided on the NextHash website on how to set up your Metamask account and of course, you can buy Ethereum on the Nexinter exchange or from your NextHash brokerage desk.
Make Singularifty your NFT crypto platform
Singularifty from NextHash is suitable for collectors, investors, and creators. It operates on the Ethereum blockchain which is currently to most popular NFT crypto platform. As with all NextHash services it is secure, fast, and reliable. If you already use NextHash exchange (Nexinter) and have had a brokerage account with NextHash, Singularifty will complement our other services for a full spectrum of crypto trading services. Even if you are new to NextHash, then you will find that Singularifty NFT crypto platform is ideal for a new trader or investor, or for seasoned professionals.