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NFTs Explained 101: Everything You Need To Know About

What are NFTs?

A non-fungible token (NFT) is a distinctive digital asset representing real-world items like music, art, collectibles, GIFs, or videos. NFT is a one-of-a-kind, non-transferable unit of data with a unique proof of ownership. It is stored on a digital ledger utilizing blockchain technology.

You can create an NFT out of anything that is distinctive and holds a considerable value. In essence, NFTs are just like any other tangible collector’s item. The difference is you don’t get an oil painting on a canvas or an antique piece with an appealing history to showcase at your home; instead, you get a JPG file with the authenticity of your ownership.

nfts explained

A brief history of NFTs?

The notion of NFTs has been with us since the launch of Colored Coins on Bitcoin’s blockchain in December 2012. This project arose from the concept of having real-world assets on blockchain technology. But the limitations of Bitcoin’s programming language at that time proved insufficient to keep the application running.

Counterparty, an open-source online protocol, was established a few years later, in 2014. It was also built on the Bitcoin blockchain with numerous projects and assets, including a card game and meme trading.

In October 2017, CryptoPunks started the world’s first marketplace for rare digital art on the Ethereum blockchain. The project’s creators launched 10,000 distinct cartoon characters that anyone with an Ethereum wallet could freely claim. All were immediately claimed, creating a thriving secondary market in which collectors traded them for ever-increasing prices.

How do NFTs work?

NFTs were initially introduced on the Ethereum blockchain, but currently, they are also supported on other blockchains like FLOW and Bitcoin Cash.

Whether the actual file is an MP3, GIF, JPG, or something else, the NFT that successfully establishes its ownership can be purchased and sold just like any other piece of art.

The blockchain ledger is used to verify an NFT’s unique identification and ownership, and the price is primarily determined by market demand.

how nfts work

How are NFTs different from cryptocurrency?

Cryptocurrencies and physical money are both “fungible,” meaning they can be traded or exchanged for one another. NFTs don’t work like that. Each NFT contains a digital signature that prevents them from being exchanged or compared, making them non-fungible.

How to buy NFTs?

Depending on the currencies your NFT provider accepts, you need to acquire some cryptocurrency, such as Ether.

You can buy cryptocurrency with a credit card on Kraken, eToro, and Coinbase. Most marketplaces use an auction system; therefore, you’ll need to enter a bid for the NFT you wish to buy.

Popular NFT marketplaces:

future of nfts

The future of Non-Fungible Tokens:

At the moment, most NFTs are used to sell digital art and collectibles. However, NFTs can play a pivotal role in the tokenization of any real-world asset in the future, making asset ownership explicit and incorruptible.

Non-fungible tokens can also become highly valuable for real estate deeds, car titles, and corporate ownership.

Overhorizon Media is here to help you with NFTs:

Whether it’s brands, celebrities, singers, artists, or sports teams, NFTs are taking everyone by storm. But, despite the dramatic headlines and even greater price tags, NFTs that give actual value to fans and consumers are here to stay.

At Overhorizon Media, we are eager to plan NFT campaigns for our present and prospective clients. Our goal is to establish and improve a brand’s overall online presence and marketing strategies. And we achieve that by crafting tailored solutions according to the needs and demands of a business.

New NFT project!

We got the chance to work on the exclusive NFT project called Sad Rhinos. Sad rhinos are 3D designs of limited amount (only 4444 NFTS) and the aim of the project is to help rhinos in the wild! 

The project is built on Cardano blockchain, also known as CNFT and is considered one of the most sustainable blockchains out there. 

Check out the SadRhinos website to find out more. 

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