NFT, undeniably, drastically increases its popularity over time. In fact, NFT has been widely embraced across Southeast Asia. According to Yahoo Finance, Philippines has the most NFT owners over other countries (Dec. 11, 2021).
So, if you’re one of the curious peeps trying to know more about NFT, then this article will certainly help you find answers.
WHAT IS NFT?
Non-fungible token (NFT) is among one of the products of blockchain. Basically, it is a unit of data stored on a blockchain. Those unit of data cannot be changed but its owner have the full control whether to sell it for profits or to trade it for another NFT. Normally, NFT data unit can be in the form of either photo, video, or audio. But actually, there’s more to that.
TYPES OF NFTs
• NFT ART – Artists are given the chance to tokenize their artworks to generate crypto profits. Some are just plain artworks and some have use-cases. It totally depends on the creator. If someone buys a particular NFT art, he/she will now becomes the owner of such. Thus, there comes the transfer of ownership.
• NFT GAME – Players now have the opportunity to have fun playing games while earning cryptocurrency. NFT Games are blockchain games in which some, if not all, of its in-game assets are tied into a smart contract which gives them value. In this case, player will need to create their own tactics and make efforts to earn cryptocurrency.
• NFT MUSIC – Artists who are passionate about music can now tokenize their songs. It will give their fans access to their exclusive music. NFT Music helps artists to generate profits off of their music without having to go through record labels.
• NFT FASHION – One thing that comes to mind is that fashion links to the physical world. Well, time changed. You can now purchase a virtual NFT fashion which you can use to glamour up your online avatars and be as fashionable as you are in the real world. According to Alinda Gupta (Dec. 24, 2021), “NFT fashion provides a new revenue stream for designers. Some of the most well-known designers and brands that have ventured into the world of NFTs include Louis Vuitton, Yves Saint Laurent, Alexander Wang and Prada. In April 2021, Prada, together with Louis Vuitton and Cartier, announced the launch of Aura Blockchain Consortium, a global blockchain for all luxury brands and buyers. It is aimed at boosting transparency within the industry.” Guess I don’t have to say more about it 😅.
• NFT SPORTS – Avid fans can now support their sports idol through NFT. This contains sport-related digital assets which fans can avail to support their favorite team and eventually earn from it.
WHAT IS NFT MARKETPLACE?
“NFT marketplaces are your path to start investing in digital assets, collectibles, and art, but there are lots of options out there. Be sure to choose one that suits your buying and storage needs based on the type of NFT you’re after and the crypto you’re interested in using for transactions. Also be aware that this is a new industry and is highly speculative. Some NFTs may rocket higher in value, but there’s no guarantee. The value of digital art and collectibles works much the same as physical art and collectibles: Value is subjective and determined by factors such as uniqueness and the reputation of the artist who made it. Make a purchase — if any — with your overall investment strategy, net worth, and investment time horizon in mind.” – By The Ascent Staff (April 4, 2022).
In plain words, NFT Marketplace is where the seller of an NFT meets the prospective buyer who wants to purchase the said asset and must seal a mutual agreement.
NFTs are, indeed, one of the newest opportunity to earn crypto in line with your hobbies and likes. It provides another door for artists to generate profits off of the things they like to do most. A clear manifestation that we are gearing towards the world of cryptocurrency. However, as NFT being a product of blockchain – one must always keep in mind that NFT also carries risk. Cryptocurrency is a highly volatile asset, after all. The best advice to consider before jumping right off the bat is to always DO YOUR OWN RESEARCH.