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Today world is busy with creating wealth. Each individual is searching for a way to make money. Now, investing in the share market is the best way to get a return.
But the world is changing rapidly. At present technology will not serve the majority in the next 2 to 3 years. This scenario applies in every field.
So, in the future NFT, cryptocurrency, and Metaverse will be dominating the entire world. These are the essential entity to get richer in the future.
Now, NFT Non-Fungible Token is a hot topic to discuss. So in this blog, one can get answers to the
- What is NFT?
- How are NFT and blockchain-related?
- How to create an account in the NFT marketplace?
Ultimately one can get a basic understanding of the Non-Fungible Token.
Non-Fungible Tokens
It is the simplest way to sell or buy digital products online through blockchain technology.
Here Fungible meaning is Replaceable. So, nonfungible means irreplaceable. Always people will urge to buy things unique and masterpiece.
For example, if one buys a white color T-shirt from the store. Then it is a replaceable product. Because anyone can buy the same white color T-shirt from the store. So, there is no high demand and also there is not such a unique specialty over there.
In the same way, if you had made some beautiful design in the same white color T-shirt. Or if got the autograph from any famous tycoons then it is special. So, now the white color t-shirt that you own is unique and special.
No other person in the world has the same white color shirt with the unique design or autograph from famous tycoons. In this way, you have made the white color T-shirt unique and outstanding.
So, this product has a special feature where another person cannot possess. Then it is a Non Fungible product.
Ultimately, you can sell this white color t-shire digitally through the NFT marketplace.
Then this would be your next question
- How can I sell this product?
Here comes the next word Token. Now, a Token is a separate or unique entity an individual owns for a specific digital product.
Here, Token plays a special role and also verifies the ownership of the products. So, it is like a legal certificate that assures that the product belongs to a specific individual.
BlockChain and Non Fungible Token
Non Fungible products are on sale in the NFT marketplace. So, the entire payment is not done in rupees or dollars or any other currencies.
Instead, the payments are done through cryptocurrency with the use of blockchain technology.
As cryptocurrency is a decentralized currency and no one can control or monitor regulating the crypto. In the normal scenario, a money transfer from Bank A to Bank B is done. Then the entire transaction history is recorded in the respective banks.
So, here the transaction is private and no other party can get the details easily. Even the money value can be controlled by the governing bodies at any time. Ultimately, one does not have any control over the money.
Hence, to eliminate or avoid all the barriers cryptocurrency is introduced. Cryptocurrency is a digital and decentralized currency where no one can regulate its value of it. Now the most popular cryptocurrencies are
- BitCoin
- Ethereum
- Dogecoin
Cryptocurrency transactions are done by blockchain technology. The specialty of blockchain technology is it records the transaction in a series manner and also it acts as a public ledger.
Here all the transactions are recorded publically. In-depth, the transaction can be tracked by all the computers in the world. So, one can view the transaction history of person A.
But here, the identity of the person is not revealed. Because one can know the only id of the person not his original name. Therefore, cryptocurrency is revolutionizing the world with its unique feature.
So, NFT accepts only Cryptocurrency payments.
Also Read: What is Mutual funds
Non Fungible Tokens with Ethereum Blockchain
Presently, Non-fungible Tokens can be made with the Ethereum blockchain technology.
For transactions bank account number or UPI ID is mandatory. In the same way, NFT requires Ethereum Blockchain. This will create a digital wallet with the id.
How to create NFT to sell or buy the product
One can easily create NFT to sell or buy the products freely. Initially, one should have to do two steps to create NFT
Digital Wallet
Ultimately, the transaction is done via cryptocurrency with the use of blockchain technology. To receive or transfer the money one should have a digital wallet.
From this digital wallet, all the transactions are done seamlessly. Here are some of the popular digital wallet creator companies
- Metamask
- Coinbase Wallet
- WalletConnect
- Fortmatic
After creating the digital wallet, then the next step is to set up an account in the NFT marketplace.
NFT ( Non Fungible Token) Marketplace
Here marketplace means different categories of digital products. For example, KFC is famous for its varieties of chicken, Bigbasket is known for groceries.
Likewise, some market place is famous for digital art, music, videos, games, and many more.
Marketplace lets you display your digital products and can sell at the price according to your wish. Then the users can buy the product.
Here are some of the best NFT marketplace
- OpenSea
- Rarible
- Mitable
- Axie
One has to consider seriously before selecting the marketplace. Because each marketplace has its own policies.
Non Fungible tokens are getting popular at a steady pace. So, it is the best time to get into it and make some money. If one buys the digital products for x amount.
Then he can sell the same product to others as well. However, there the real creator gets some part of the money over the transaction as a commission.
If are good at arts, music, video making, photography, gaming then it’s a good time to make huge money. In a recent incident, Jack Dorsey’s (Twitter founder) first tweet has sold at 18 crores or $2.9 million.
Finally, Non Fungible Token is a complete gamechanger.