They are called digital reflections of collectibles in the physical world. Unlike dollars, stocks, cryptocurrencies, or gold, which are mutable assets, ‘non-fungible’ NFT assets are each unique and special. The crypto money in your wallet is the same value as the crypto money in someone else’s wallet. Non-Fungible Tokens (NFTs) are digital reflections of collectibles in the physical world.
What does NFT do?
Just as cryptocurrencies have a monetary equivalent, NFTs also have some counterparts created in the digital environment. These can be invaluable works of art, photography, literary writing, and more. The value of NFT comes from its uniqueness. So when you buy an NFT, you have a digital asset that no one else has. You can think of owning an NFT as getting yourself an original code in the digital environment.
How can you produce NFT?
NFT generation is produced in ERC-727C token standards prepared by Ethereum blockchain developers. It’s important to make it easy for NFT producers because the technical side of blockchain is really complex. There are many platforms to manufacture and sell NFT. In this way, what manufacturers need in this process is a digital cryptocurrency wallet.
High Value NFT Examples
Alien2089, a character belonging to the CryptoPunk game, one of the first produced NFTs, was sold in January 2021 for 605 Ethereum (6.455.000 TRY with the price dated 27.02.2021).
The value of the “Dragon” character in the game CryptoKitty is 600 Ethereum (6.350.000 TRY with the price dated 27.02.2021).
The “1–1–1” race car in the F1 Delta Time game was sold in May 2019 for 415.9 Ethereum (4.440.000 TRY at the current price of 27.02.2021).
The highest-value NFT sale to date has achieved “Everydays: The First 5,000 Days”, which crypto artist Beeple has auctioned at Christie’s. The artifact was the first NFT to be sold in a historic auction house and marked a new institutional legitimacy for the emerging market. The digital artwork in jpg format, a compilation of Beeple’s 5,000 pieces, was sold for $69.4 million (approximately 550 million Turkish lira) after the auction started on February 25.
In Brief, What is NFT?
NFT, which stands for ‘non-exchangeable coin/chip’, can be termed as a ‘digital property right’ of any product. Any sculpture, shoe, or book can have an NFT equivalent.
NFT, like other cryptocurrencies, can be verified with blockchain technology and traded with cryptocurrencies. You can sell your product by converting it to NFT through a marketplace. The buyer gets the original 40-character digital code of the real product.
This code also replaces the product’s digital certificate. NFTs cannot be exchanged with each other because the code given to each product represents only that product. For this reason, they are considered ‘collection objects’ and cannot be reproduced.
Mete Ali Başkaya
