If you have been browsing the internet, YouTube, and social media, you may be wondering what an NFT is. Now that NFTs are becoming popular all over again, there's now crypto news I open that I would not see the word "NFT." It looks like there is indeed an NFT craze. It is therefore pertinent to ask, What on earth is an NFT?
An NFT is a Non-Fungible Token, and it is a digital asset that can function as collectibles like a trading card. Many of us used to be trading cards when we were kids, trading cards like Pokemon, sports cards, and the sorts.
NFTs are built in the Ethereum network; Ethereum is a popular cryptocurrency as we know it. I think NFTs can be built on other networks, but Ethereum is the most popular one.
Unlike a cryptocurrency, no two NFTs are the same. They cannot be directly exchanged with one another, and they can not be divided into smaller denominations. For example, if you had a $10 bill, you could split that into five-dollar and one-dollar bills, but with an NFT, you can not divide it; it just stays as its own thing.
There is also digital coding behind NFTs, which makes them irrefutably verifiable, meaning that you can not make a duplicate or a fake the way you make a fake trading card and the sorts.
NFTs can be anything; they can be domain names, virtual gaming items, or even tweets. But the most popular NFTs we are currently seeing are digital art images, audio, and video.
Now you will be wondering why you have to pay so much money for just a digital piece of art. The truth about this is that you have to see it like The Scream by Edvard Munch.
You can get a picture of The Scream online, print it out, and hang it up on your wall, and you could say that he's, you have the painting on your house. That does not mean that you own the original; the same applies to NFT art.
If you are wondering why people pay so much money for this sort of stuff, it all comes down to the people that buy it; they are placing value on the item.
For example, with trading cards, we naturally place value on the rarest trading cards; it is the same with NFTs. NFTs are just the digital version of trading cards.
Many people are making a lot of money from NFTs, digital artists, and celebrities; Logan Paul is an example.
