NFTs 6 Frequently Asked Questions
It all started in 2007, when Winkelmann decided to publish a digital picture online every single day. Little did he know that 5000 days later, he would compile them together into one big image, and become a millionaire.
NFT stands for Non-Fungible Token. Non-fungible means unique, that can’t be replaced
An NFT can be any kind of digital or conceptual content – images, videos, pixels, music, and even experiences or abstract ideas – that exclusively belongs to its owner and potential buyer. So theoretically, if it’s something that exists online, you can acquire it as an NFT.
2. What are the pros and cons of NFTs ?Pros:
Cons:
The vast majority of NFTs utilize the Ethereum blockchain. So if you have cryptocurrency, you can buy NFTs. Easy! You can purchase them at NFT-specific marketplaces. Platforms such as OpenSea, Rarible and Foundation are currently booming with artists and brands selling their digital artworks and products for mind-blowing amounts of money.
As you may know by now, NFT’s primary market is when a random person buys an NFT from an artist on an NFT marketplace. The secondary market is when the buyer of an artwork resells it. And that’s where the real money is being made, because the resale price is usually higher than the base price set by the artist. Don’t worry, the artist gets a percentage every time the NFT is resold.
We’ll leave it to the professionals so here’s a video that explains how to create NFT art from scratch: https://www.youtube.com/watch?v=O7l_Z3IeGCg
The raison d’être of blockchain technology is to avoid “double-spending”. Which means that a bitcoin holder cannot spend the same bitcoin more than once. Buying and selling NFTs uses the same principle. The artist cannot sell the same NFT to multiple buyers, but the tricky part is that there are no guarantees that they haven’t created different NFTs of the same artwork.
Since NFTs are still new, rules and regulations are just being set recently. For example, you can sue an artist for selling the same artwork to several buyers on different blockchains.