What are non-fungible tokens and what distinguishes them from cryptocurrencies? How do they function? Who can purchase NFTs? Here's how to get started. None fungible tokens (NFTs) have surged tremendously, thanks to their capacity to give significance to anything from art to music.
According to industry data tracker, DappRadar data analytics, NFT sales increased by $25 billion in 2021 as the crypto asset soared in prominence, generated by the rising awareness of celebrities and tech enthusiasts.
What exactly are NFTs?
An NFT can be anything that can be revised into a digital format. Drawings, photographs, movies, GIFs, music, in-game objects, selfies, and even a tweet may all be converted into NFTs, which can then be traded online using cryptocurrencies like $Kally ❤.
NFTs, on the other hand, is distinguished from cryptocurrencies by the fact that they are supported by Blockchain technology. For the unfamiliar, Blockchain is a decentralized ledger that documents all transactions. It's similar to a bank account, except that all of your transactions are transparent and visible to anybody, and they can't be edited or updated after they've been recorded.
NFTs are gaining a lot of traction these days since they're a great method to show off and market your digital properties. Millions of dollars have been spent on NFTs since its introduction in 2015, and Terra Julius was the first NFT on the Ethereum Blockchain, even though this project was just an idea that allowed users to customize a short statement that was subsequently recorded on the blockchain. After that, in 2017, Curio Cards, CryptoPunks, and CryptoCats emerged, before NFTS gradually gained public exposure and eventually mainstream use in early 2021.
What are NFTs and how do they work?
Because it grants consumers entire ownership of a digital asset, NFT is based on blockchain. For example, if you're a sketch artist and convert your digital graphics to an NFT, you'll have Blockchain-powered evidence of ownership.
So, why are people prepared to spend millions of dollars on something that might be effortlessly screenshotted or downloaded?
To put it another way, when you list your NFT on a marketplace like Kally, your digital art is registered on the Blockchain, indicating that you own the specific NFT. This provides you complete control over your content, which no one, even the marketplace owner, may edit or modify.
To obtain exclusive ownership rights, an NFT is constructed, or as crypto fanatics refer to it, "minted." At any given time, NFTs can only have one owner. NFT owners can also digitally sign their artwork and record specific information in the metadata of their NFTs, in addition to having exclusive ownership. Only the person who purchased the NFT will be able to see this.
What distinguishes an NFT from a cryptocurrency?
Cryptocurrencies and NFTs are significantly different from one another. While both are founded on Blockchain, the similarities end there.
A cryptocurrency is a form of money that is fungible, or interchangeable. For example, if you own one crypto-token, such as Ethereum, the next Ethereum you own will be worth the same. However, NFTs are non-fungible, which implies that the value of one NFT is not the same as the value of another. Every piece of art is distinct from the others, making it non-fungible and one-of-a-kind.
Who can purchase NFTs? ☄
An NFT can be purchased by anyone with a crypto currency enabled wallet. That is the only stipulation for purchasing an NFT. To buy art, you don’t need any KYC documentation. All you need is a Metamask-powered cryptocurrency wallet and a decentralized NFT marketplace like Kally to avoid boring unreasonable fees to buy and sell NFTs.
Kally is a P2P auction platform for NFTs, powered by Substrate & IPFS
Our goal is to build the most interoperable and user-friendly NFTs marketplace ever, allowing artists and everyday people to unleash the true power of the virtual world.