NFT stands for "Non-Fungible Tokens". These tokens are a type of digital certificate issued for digital assets. These tokens are produced on the basis of decentralized networks such as "Blockchain".
You have probably heard the name NFT a lot and read about the sale of some NFTs at huge prices, and now you want to know what the concept of NFT is; In fact, NFT tokens, so in this article we are going to define NFT. Then let's discuss other issues around it.
What is NFT?
NFT stands for "Non-Fungible Tokens". These tokens are a type of digital certificate issued for digital assets. These tokens are produced on the basis of decentralized networks such as "Blockchain". To better understand what NFT is, we can refer to a digital image and a painting:
Imagine that someone has created a beautiful image with the help of graphic software such as Photoshop or Illustrator and wants to sell it on the web. If someone buys and downloads this work, they can republish copies and give them to other people or even resell them.In the case of physical paintings that are created with ink, oil, pastel or any other technique, the original artist can only sell his work once, and after selling his work, he will not have any rights to it.
In both cases above, the rights of the people who created the artwork will be lost. Of course, this case is more abused and illegally republished in the case of a digital photo than a painting. But NFTs have solved these problems. So that by converting an image designed by someone or a painting drawn by an artist into an NFT token, the mentioned problems can be solved. In fact, by tokenizing the photo or painting, that work of art will have its own unique information and characteristics, which will be registered in the blockchain network. This information differentiates the original version from the copy versions, and it will be accessible and recognizable to all web users. Also, after selling an NFT, a portion of the profit will always go back to the original creator of the work!
What is the difference between NFT and digital currency?
We said that NFT means non-fungible token; It means that it has a unique nature and cannot be compared with other assets. But cryptocurrencies are examples of fungible assets that have the same value. For example, if you have 100 bitcoins, you cannot say that my so-and-so is more valuable than so-and-so; Because all bitcoins have the same value and if the price of bitcoin should go up or down, this will include all bitcoins. But not all NFTs have the same value, but each NFT token has a different price depending on its nature and the amount of demand for it!
What can be converted into NFT?
Now that we understand what NFT is, we need to know how many types these tokens are and what can be converted into NFT. In answer to this question, everything can be converted into NFT tokens. It actually converts digital assets like gifs, images, tweets, music, video, in-game items like avatars, weapons, and anything else into NFT. In the case of physical assets, land, real estate, paintings, or any physical and unique thing can be converted into NFT. In fact, the ownership information of these assets is recorded as NFT in the blockchain network, and no one can make a claim about it other than the original owner. have them
How is NFT made?
The creation of NFT has a process in the blockchain network called minting, which means "multiplying the NFT". NFT minting is done through certain platforms, the general steps of which can be described as follows:
After you have created your NFT, you need to go to one of the NFT creation platforms. (Rarible platform is recommended for beginners.)After visiting the relevant platform, you must now prove your work to be unique. If you have an image or a painting, you must have already filmed the process of creating it or in some other way, give your documents to the platform to prove that the work is yours and no one else owns it.After you have proven the uniqueness of your asset, you now need to click on the options to create NFT on the platform of your choice and go through the steps, the first step of which is to connect your digital wallet to the platform. (Because most NFTs are built on top of the Ethereum network, users usually use the MetaMask wallet for this connection.)It is better to have some ETH in your wallet account to pay NFT mining fees.Now you have to register the NFT name, type, price and other information according to the information that the platform asks you and then upload the main file related to it.
After going through the above steps, now if there is enough money to create NFT in your wallet, the stage of converting your work into NFT will begin and after this time, your NFT will be put up for sale on your chosen platform. Of course, NFT minting can be done for free on some platforms. In this case, the creator of the work will not pay any fees, but the final cost of creating NFT will be taken from the buyer!
What are the popular NFT markets?
NFT markets are a place to trade these tokens and through them you can create or mint NFTs. In the previous section, one of these platforms was mentioned, which is called "Rarible". Other NFT platforms and markets include the following:
- "OpenSea" NFT platform
- "SuperRare" NFT platform
- "Zora" NFT platform
The mentioned items are among the most prominent NFT markets in the world, which most users refer to to create NFT and buy and sell NFT.
How to buy NFT?
So far we have understood what NFT is and what steps should be taken to create it. But after managing the NFT, it should be possible to sell it or even buy other people's NFT and trade with it (such as trading real estate, goods or anything else). Usually, buying and selling of NFTs is done in the NFT markets that we mentioned in the aforementioned section and using cryptocurrencies. Even their pricing is in terms of digital currency. Therefore, you must have digital currency to buy NFTs. Ethereum digital currency is usually used for this purpose. So if you want to buy NFT, you need to buy some digital currency first. Iranian users must use Iranian platforms in order to be able to purchase digital currency from exchanges using rial deposits.
Among Iranian exchanges, Bitpin exchange has faster and easier registration and authentication procedures than other platforms. It also has high security and support, so right now you can get the cryptocurrencies you want to buy NFT from Bitpin.