NFTs, or non-fungible tokens, are digital assets that represent unique and scarce items such as art, music, videos, games, virtual reality and more. Unlike traditional digital files that can be copied and shared endlessly, NFTs are verified by blockchain technology, which ensures their authenticity, provenance and ownership.
But why are NFTs becoming popular? What is the technology behind them? What impact do they have on society? And what is the growing trend of NFTs?
Why are NFTs becoming popular?
NFTs are becoming popular because they offer new possibilities for creators and collectors in the digital world. For creators, NFTs enable them to monetize their work, protect their intellectual property rights, and reach a global audience. For collectors, NFTs provide them with a way to own and display rare and valuable digital items, as well as support their favorite artists and causes.
NFTs also appeal to people who value digital culture and expression, as they allow them to participate in the creation and consumption of innovative and diverse content. NFTs can represent anything from pixel art to generative art, from memes to music videos, from sports highlights to virtual land.
Moreover, NFTs are popular because they are part of a larger movement of decentralization and democratization of the internet, powered by blockchain technology. Blockchain is a system of distributed ledger that records transactions in a way that is transparent, secure and immutable. Blockchain enables users to have more control over their data, identity and assets, as well as to interact directly with each other without intermediaries.
What is the technology behind NFTs?
NFTs are based on a standard called ERC-721, which defines a set of rules for creating and transferring non-fungible tokens on the Ethereum blockchain. Ethereum is a platform that supports smart contracts, which are self-executing agreements that can encode complex logic and rules. Smart contracts enable NFTs to have various features and functionalities, such as metadata, royalties, access rights and more.
To create an NFT, a creator uploads their digital file to a platform that supports NFT minting, such as OpenSea, Rarible or Foundation. The platform then generates a unique token that corresponds to the file and stores it on the blockchain. The creator can then sell or auction their NFT on various marketplaces that connect buyers and sellers of NFTs.
To buy an NFT, a buyer needs to have a digital wallet that supports Ethereum and NFTs, such as MetaMask or Coinbase Wallet. The buyer also needs to have some Ether (ETH), which is the native cryptocurrency of Ethereum. The buyer can then browse different marketplaces and bid or offer on the NFT they want. Once the transaction is confirmed on the blockchain, the buyer becomes the owner of the NFT and can view it in their wallet or on platforms that display NFT collections.
Dil Bole Oberoi
