What is NFT?
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NFT stands for Non-fungible token, which is a unit of data on a blockchain digital ledger. In a word, it is a type of digital asset present on a digital chain (blockchain). This blockchain acts as a ledger that ensures the authenticity of both the assets and the owners.
Most of the content, digital objects in the past are infinitely reproducible. But with NFT it is different, each asset will have a unique digital signature and therefore it is unique. Each minted NFT token has a unique unique identifier and belongs to a unique owner. As a digital asset, NFTs are also often traded in cryptocurrencies, but sometimes also using USD.
Application of NFT in real life
NFT has been and is being applied most commonly in digital content such as music, pictures or other art content. For example, when an artist sells a painting as NFT, the buyer will have to pay and become the owner of it. Others can still see the painting, but only the buyer has official ownership.
NFT has limitless potential as it can exist in all types of digital objects: images, videos, audio, text or even a Twitter post. NFTs can also be pieces of land in virtual world environments, digital clothing or exclusive rights to use cryptocurrency wallets.
So what are the benefits that NFT brings? The tokenization of assets can bring significant benefits to both sellers and buyers. Because NFT assets can verify authenticity and clear ownership, transactions are also transparent, especially with works of art where authenticity is very important in determining value. Sellers themselves can also protect their intellectual property rights and enjoy the fruits of their labor more fairly.
Or like in the game world, if you buy items and characters in the form of NFT, then you are the 100% exclusive owner of it, no one can trespass. Not even the game publisher can delete your character or item.
Dangers of NFT: don't abuse it if you don't understand it
NFT started trading in 2017. After 4 years, it only really exploded and gained world attention in 2021. According to market tracking company DappRadar, NFT sales are now in the third quarter of 2021. has grown to $10.7 billion. Some experts believe that the explosion of NFT in a short time is because during the Covid-19 epidemic, everywhere is locked down, people have more time at home and live online. The popularity of products similar to cryptocurrencies is also a factor.
In the digital age and increasingly developing technology, digital products like NFT are definitely an inevitable occurrence. But similar to cryptocurrencies, new products like these will be faced with questions and doubts as to whether they will really have lasting value or just a fading trend? The actual answer, of course, only time is the most accurate answer.
Many people now see NFT as the future of property ownership and it will expand much more. In the future, it is possible that everything from houses to movie tickets could be tokenized and owned as NFT assets. Currently, many people buy NFT to invest in the future like Bitcoin, or buy to show their personal taste.
But if you want to invest, buy NFT, you need to learn carefully and have full knowledge about it. Currently, virtual currencies and virtual assets cannot be fully controlled. In addition, the bigger the market, the more scams will be rampant.
How much does NFT cost?
NFTs can cost as little as a few dollars to tens of millions of dollars, depending on the specific asset. For example, works of art are of course highly valuable. For example, Beeple's Everydays: the First 5000 Days painting was sold as NFT for nearly $70 million. Or the world's first Twitter post from this social network owner was encrypted and sold for $ 2.9 million. As for more popular products such as music albums, they cost several tens of dollars.
To know the price of each NFT coin, you need to track the price list over a specific time.
