If you are a person interested in the world of Blockchain technology, you must have heard a lot about the "NFT" term, sometimes constantly in the news of NFTs selling for millions of dollars! So what is NFT? Why is NFT so expensive? Can you make money from NFT? Let's find out in this article!
What is NFT?
NFT (Non-fungible token) is a type of digital asset that uses blockchain technology to create a unique chain of code that represents something and cannot be replaced. These strings of codes are often used to identify digital versions of works of art, songs, or in-game items. In the future, NFT is expected to be widely applied in all areas of life, encrypting all assets and intellectual property rights,...
Origin of NFT
The idea of using blockchain to confirm ownership of properties, collectibles,... First appeared in 2012 called Colored Coin created by Yoni Assia. But unfortunately failed because Bitcoin does not support this type.
2 years after, in 2014, a peer-to-peer transaction technology based on Bitcoin blockchain technology called Counterparty was born. This technology allows users to create their own currency or transactional value.
Finally, NFT is more complete thanks to the new ERC-721 standard of the Ethereum virtual currency. This standard allows users to trade their assets on the Ethereum blockchain platform. Currently, Ethereum is the leader in transactions and assets stored on the blockchain.
Outstanding Features of NFT
Indivisible: NFTs are special in that they are not divisible, unlike cryptocurrencies you can divide them and transact as fractions.
Can not be copied or destroyed: Each NFT is unique, all data is stored on the blockchain platform through smart contracts and does not depend on any company.
Verifiable: Anyone can query back who is the owner of the work, without the need for a third party. That is thanks to the storage of data on the blockchain platform.
Why is NFT valuable and expensive?
Due to its unique and verifiable nature, Each NFT has a tremendous collectible value. Owning an NFT means that you are in possession of the actual ownership of the item whether a physical or a digital asset. And NFT can also act like any other speculative asset, you buy it and have the right to sell it for a profit when the value goes up.
Ways to make money from NFT
Here are some methods by that you can actually make money with NFT.
- You can compose your own art, mint your art to NFT and sell it on the NFT marketplace for crypto.
- You can research potential NFTs and find the opportunity to buy them when they are released to the market. Then you can hold the NFT until the price of NFT increases high enough to be profitable for you.
- You can invest in the game NFT and play to earn. During the process of gaming, you will earn the reward coin issued from the game. Those coins are so valuable that you could swap them for popular coins such as USDT, ETH, and BTC on DEX/CEX Exchange, or sell them directly for fiat.
If you have never owned an NFT and made money from it, it is time for you to research and try now!