Now to the latest trend that’s sweeping the internet. – So-called NFT in Singapore. They’re now selling for huge bucks. 69 million dollars. So what’s behind this latest craze? That is the question to ask. Just last month a single jpeg sold for 69 million dollars. The NBA is selling little moments of basketball games for hundreds of thousands of dollars. There is all sorts of digital things that people are purchasing a version of them for lots of money.
What are NFTs?
Non-Fungible Tokens (NFTs) are unique, digital items with blockchain-managed ownership. Examples of NFTs include digital art, collectables, virtual reality items, crypto domain names, ownership records for physical assets, and more.
Don’t get overwhelmed by the idea of fungibility, it’s just the ability of a good or asset to be interchanged with other individual goods or assets of the same type. A simple comparison of fungible, semi-fungible, and non-fungible assets is pictured below.
Let’s talk about the word fungible. It’s this very specific word that economists use, it has a very precise definition. We can use a different word for fungible for a second. Let’s just use the word replaceable. Non-fungible means non-replaceable, you can’t replace it, there’s only one of them, it’s unique. Non-fungible.
Everything in our economy is one or the other, fungible or non-fungible. A sack of rice is fungible, you just want a sack of rice, you don’t care which one it is. The Mona Lisa, non-fungible, there’s only one. Unsurprisingly, non-fungible things are way more valuable than fungible things. To that’s the NF in NFT in Singapore, non-fungible.
The Concept of Non-Fungible Tokens (NFTs): Why Use It?
To some people, NFTs are pretty Alien. NFTs are a new form of digital assets designed to be unique and have an inherent value. They have a wide range of applications in the world of gaming, where they can be used to buy and sell collectables.
NFTs are less prone to the same problems that plague cryptocurrencies such as inflation, forgery, and counterfeiting. They also allow for more complex data structures not possible with non-digital assets.
The concept is evolving quickly, but NFTs might produce the most interesting results in how we think about ownership in a digital world.
NFTs in the Blockchain Space and Why it’s Important for Us to Understand Them Better
NFTs are a new kind of digital asset that is becoming popular in the blockchain space. They are important for us to understand because they can be used as a form of payment, can incentivise people to participate in communities and help create a sense of ownership.
NFTs have been around since 2013 but they have only recently started gaining traction among blockchain developers. The first NFT was called CryptoKitties and the popularity of these digital assets has grown exponentially over the years. NFTs now have many use cases such as being used as a form of payment or an incentive for people to participate in communities.
3 Ways in which NFTs are Compelling and Revolutionary Tools for Content Creators & Marketers
NFTs are revolutionary tools that have the potential to change the way content is created and marketed.
1) They are a cost-effective, more sustainable alternative to traditional advertising.
2) NFTs encourage people to make their own stories, rather than consuming what’s fed to them by the media.
3) The tokens can be used for incentives, which make them super engaging for consumers of any age.
Complete guide to buying an NFT on OpenSea
OpenSea is the first (and largest) peer-to-peer marketplace for crypto goods (such as eBay for crypto goods), which includes collectables, game items, and other virtual goods secured by a blockchain. On OpenSea, anyone can buy or sell these items through an intelligent contract.
To use this company, you must Install MetaMask on your computer before you open an account. The account requires the necessary information about you and an email. Before you begin, you need to add money to a digital wallet that you can spend from.
OpenSea uses ether, a cryptocurrency, which you’ll need to buy. Think of it as an arcade. You walk in and you want to play some games. But before you play the games, you need to buy some tokens. Same idea here, but the tokens are called ether, and instead of buying lots of tokens, you’re probably going to start small, with fractions of ether.
OK, so back to that digital wallet. OpenSea suggests using a plug-in for the Chrome browser called MetaMask but supports lots of other digital wallets.
It took me about 30 seconds to install the plug-in from OpenSea and set a password. Let’s do that now.
- Tap the profile icon on the top right of the OpenSea website.
- Click “Get MetaMask.”
- Choose “Install MetaMask” for Chrome, or the supported browser of your choice. This installs a Chrome plug-in.
- Choose “Get Started.”
- Select “Create Wallet.”
- Choose “No thanks” for sharing feedback.
- Create your password.
- Write down the secret phrase it gives you. This is super important and is your backup to access your account. Don’t lose it.
- Tap “Next” and confirm the secret phrase.
- Click “Next” to connect your OpenSea account with the MetaMask digital wallet you’ve just created.
- Click “Connect” again.
- Ok, now you have a digital wallet that’s connected to OpenSea. Now you need to buy some ether you can spend on NFTs.
On the platform, you can browse or search for NFTs. You can also participate in an auction or even create your auction for items. While average sales have a fixed price, auctions usually sell rare or unsold items, which therefore have a higher rate.
The price of the items varies greatly depending on the type of thing which made it, whether there are discounts, etc. The same account will be able to buy or sell the digital assets, which means that you can sell them again once you have acquired the rights to their ownership.
Examples of assets you can buy on OpenSea
There are many different things you can buy on Opensea, from Art to unstoppable domains. I am also selling my art NFT here with the collection called Winner Coin.
NFTs have exciting new properties: they’re unique, provably scarce, tradeable, and usable across multiple applications. Just like physical goods, you can do whatever you want with them! You could create many of them, gift them to a friend across the world, or go sell them on an open marketplace. But unlike physical goods, they’re armed with all the programmability of digital assets.
People can buy or sell NFTs on the platform, with OpenSea making their money through a 2.5% fee on the sale price, which they regard as one of the lowest in the industry without any buyers fees. OpenSea was founded in 2018 by Alex Atallah and Devin Finzer, who took inspiration from CryptoKitties’ success on the market. The pair spent time on Discord servers, chatting to users and launched the beta version of OpenSea in December 2017 with the duo believing they ‘could create an Amazon or eBay for all of these new NFTs.
OpenSea now supports multiple blockchains, such as Polygon and Ethereum, and will announce support for Flow and Tezos in the near future, having previously been restricted to Ethereum which used a lot of computing power and wasted energy.
Polygon stops insanely high transaction fees related to computer usage in a bid to make the marketplace more accessible. The mission behind the platform stems from new economies that may arise from cryptocurrencies. Part of that allows for a minimal trust operation as the buyers and sellers don’t have to trust that the other party will behave themselves. That’s because the transactions rely on technology and smart contracts, not reputation or third parties.
Their atomic transaction system means that either the whole deal happens, or it doesn’t. Unlike with eBay, where the buyer has to pay the seller before they ship the goods, if the deal goes sour for any reason it’s like it never happened and neither person is left in the mud.
To accomplish this, OpenSea uses the Wyvern Protocol, a suite of smart contracts that are audited and tested in the real world. It allows users to swap state changes like NFT Ownership State for Crypto ownership state, allowing the seller to transfer the NFT to the buyer instantly.
The CEO, Devin Finzer believes that we’re experiencing one of the biggest fundamental changes in the internet economy and he’s proud to be leading it for a while. OpenSea is selling hundreds of millions of $ per month on their marketplace and big social media names like Gary See and Logan Paul are continuing to push the NFT message, only attracting more support to the marketplace.
Not only that but the increased demand and attention drive up the prices of Ether and Solana. What do you think of OpenSea? What do you think of NFTs? Do you own any NFT?