Non-Fungible Tokens: A Deep Dive Into the World of Digital Collectibles

NFT markets are buzzing full of all types of digital assets, from music to art and random cardboard signs to memes.

Over the past few months, NFTs (or non-fungible tokens) have been dominating the digital space. This is a combination of many things that excite a generation that has had digital technology all its life.

 It includes cryptocurrency, virtual reality, as well as a healthy dose of social media frenzy. Many entrepreneurs and big names have used NFTs to generate hundreds of millions in online transactions. These transactions are also recorded on blockchain technology. Why is it that so much money is being spent on things which exist only virtually? Let's break it down.

What's an NFT?

An NFT can be described as a digital asset or a unit that is stored in a digital ledger known as a blockchain. NFTs can be described as digital versions of real-world assets such as a painting or game, a music album, collectible cards for sports, or even a meme. Anybody can make money online by selling their talents and skills as an NFT. These assets can be bought and sold with cryptocurrency because they are encoded using similar software. This simplifies the transaction process.

Although NFTs might seem new and trendy, they are actually a well-known term that has been around since 2014. NFTs have seen a surge in popularity recently, despite blockchains like Ethereum and Tezos establishing strict standards to ensure the authenticity and uniqueness of digitally represented items. The Indian Ethereum price was Rs. As of August 13, 2018, the price of Ethereum in India was Rs. 2.45 lakhs at 2:30 pm IST.

What makes an NFT different?

NFTs, unlike other digital creations that can be copied multiple times, are unique and have a unique identification code. Similar to thumb impressions and NFTs cannot be duplicated. It is therefore difficult to create and circulate fake NFTs. They cannot be exchanged directly with each other like cryptocurrencies. NFTs are certificates that have been secured using blockchain technology.

You can turn almost anything into an NFT. Vintage Super Mario Bros cartridges or Andy Murray's Wimbledon-winning moment are all examples. Popular memes and World Wide Web source codes are also available.

What are the top NFT sales?

A meme that was viral in 2015 has resurfaced. It was sold as an NFT and cost Rs. 38 lakhs. 38 lakhs. This funny meme was created by a Pakistani man after a fight with Mudasir, his best friend. Muhammad Asif Raza Rana from Gujranwala was able to profit greatly from the friendly fight. This meme, which featured photoshopped images of Rana and Mudasir with the title "Friendship ended at Mudasir", was resurfaced in early 2012 and became a global sensation.

Another outrageous sale of an NFT occurred in crypto markets a few days ago. The sale of a digital painting of a rock, which was part of a 2017 pet project, was very expensive. The NFT sold for Rs. 75 lakhs. Ether Rock is a digital representation of large stones that are grey in color.

A cartridge from Nintendo's Super Mario 64 set a new world record for auction in July. It was sold for approximately Rs. 1.56 million, or $ 1.56million. 11.58 crores).

The auction of the first-ever NFT took place in June for $1.47million (roughly Rs. 10 crores). A CryptoPunk, a digital pixelated figure that was sold by the same auction house for $11.7 million (roughly Rs. 85 crores).

Seth Phillips, also known as "Dude with Sign", was a popular Instagram user who posted photos of him with relatable placards that addressed everyday problems. He decided to make his own collection of NFTs from these images. Seth has more than 7.6 million Instagram followers.

Jack Dorsey, Twitter CEO, was richer than he could have imagined by selling his first tweet as an NFT. It made him $2.9 million (roughly Rs. 20 crores). The March 21 tweet was sold via auction through Valuables. It was owned by Cent, a US-based company.

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Beeple, a digital artist, sold a jpeg file worth $69 million. This is roughly Rs. Christie's, a well-known auction house, sold a jpeg file for $69 million (roughly Rs. 512 crores) in an auction that was unique.

Why is NFT important?

NFTs are believed to be the way to control ownership. Only one person can own an original, and they have a Blockchain entry to support them. Artists have the ability to monetize digital artwork. They will also get a royalty if it sells or is changed hands after its initial sale. It can also be a breakthrough in the music industry. Kings of Leon, an American rock band, released their latest album as an NFT. It generated $2 million (roughly Rs. 15 crores in sales.

You can buy NFT with cryptocurrency.

Many marketplaces accept Ethereum. However, technically, anyone selling an NFT is allowed to ask for any currency they desire.

What are NFT's downsides?

NFTs can exhaust a lot of electricity because they use the same blockchain technology that cryptocurrencies emit greenhouse gases.

The downside to NFTs is that you may end up paying more because there are so many people obsessed with them. From a seller's perspective, NFTs will become a digital collectible and the hype will fade. Profits will be harder to find as everyone in the market will want to make profits.