What is NFT in simple terms ? and How NFT can benefits you ?

NFTs are trending in market and if you want to know what exactly it is? and how NFTs works in simple terms then this post is for you.

NFT stands for Non-Fungible Token where-

  • Non-Fungible part of NFT means, that it is completely unique and cannot be directly replaced with something else and, Tokens serve as the digital certificate of ownership for these assets.
  • A digital asset become NFT once you combined it with an digital signature through blockchain technology. This process is called Minting.
  • Once the digital signature attached, now that digital asset become NFT which will have ownership of yours (a unique digital proof).

All digital assest can be a NFT.

  • Any digital assets (image, video, memes, audio, game, game items etc) can be a NFT.
  • If someone wanted that NFT, they need to purchase it from you because, There can be only have one official owner at a time and they're secured it's ownership through blockchain- , So no one can modify the record of ownership or copy/paste a new NFT into existence.

it‘s a similar idea with the Mona Lisa - let’s say you had someone make a copy of the Mona Lisa, and none of your friends could tell the difference. But the real Mona Lisa has a provenance, which is a way to prove the buying and selling history all the way up to the current owner. And that’s what the blockchain technology does with NFTs.

From above points i guess, you understand what is the meaning of NFT and how they work.

Benefits of NFTs:

  • Copyright - If the seller chooses to convert his digital art in NFT - they will have complete control over their asset and they can easily utilize it for commercial use.
  • Decentralized Marketplace - NFTs allow creators to make money directly from their work. It eliminate the middlemen(company/individual) and allow the artists or the original creators to connect and do deals directly with their customers.
  • Immutable - No one can change the attached digital ownership data on the NFT, no one can remove your image, or the name of the token, etc. This means it will never change, it will never be removed, it cannot be taken down off the blockchain. This is what gives it so much value.
  • Rare - Since they are unique and cannot be copied, they are rare. Most of the time, there are very few NFTs from an artist or seller - very rarely do they have 1000s of NFTs. Therefore, you can safely assume you would be one of the few people in the world that owns an collectible item, that can be resold.

opensea nft marketplace
OpenSea NFT Marketplace

How to make money with NFT? (Bonus)

There are three ways to do so- 

1: Create your assets and sell

  • Create Digital Asset and convert it to NFT, then sell it on marketplace and also add royalties fees for using your NFT.
  • Marketplaces: OpenSea, Rarible, Crypto NFT etc.

NFTs collection on Rarible Marketplace

2: NFT trading & flipping

  • Find valuable & rare NFT, buy it in cheap rate and resell it in high rate on the marketplace.

3: Lend your NFT for interest

Polkastartee gaming guild application for scholariship
Polkastarter Gaming Guild

  • You can loan your NFTs to other people and earn some % of crypto, but this feature only works in gaming. Blockchain based NFTs games provide this option, where you lend in-game items (NFTs) to other players, Lender players called Managers and who take NFT are called Scholars.

  • In blockchain-based play to earn games, scholar use your NFTs to earn crypto token by playing these games and these earned tokens distributed between Scholars & Managers as per percentage.

Hope this content bring you great value in terms of knowledge. Share it, it will motivate us to bring more useful post in simple terms.

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