Last updated: September 3, 2022
If you have been surfing the internet for some time, it becomes impossible to miss a term, that of NFT. Indeed, we find this term absolutely everywhere at the moment and some large sites are starting to include them.
In this area, we can for example talk about Twitter which now offers you the option of putting an NFT that you have acquired as a profile photo on your account, identifying at the same time that you are the owner.
But then, in the end, What are NFTs? Well, that's what we're going to see in this article where we're going to start again based on what these are. Not Fungible Token. That way, even if you had no idea what they were, you should see more clearly.
Indeed, we will start by explaining how they work by explaining to you what the blockchain is then one thing leading to another, we'll arrive on how to get started in this field if you wish it.
First, what does NFT mean?
NFT is the abbreviation of the English term "Non Fungible Token", which means in French "Non-fungible token".
Non-fungible means it is unique and cannot be replaced by something else. For example, a euro is fungible — exchange one for another euro, and you will have exactly the same thing.
However, a one-of-a-kind collectible art board is not fungible. If you swap it for another board, you'll get something completely different.
NFTs and Blockchain
Before talking about NFTs themselves, we must look at something else, The blockchain. Indeed, without going into too technical details, the blockchain is a fairly simple technology.
In fact, she will to store and transmit information. It is also on this technology that the NFT exchange will take place. Indeed, each time an NFT transaction will take place, it will be registered on this blockchain.
If we were to give you a somewhat colorful summary of what this blockchain is, it is a kind of large directory where you can register all sales transactions, like an account book in a way.
It is therefore via this technology that you will be able to exchange NFTs. Moreover, the exchanges are not done via classic money like the Euro or the Dollars, but via crypto-currencies, like theEthereum.
What can be an NFT?
Well now that we have seen the principle that allows NFTs to be exchanged between people, it is time to take an interest in another big question, i.e. what can be an NFT ?
Well, in fact, anything can be an NFT. Indeed, quite often, we tend to see NFTs that are works of art put forward, but that is not the only thing you can sell.
In theory, there is no limit, but if you are interested in what you can find on the different marketplaces, you will find, for example, sounds, videos, photos or even locations in virtual environments
Even tweets matter. Twitter co-founder Jack Dorsey sold his very first tweet as an NFT for $ 2,9 million
The potential impact of NFTs in commerce
But these NFTs are not only useful in the exchange of art. Indeed, they could land very soon in the world of luxury trade and this is already the case for some brands.
NFTs could just solve the problem of counterfeiting. Indeed the idea is to associate an NFT with the purchase of a branded object as a certificate of sale which is almost impossible to counterfeit.
Thus, when you buy this branded object second-hand or from a reseller, you can demand that the linked NFT be sent to you as proof that it is indeed a branded object and not a counterfeit.
Why this sudden interest in NFTs?
But if you're here, it's not for the scopes of NFTs in commerce. Indeed, it is not for these reasons that the field of NFT has exploded in recent months, but for financial reasons.
Indeed, we keep seeing articles with record NFT sales, the phenomenon being a bit fashionable at the moment, we have to admit. However, pay attention to this kind of title which can mislead you.
NFTs are also a lot of randomness. In effect, collections can rise in value within days and quickly collapse. Remember that you are investing real money and if you are not careful you could simply lose money and get yourself into complicated situations. I invite you to read 5 9 Risks Newbie Cryptocurrency Investors Face.
How to buy NFTs?
Once this is done, you will simply be asked to link your cryptocurrency wallet for future operations. Once it's done, you can browse these sites.
You will then have works that will either be sold at a fixed price or sold at auction. From there, the purchase system is classic and once the sale is won, you will simply be asked to sign for the blockchain before your new NFT will arrive in your collection.
From there, this NFT belongs to you as we have just said and you can either decide to keep it or decide to sell it, if you see that the prices increase for example, it is you who decide.
How to sell it?
We just saw it, buy NFTs, it's not very complicated, but selling it does not require great computer knowledge either. Indeed, go to the same platforms, create the same account and you can open your own store.
There, you will be able to put your works up for sale with the same principle, namely, the fact of choosing whether you want it to be an auction or a fixed price. You will also be able to adjust the royalties, that is to say the percentage that you will take on the next sales.
Besides, it seems logical, but we tell you all the same, you can only sell NFTs that you own yourself. In effect, it is totally illegal to take works on the internet for example to resell them.
Finally, be aware that to put an NFT up for sale, often you will have what is called a gas fees which is a tax that can quickly rise in the €150 about. However, it is possible not to pay this gas fee and for that, you must sell your NFTs on the Polygon blockchain and not Ethereum.