Last updated: September 3, 2022
If you have been browsing 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, at the same time identifying 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 on the basis of what these Not Fungible Token. That way, even if you had no idea what they were, you should see things more clearly.
Indeed, we will start by explaining how they work by explaining to you what 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 in French means “ Non-fungible token"
Non-fungible means it is unique and cannot be replaced by anything 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 painting 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 be interested in 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 exchange of NFTs will take place. Indeed, each time an NFT transaction takes place, it will be recorded 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, exchanges are not made via classic money like the Euro or Dollars, but via cryptocurrencies, such asEthereum.
What can be an NFT?
Well now that we have seen the principle which allows NFTs to be exchanged between people, it is time to be interested in another big question, that is to say what can be an NFT ?
Well, in fact, anything can be an NFT. Indeed, very often, we tend to see NFTs which 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 do not only have use 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. In fact, the idea is to associate an NFT with the purchase of a branded item as a sales certificate 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 reaches of NFTs in commerce. Indeed, it is not for these reasons that the NFT field has exploded in recent months, but for financial reasons.
Indeed, we keep seeing articles with record NFT sales, the phenomenon being a bit fashionable currently, it must be admitted. However, be careful with this type of title which can mislead you.
NFTs also involve a lot of randomness. Indeed, collections can increase in value in a few days and collapse quickly. Remember that this is real money you are investing and if you are not careful you could simply lose money and put yourself in complicated situations. I invite you to read 5 9 Risks Newbie Cryptocurrency Investors Face.
How to buy NFTs?
To buy NFTs, there is nothing very complicated to do. In effect, you simply have to register on the different marketplaces available at present as OpenSea, Rare or even Super Rare.
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 seeing your new NFT 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 them doesn't require much 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, choosing whether you want it to be an auction or a fixed price. You will also be able to pay the royalties, that is to say the percentage that you will take on future 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, know 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.