NFTs are digital assets representing physical objects like art, music, in-game goods, and films. They are frequently purchased and traded online in cryptocurrencies and are typically coded using the same basic software as many cryptocurrencies. NFT, which has been around since 2014, is now increasing in popularity. This is because digital art purchases and sales are getting increasingly popular. Surprisingly, NFT transactions have totalled 174 million US dollars since November 2017. Furthermore, NFTs are typically one of each type, or at the very least one of a very restricted number of processes, and each has a unique identifying code. Interest in NFT? nft marketplace design malaysia.
Why NFT is so popular today?
Mike Winkelmann, better known as Beeple, has successfully used Non-Fungible Tokens (NFT) to sell his art. Through his artwork entitled Everyday: The First 5000 Days sold for Rs 990 crore. At least, that’s one of the many reasons why NFT is so popular. In fact, there are several factors behind the popularity of NFT, including:
– Exclusivity Factor
Exclusivity or rarity is definitely a factor that makes NFT so popular that some people may be willing to pay more.
– Authenticity Factor
Under its authenticity, NFT has a unique hash code that is very different from other files. Don’t forget the innovative contract feature, an extra layer of protection that makes each token unique. Also, remember to minimise fraud as non-exchangeable tokens cannot be copied or duplicated. Also, don’t forget the transparency of blockchain technology. This allows verification and proof of file validity.
– Celebrity Factor
Apart from the above two factors, let’s not forget the role of celebrities involved in the rise of this unreliable token. An example is NBA Top Shot, a site that trades basketball moments.
Jesse Schwarz bought clips of basketball games for over $200 million. This will definitely increase the visibility of the NFT under discussion.
How does NFT work?
NFTs become part of a distributed public data ledger that keeps records of every transaction activity within their scope. In short, NFT will be printed uniquely as a medium for representing objects or intangible objects, such as paintings, games, music albums, logs, and digitally based. If you own an NFT, it is the same as a collector of physical or digital goods that are converted into crypto assets to be traded. The buyer gets special ownership rights from the purchased NFT, and there will only be one owner at a time. The unique data on the NFT simplifies the process of verifying the buyer’s ownership and makes it possible to transfer tokens between NFT owners if needed. The original owner of the NFT can store specific data or information in it, for example, the signature of the owner of the work. The original purpose of the Non-Fungible Token was to provide business space for artists and content creators to have a unique experience selling their work globally in the palm of their hands. Artists who do not have gallery or auction hall facilities can use NFT to sell their artwork. Meanwhile, content creators or artists can sell their works to consumers only using Non-Fungible Tokens. Even the opportunity to get profits can be bigger than conventional methods.