Non-fungible tokens (NFTs) have recently gained popularity as a way to sell and trade digital artwork and other unique digital assets. In this beginner's guide, we'll explore what NFTs are, how they work, and why they're becoming increasingly popular.


What are NFTs?

NFTs are digital assets that are unique and indivisible. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible and interchangeable, each NFT represents a specific digital item, such as a piece of artwork, a video, or a tweet. NFTs are stored on a blockchain, which makes them secure and immutable.


How do NFTs work?

NFTs are created using smart contracts, which are self-executing computer



programs that automatically enforce the terms of the contract. When an NFT is created, the smart contract assigns a unique identifier to the asset, which is recorded on the blockchain. This identifier verifies the ownership and authenticity of the asset.


Why are NFTs becoming popular?

NFTs have gained popularity because they provide a new way for artists and creators to monetize their digital creations. By selling their work as NFTs, artists can ensure that their work is unique and cannot be duplicated. Additionally, because NFTs are stored on a blockchain, they can be easily traded and verified, making them a secure and efficient way to buy and sell digital assets.


How to buy and sell NFTs?

NFTs can be bought and sold on a variety of online marketplaces, such as OpenSea, Nifty Gateway, and SuperRare. To buy an NFT, you will need a cryptocurrency wallet that supports the currency used on the marketplace. Once you have purchased an NFT, it will be transferred to your wallet, and you will have complete ownership of the asset.


Conclusion

Non-fungible tokens are a new and exciting way for artists and creators to monetize their digital creations. Although the market is still in its early stages, NFTs have already gained significant attention and popularity. As blockchain technology continues to evolve, it is likely that NFTs will become an increasingly important part of the digital economy.


references

What are NFTs and why are some of them being sold for millions? by the BBC: https://www.bbc.com/news/technology-56371912

“Non-fungible tokens (NFTs): What they are, and why they're selling for millions” by CNBC: https://www.cnbc.com/2021/03/11/nfts-what-are-they-and -why-are-people-paying-millions-to-buy-them.html

“The NFT market tripled to $250 million in February” by The Verge: https://www.theverge.com/2021/3/2/22308920/nft-market-sales-volume-february-cryptocurrency

“NFTs: A booming market for digital art and other unique digital assets” by TechCrunch: https://techcrunch.com/2021/03/07/nfts-a-booming-market-for-digital-art-and-other- unique-digital-assets/

“Understanding Non-Fungible Tokens: A Beginner's Guide” by CoinDesk: https://www.coindesk.com/what-are-nfts