What are NFTs - non fungible tokens

What are non-fungible tokens (NFTS)?

Last updated on April 22, 2021

No reason why YOU can’t earn a million dollars or more through this latest trend. Just create a non-fungible item, or digital asset, that’s thoroughly unique and appeals to a certain market. Advertise that digital asset on the right digital platform (e.g., OpenSea), convert its selling price into cryptocurrency, and push it real-time to the market that’s most likely to buy it. Then sit back and wait.

Alternately, you can also hunker on one of the various digital NFT marketplaces dedicated to selling these exclusive digital assets. Bid on a content and buy it, either to keep as a digital memento or to resell at (hopefully) a profit.

Warning: Catch the wave as it crests. One minute too soon and sunk market interest may doom your investment.

More on non-fungible tokens (NFTs)

A few years ago, I came across this amazing silk dress called Iridescence, produced by a Dutch startup called The Fabricant. With its incandescent shimmering style, the ankle-length, high-collared, long-sleeved dress fit anyone regardless of that person’s measurements. It never wore out, nor needed to be sent to the cleaners. The dress was featured in major fashion magazines, like Vogue, and sold for a clean $9,500. Thing was, the owner couldn’t wear it to a party, since the garment was digital – produced from a blend of 2D garment pattern-cutting software with 3D design software. But that didn’t matter.  The garment was non-fungible – which meant one of a kind. ̈ If you bought it, you spent  ̈unreal money,” as someone on Reddit quipped, ̈for an unreal dress.¨

This digital dress was the very first NFT. It was the harbinger of the NFT rage.

Today, digital non-fungible items exist across fields – art, sports, publishing, fashion. They are especially big in gaming.

Examples of NFT items that sold big

  • An online sale of a single pixel recently sold for $1.76 million at auction house Sotheby’s.
  • Twitter founder Jack Dorsey sold his first tweet for $2.9m.
  • Kings Of Leon sold their musical album, ‘When You See Yourself’, for $2million.
  • The NBA sold MVP trading cards and videos for $230 million.

NFTs can be anything from sporting cards to sneakers to digital representations of a rose which just sold for $20k online.

Even the NY-based Christie’s has a NFT on its auction block, said to be the first NFT sold by a major auction house.

Why these NFTs are valuable and their connection to cybersecurity

These non-fungible assets get their value through the blockchain. Each creation, or item, comes with its own blockchain encryption, attesting to its unique value and accompanied by a geo-encrypted tag on its creator, with details of its creation and location. Blockchain-produced, the content and its data can never be duplicated. It’s one of a kind just as is an original Monet. This non-fungible asset is then redeemed for Ether, BTC, or sometimes some other cryptocurrency, which you can then convert into fiat. Alternatively, you can play the game of hanging onto the NFT and turning it around for a higher price.

As an exclusive item, you want to keep your NFT secure, so all the regular cybersecurity precautions apply.  These include a complex password and a reliable digital wallet. The allegedly unhackable blockchain adds the guarantee that your investment is the one-and-only of its kind in the world.

How can you trade or buy NFT?

Get in on the NFT craze by browning these digital marketplaces and buying or trading its digital assets.

  1. Shop for your NFT online, using a top marketplace like OpenSea
  2. Connect your loaded digital wallet to that NFT marketplace
  3. Bid on your item and hope you’re the winner. Other items gave a “buy now” for a set price.
  4. To buy it, tap “Buy Now”, “Checkout ” and “Submit” – just like on any e-commerce site.
  5. Confirm your “gas fee” (usually Ethereum) and enjoy the item!

How can you create your own NFT?

Minting your own NFT is a breeze. Selling it for millions of dollars is another question. (A big name helps as does brute selling and marketing skills). These are the steps:

  1. Create your masterpiece
  2. Connect your digital wallet or one of the many NFT marketplaces
  3. Hop onto the “Create” section of that marketplace
  4. Upload your masterpiece
  5. Finalize the process by clicking the right button.

Sit tight and wait for sales to roll in.

Legal advice for buying, trading or selling NFT

NFT is nothing more and nothing less than gambling. You could make millions from your purchase or creation, or you could have invested your life’s savings in some dud and found no buyers.

Preston Byrne, a partner in Anderson Kill’s Technology, Media and Distributed Systems Group, suggests hedging your investments with the following precautions:

  • Know your field well, so you get the right value for your buck.
  • Check for the copyright stamp. Is this content authentic or is it a rip-off?
  • Look into the smaller print. With blockchain, the details are on the smart contract. Does a significant part of your sales automatically flow to someone else leaving you with next to nothing as a profit
  • Just because NFTs are a collectible, doesn’t mean you should engage in deceptive trade practices. Don’t sell rights you don’t have, nor infringe on third-party intellectual property.
  • Take your time. When selling an item, do the necessary legal legwork to make sure you win your rights.

Akin to any other type of investment, you’ll want to be familiar with the market. Investments can appreciate and depreciate. In the meantime, spend wisely.

Top 2021 NFT marketplaces

Use these marketplaces to mint NFTs, or trade them for fun or profit.

  • OpenSea – A prominent NFT marketplace that charges 2.5% on the price of successful sales
  • Superfarm – Designed for and popular with gamers
  • Rarible – Focuses on art-based assets and aims for thorough decentralization (in contrast to OpenSea).
  • Exchange – Helps gamers mint their own NFTs without needing to learn blockchain coding.
  • FansForever – A decentralized marketplace with cheap transaction fees and known for its celebrity content.
  • Hic et Nunc – A Tezos-operated marketplace that uses less energy.

The future of NFTs

You’re sitting on a bubble. NFT is akin to Bitcoin that was also expected to take off big, while no grocery store (or any store for that matter) sells you its products for its coinage. It’s natural that this fad exploded in the COVID-19 era when people had little else to do than stay at home. Playing online and dabbling in fantasy was their haven. Now, that post-COVID normality’s almost here, the question is whether this FOMO-trend will swell into mass adoption or implode before the year’s out.

Meantime, how about cresting the wave of this craze and producing your own exclusive digital asset?

Make it enticing, and you may have a dollar-making asset on your hands.