Understanding NFTs

An NFT is a digital content, like a digital image, video, music file, and more, that’s linked to a blockchain.

NFT stands for Non-Fungible Token. ‘Non-Fungible’ essentially means something that is unique, for example, a painting by Monet or Picasso. Accordingly, NFTs are unique and not interchangeable with each other. In contrast, a £1 note or a $1 bill is fungible because millions of them exist and they can be exchanged or replaced with one another.

How do NFTs work?

NFTs use blockchain technology and most are based on the Ethereum blockchain. NFTs have become increasingly popular as a way of creatives monetizing digital art, images, videos, music, and more. 

A token is placed on the blockchain that is uniquely linked to the NFT, which is used to prove ownership of the NFT. The owner of the NFT will gain rights to use the digital content, but the creator can retain a claim to it that will allow them to benefit from future sales or transfers of the NFT.

Most NFTs are based on the Ethereum blockchain, but there are also popular NFTs built on Solana and Cardano. 

What are the benefits of NFTs?

The benefits of NFTs can be seen from the perspective of both artists and buyers. 

Benefits of NFTs for artists

NFTs allow creatives to sell online to anyone, anywhere in the world. They can showcase their work to everyone without having to be well-known at the outset. NFTs increase the opportunities for artists to be paid for their creations, whether they are pictures, videos, music, etc.

Artists can also receive payment every time the NFT ownership changes hands, and this sell-on fee can help to create a more financially secure environment for artists.

Benefits of NFTs for buyers

The uniqueness of NFTs can hold value much like a traditional piece of art. The value of an NFT is in the original version of the artwork, the same as it is with an original work by Monet or Picasso. And in the same way that people can make prints of original artwork, it is possible to save a piece of art associated with the NFT. 

Like a print of an original artwork, the ownership remains with the person with the original copy, in this case, the person holding the ownership of the NFT. It is this unique ownership concept that has allowed for the price of some NFTs to rocket!

Some of the most expensive NFTs

Beeple’s Crossroad — $6.6m
CryptoPunk #7804 — $7.6m
CryptoPunk #3100 — $7.67m
CryptoPunk #7523 — $11.75m
Everydays: the First 5000 Days — $69.3m

The NFT Market

There are multiple marketplaces to purchase and sell NFTs that make the process quick and easy. Buyers need to hold cryptocurrencies in order to get involved in the purchasing of NFTs and most NFT marketplaces will let you connect your wallet to bid for NFTs. 

Using Cryptocurrency to Purchase NFTs with STICPAY 

To bid for or purchase NFTs you need to hold crypto. As NFTs are predominantly based on the Ethereum network, you often need to hold Ethereum to get involved in buying NFTs.

STICPAY offers a fantastic e-wallet and payment solution that allows you to exchange fiat currency for Ethereum, and to deposit and withdraw your cryptocurrency quickly, securely, and at minimum fees. 

With cryptocurrency’s popularity continuously growing, more businesses are beginning to accept crypto as a valid method of payment, encouraging more customers to use decentralized cryptocurrencies. 

If you would like to explore the market for NFTs with a fast and reliable STICPAY e-wallet, you can join here today!