What is an NFT?

what is a NFT


Bitcoin, Dogecoin, Ethereum, we’ve heard of them all. Cryptocurrencies have become a phenomenon in the digital world as the latest way to invest. But what if you could invest in something that isn’t fungible; something that is one-of-a-kind. That’s where an NFT comes in. 


NFT Explained 


Wondering, what is a NFT? An NFT is a non-fungible token. A non-fungible token is a unit of data stored on a digital ledger, called a blockchain that certifies a digital asset to be unique and therefore not interchangeable. This differs from cryptocurrencies like Bitcoin because one can exchange a bitcoin for another and the value is the same, however, with an NFT, it is a one-of-a-kind item that cannot be traded. NFTs represent real-world objects like art, music, in-game items, and videos. They transform digital works of art and other collectibles into one-of-a-kind, verifiable assets that are easy to trade on the blockchain. Imagine a collector’s baseball card that no one else has. NFTs can only have one owner at a time making them a unique and a successful way to invest. 


Why Buy an NFT?


According to Forbes Advisor, $174 million has been spent on NFTs since November 2017. Digital art buying has helped NFTs gain their popularity. To understand NFT art meaning, think of owning an original piece of artwork, there may be other paintings, but only one person can own the original. Buying an NFT is based solely on personal preference. Someone may purchase one in hopes that the value may go up one day or you may just have some money to spare and are looking to own something unique. Artists have benefited greatly from this notion as they can bypass art galleries and showrooms to display their art and profit from the royalties alone. 


How to Create a NFT


The interesting thing about creating an NFT is that anyone can do it! Because an NFT can be any digital item, it makes it quite simple to create. Finding a buyer is where your challenge may come in. The main thing you will need to create an NFT is a digital wallet, the purchase of Ethereum, and a connection to an NFT marketplace where you’ll be able to upload and turn your NFT into crypto art. Coindesk provides a step-by-step guide on how to create and buy an NFT that makes the process simple and easy. 


Whether you’re investing or creating, NFTs have gained tremendous popularity this year making them the next big thing you can look into. If you are looking to up your marketing game and step into the digital world, CarClicks inventory marketing may be just what you need. Contact us today to learn more about our auto marketing products