Imagine coming across a beautiful painting while browsing online—a scenery filled with rich colours and a calm setting that immediately pulls your attention. Upon clicking the image, you learn that the piece is listed for sale on an internet-based platform.
It might be a reproduction of something by Van Gogh or Salvador Dali, and you’d naturally assume that the original creation is stored in a museum or owned by someone wealthy enough to afford such a luxury. The idea of owning such an artwork may feel far-fetched for many ordinary people.
That thinking is gradually changing. With the introduction of NFTs, anyone now has the opportunity to own something exclusive—similar to owning an original. A good example is Jack Dorsey, the former CEO of Twitter, who bought the first-ever tweet as a digital possession.
Blockchain becomes the new gallery wall for creators (Photo: Getty Images)
While that tweet can be viewed or even printed by anybody, the actual ownership lies with the person holding the NFT—initially Jack Dorsey, until it was transferred through sale.
You might have a few questions running through your mind at this point, so let us now break things down.
What is an NFT, or What Does NFT Stand For?
The abbreviation ‘NFT’ represents ‘Non-Fungible Token.’ Here, ‘fungible’ is understood to mean interchangeable or replaceable, while ‘non-fungible’ indicates uniqueness. A token refers to a digital representation of value or ownership. Put together, an NFT is a type of digital asset that is one-of-a-kind and cannot be exchanged equally with another.
You can picture NFTs as rare collectible cards with their own individual qualities. These tokens usually represent ownership of digital items like art or digital goods, and in some cases, physical items as well.
They are held on a system called Blockchain, which helps ensure security and traceability. Blockchain technology serves as the supporting system that validates ownership and authenticity.
This method introduces a fresh opportunity for individuals to take possession of rare digital creations. Suppose you designed an amazing digital piece or invented a creative online game item—you could convert that work into an NFT.
Once you do so, the asset becomes attached to your identity on the Blockchain. Although people can download or share it, the authentic version will remain tied to your ownership.
For people unable to afford the full price of a premium NFT, shared ownership is another option. This allows a group of people to jointly hold one NFT, a method referred to as fractional ownership.
There is also a layer of protection provided through the use of smart contracts. These digital agreements are written into Blockchain code and automatically carry out transactions when certain conditions are fulfilled.
Main Features of NFTs
NFTs serve as proof of possession for digital creations, whether they are artworks, collectibles, or other valuables. They help individuals acquire and transfer rare virtual assets.
Security and validation are possible because NFTs are hosted on Blockchain technology, which decentralizes information and applies cryptographic protections. This arrangement allows anyone to confirm the originality and owner of a token.
Most NFTs are created in small numbers, which helps maintain their rarity.
Some NFTs can be divided into smaller portions to enable shared ownership or partial value.
The coding of NFTs is done with smart contracts. These contracts contain buyer and seller terms directly in the code, enabling transactions to happen on their own once set conditions are met.
There is compatibility across different apps and systems, meaning NFTs can function on multiple platforms, making them quite flexible.
Types of NFTs or Digital Assets
ARTWORK: Digital artists can sell their pieces directly to fans through NFTs while providing buyers with clear proof that the art is genuine.
COLLECTIBLES: Digital versions of traditional trading cards or gaming items can be bought and owned through NFT platforms, making collectibles one of the most popular categories.
REAL ESTATE: In digital spaces, NFTs can indicate ownership of virtual land or real estate, especially in online environments like the Metaverse.
MUSIC: Musicians are now offering digital albums or tracks as NFTs, which sometimes come with exclusive perks such as meet-and-greets or behind-the-scenes content.
DOMAIN NAMES: NFTs can represent who owns a particular domain name or other online identifiers, transferring that ownership securely.
TICKETS: Some NFT systems are used to issue event tickets, ensuring validity and allowing for easy resale with proof of authenticity.
IDENTITY: There are NFTs created to represent personal information or digital reputations, giving users more control over how their identity is confirmed and shared.
Once you understand these foundational ideas, you’re in a good position to move forward and learn how to create, buy, or sell NFTs, or even build a marketplace.
How to Mint/Make an NFT?
The process of minting an NFT involves a few necessary actions:
You first need to produce or acquire the digital file you wish to convert into an NFT. This could be a graphic, a game item, or another online property.
Choose a Blockchain that offers NFT support. Ethereum, Binance Smart Chain, and Polygon are among the most widely used.
Set up a digital wallet that works with your selected Blockchain. This will store your cryptocurrency and any NFTs you hold.
Acquire a portion of the Blockchain’s own cryptocurrency—for instance, ETH if you’re using Ethereum. This will cover the gas fees involved in creating your NFT.
Finalise your NFT by uploading it to the Blockchain. Once accepted, it becomes accessible for others to view and possibly buy.
If you’re looking for a step-by-step explanation on how to design digital artwork for NFTs, you may find “How to Mint an NFT: A Guide to Create Your Digital Artwork” helpful.
Now that your NFT has been created, you might wish to either sell it or purchase another one. Here’s how to carry that out using various NFT platforms.
How to Buy and Sell NFTs
NFTs turn digital collectibles into prized possessions (Photo: Alamy)
To carry out NFT transactions on OpenSea, follow these guidelines:
Begin by setting up an account on OpenSea’s website. You’ll need an email and a password to proceed.
Connect your wallet to the OpenSea platform. This enables the use of cryptocurrencies like Ethereum to pay or receive payment.
Search for NFTs by category or artist until you find one that appeals to you. Click on it for full details and confirmation of its features.
To purchase, click on the buy option and proceed with payment using your wallet. You will also need to cover any additional fees.
To sell, list your NFT by filling in details about it and setting a price. Then wait for someone to make an offer and finish the purchase.
OpenSea also provides different tools that can assist users in making their buying or selling experience smoother.
Should you want a broader understanding of buying, selling, and creating NFTs across other platforms, check out “How to Buy, Sell, and Create NFTs: A Complete Guide.”
By this point, your grasp of NFTs and their workings should be solid.
Famous NFT Transactions & Industry Insights
March 2021 saw a digital piece by Beeple sold at Christie’s for $69.3 million, placing it among the highest-value NFT sales ever.
The NBA introduced Top Shot, a platform where fans can purchase official digital versions of player highlights. In a single week of October 2020, it brought in over $230 million in sales.
American rock band Kings of Leon distributed their album “When You See Yourself” as an NFT in February 2021, providing additional content and fan access.
NFT trading saw explosive growth on Rarible, which recorded over $300 million in transactions during the first quarter of 2021.
Even established financial firms like Grayscale and CoinFund have started engaging with NFTs by launching dedicated investment products focused on this area.
This digital marketplace has grown rapidly and seen increasing use across industries and audiences.
NFT Education, Jobs & Salary
As digital interactions expand, NFTs have grown into a new form of owning and exchanging unique assets online. From personal ID to digital art, their usage continues to grow in scope and demand.
Numerous platforms offer education tailored to NFTs and the Blockchain framework that enables them. Certifications like the Certified NFT Expert and courses from the Blockchain Council provide flexible learning paths.
Webinars and audio discussions often serve as rich sources of knowledge for those aiming to enter the NFT space or enhance their understanding. Participating in online communities and professional forums can further expand one’s access to useful resources and potential job opportunities.
