NFT among the hottest Google searches in 2021; here’s everything you need to know about it
Digital collectibles, also known as non-fungible tokens (NFTs), remained in the limelight throughout the year after Twitter founder Jack Dorsey’s autographed âfirst tweet,â after he created his Twitter account, was auctioned off and sold for $ 2.9 million using Ether cryptocurrency. A slew of blockchain internet news and the surge of interest in NFTs have made tokenized digital art a significant asset form and also secured its place among the most popular searches in 2021, according to Google. However, whether NFTs are worth the hype or the money, it is still a distant question as many struggle to understand the concept. Here are some basics that might help you clean up the cloud:
What is NFT? Why are they expensive?
NFT stands for non-fungible tokens, which at this point are some of the classics of the internet. NFTs are tokens that can be used to represent ownership of unique items, from tacos to toilet papers to memes created on the Internet. Although, one can even symbolize things like paintings or real estate underneath. âThey can only have one official owner at a time and they are secured by the Ethereum blockchain – no one can change the ownership record or copy / paste a new NFT,â says Ethereum.org. In simpler terms, NFT is an economical term that one can use to describe their property like furniture or files on the computer, and they are expensive because these things are not interchangeable due to their unique properties.
On the other hand, they can be differentiated from fungible items, as fungible items can be swapped based on their value sets them rather than a particular property. For example: ETH (cryptocurrency) or dollars are fungible because 1ETH / $ 1 can be exchanged for items of the same value. It’s similar to a collectible card.
How does NFT work?
NFT can literally be anything like drawing, music, artificial intelligence, etc., created digitally. As The Verge explains, most NFTs are part of the Ethereum blockchain, but are very different from bitcoins or dogecoins, which is a whole different story. In short, the NFT is supposed to be a collective object, only digital. When a person buys a TVN, he or she owns 100% of it and only one owner can have the right at a time. Digital data helps determine who owns the original right, rights can only be transferred through transfer tokens between buyers and sellers.
What were popular NFTs in 2021?
According to Google, the most popular remained the âfirst tweetâ from the founder of Twitter, which was contributed by a Malaysian buyer. The second most popular was ‘Hasmarks’. It is a living art collector’s item assembled by more than 70 artists from around the world and made up of 16,384 unique digital portraits, according to TRG data centers. It was sold at a 100,000% profit over a three-day period, Digit.fyi reported. The most expensive, however, was placed fifth in the “most popular” list. The piece, titled “Everydays: the first 5000 Days”, was premiered by Mike Winkelmann (Beeple). It was sold for $ 69 million in February. Here is the full list of the top 10:
1. The first tweet, sold for $ 2.9 million
2. Hashmasks, sold for $ 16 million
3. Doge NFT, sold for $ 4 million
4. Grimes NFT, sold for $ 6 million
5. Daily: first 5000 days, sold for $ 69 million
6. Rick and Morty NFT, sold for $ 1.6 million
7. Crossroads NFT, sold for $ 6.6 million
8. CryptoPunks # 7804, sold for $ 7.5 million
9. Genesis Estate NFT, sold for $ 1.5 million
10. World Wide Web Source Code NFT, sold for $ 5.4 million
How to buy?
If one wishes to engage in NFT collection, then certain key elements must be acquired:
1. A digital wallet can store NFT and cryptocurrency.
2. One can buy NFT using crypto or credit on platforms like Coinbase, Kraken, eToro or PayPal.
3. Popular markets for NFT are OpenSea.io, Rarible, Foundation, but should be sure to research carefully before purchasing.