What is NFT and Why There is a Need for NFT?

“NFT (Non-Fungible Token) is a unit of data stored in a digital ledger called blockchain, which confirms that a digital asset is unique, one and only, therefore, not interchangeable. It can be used to represent any type of digital file. NFTs are copyrighted and tracked on the blockchain, ensuring uniqueness. In its blockchain network, it is generally produced in the ERC-721 and ERC-1155 standards, not in the Ethereum ERC-20 standard.”

With the popularity of cryptocurrencies in 2017, NFT production has shown an increase. In 2021, the interest in the use of NFT in different fields has ascended noticeably either. As of the first quarter of 2021, more than $2 Billion has been spent on NFT production.

Why NFT is Valuable?

The most important feature of NFT that distinguishes itself from cryptocurrency is that its uniqueness and individuality. Unlike cryptocurrencies, they cannot be exchanged with each other at the same unit price. That’s why NFTs are one in particular. The need and reliance on NFTs are increasing, as there are many areas where their unique properties have been using.

People often need to keep valuables in safe places, banks or in places where no one can think of. However, there is always a risk of losing or being stolen. In the event that it is taken back, you must prove that the item or money belongs to you. This is where NFT get involved. Due to its uniqueness, a key that only you have is the most accurate indicator that the valuable virtual item or money you lost belongs to you.

Access to digitally available NFTs is quite easy. Reproduction and copying are out of the question as it contains unique information. It is easy to use and store as there are no items that you need to physically store. You can eliminate the disadvantages of physically owning a high-value item by owning digitally.

Another feature that makes NFT valuable is that it uses blockchain technology such as Bitcoin and Ethereum, so it is effortless and error-free to track backwards. Data processed into blocks cannot be changed or deleted.

In October 2015, the first full-fledged NFT project, Etheria, was launched on the Ethereum network. Etheria’s 457 purchasable hexagon tiles sold for $1.4M. William Shatner processed 5000 digital cards consisting of his own photographs and sold these digital photographs through NFT.

The artist receives a share over the unit price in each handover due to copyright reasons. With NFT, artists can easily obtain the return of their labour. In addition, due to the fact that artists prefer NFT more, the trend towards NFT has increased significantly in recent years.

Digital Orientation

With cryptocurrencies taking place in our daily lives, people have turned to digital assets. Large companies, collectors, artists and entrepreneurs are now starting to sell their works digitally, yet at astonishing prices.

Some examples of digital sales include:

Elon Musk’s wife, Grimes, has put a digital art collection called WarNymph on market. Also, she generated $5.8 million in revenue through sales.

CryptoPunks company has put 10000 unique characters available on the Ethereum network for sale and the total revenue so far has reached $109 million.

The value of the “Dragon” character in the game named CryptoKitty was bought for 600 Ethereum, and this is only the money paid to a character. In addition, the company adopts out kitten characters at a price of between 5 ETH and 15 ETH.

Beeple’s 13-year-old piece “Everydays: The First 5,000 Days”, which was auctioned at Christie’s, sold for $69.4 million after the auction began on February 25. This sale holds the distinction of being the highest sale so far.

As a result of Mesut Özil’s collaboration with Genies Wearable, Mesut Özil Next Chapter Boots and The Kit were offered for sale for $2000. Both products found their buyers by auction.

Elon Musk uploaded a song about NFT to Twitter and announced that the NFT of this song is for sale. Musk’s song, on the other hand, sold 1.1 million copies.

A 3D rendered model of a house called “Mars House” created by artist Krista Kim has sold for over $550,000 on the NFT market for the first time as a piece of digital real estate.

Can NFT Be Forged?

From the very first moment of NFT’s production, people thought that fakes could also be produced. NFT technology works in integration with blockchain. Since the data in the blockchain is close to impossible to change, it is also impossible to produce fake NFTs as well. Users can use NFTs with peace of mind with the assurance of blockchain technology.

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