What is NFT? How does NFT work and its Future?

From the past few months NFTs has gained so much popularity that it left Cryptocurrency behind in volume of searches. The full form of NFT is Non-Fungible Token.

Few months ago, a person named Mike Winkelmann also known as Beeple sold his artwork for 69 million dollars which was bought by an Indian businessman Vignesh sundaresan. Zack Dorsey, former ceo of Twitter sold his first tweet for $2.5 millions. 

Also, India’s famous Celebrities like mahanayak Amitabh Bachchan and salman khan also showed their interest in NFTs by announcing to soon launch their own NFTs. So, what exactly NFT is, why people are attracted towards it and why they are ready to pay any amount to purchase these NFTs. Let’s go deep into this topic and discuss what is NFT?.

What is NFT?

Non-Fungible Token (NFT) is a unique digital asset. Why is it called Non-Fungible? Before learning about Non-Fungible, first learn the meaning of fungible. In very simple words fungible means the things which can be exchanged with others. For example, suppose you have a 5rs note and your friend has 5rs too. Can you exchange this note with your friend? Obviously yes! because a 5rs note is always equal to another 5rs note. But can you exchange your house with another person? No. As each house has its unique properties or value. These things are called Non-Fungible, which can’t be interchanged. NFTs are also like this, because of their unique properties, they can’t be replaced. Like many Cryptocurrencies NFTs are works on Ethereum-blockchain technology. 

How NFT works?

NFTs are based on Ethereum-blockchain technology. Although, there other technology too such as flow or tezos which supports NFTs. As Ethereum-blockchain works on a smart contract model, it’s easy to track transactions which helps in verifying the ownership of a particular NFT. 

In this digital era, anyone can use things like photos, arts, videos, music, etc which are available on the internet. But when these things are made through NFTs their uses are limited. No one can use these arts, images, etc in commercial use. By doing so the owner can sue a case.

How to earn money In NFTs?

There are a lot of ways you can earn money in NFTs. I’m mentioning some of the best ways below:

1. Create NFTs

how to create nfts

The first way to earn money in NFTs is to create it and then sell it. If you are a digital artist you can create nfts of anything such as images, arts, video, music, etc. After creating these NFTs you can sell it. If you already have a collection of these things you can convert them into NFTs and then sell them.

To list your nfts you can use platforms like opensea, superrare, foundation, or more where you can list these nfts by giving some amount. 

2. Trading NFTs

Second method to earn money is trading of NFTs. In this you can earn through buying and selling of NFTs. For example, you can purchase some NFTs and can sell them for a higher price.

Trading NFTs is not an easy task, it requires full knowledge about art and more. As many frauds are happening nowadays you should have complete information about these NFTs such as which NFT is best and which one is worthless. If you don’t have much knowledge about NFTs or art I won’t recommend you to go in this otherwise you have to deal with heavy loss in the future.

3. Make a blog

Making an NFT blog is one of the best ways to earn money through NFTs. By making a blog you can share your knowledge or experience of NFTs. NFT is a new topic and people don’t have much knowledge about it so by making a blog you’re helping them to gain some knowledge. You can also create community in this. Later on, you can monetize your blog. There are ways through which you can monetize your blog. The popular one is Google adsense. 

4. Rent out NFTs

Renting out NFTs is also considered a good way to earn money from it. You can rent your NFTs and can earn a good amount of money from that. As NFTs are based on Ethereum-blockchain technology and the transactions are recorded through a method called smart contract you don’t have to worry about your ownership. 

5. NFT gaming

NFT gaming

NFT gaming is a way to earn money in which you can play any of your favourite blockchain games and in return you will receive in-game tokens. These tokens can be converted into other Cryptocurrencies or even in your country’s fiat currency(rupee).  Ex – Axie infinity

Some of these games also allow you to  trade in-game tokens.

Also read: Best 5 Free Software To Create NFT art

What is the future of NFTs?

Daybyday people’s interest towards NFTs is increasing which shows that the future of NFT can he bright. Joack Dorsey who sold his first tweet “just setting up my twttr.” for more than $2.9 million and even celebrities like Amitabh Bachchan and salman khan who announced to launch their NFTs which is showing that the people are ready to pay any amount for this. According to this NFTs can bring revolution in the future.

Some Cryptocurrency experts are saying  that 40% crypto user will use NFTs in future. Many people are also considering it a big opportunity for digital artist. According to these, NFTs can bring revolution in future.

Hope You like this article in which we have explained about What is NFT?, how NFT does work?, How to earn money In NFTs? and what is the future of NFT. To support me don’t hesitate to share with your friends or people who are cryptocurrency enthusiasts.

Disclaimer: The information provided in this article is for education purposes only and doesn’t constitute investment advice. So, if you want to invest or trade in any Cryptocurrency, invest at your own risk. CoinGyani will not accept liability on loss or damage, which may arise directly or indirectly using such information.

What is the full form of NFT?

The full form of NFT is Non-fungible Token

What is NFT?

Non-fungible token (NFT) is digital tokens which is somewhat similar to cryptocurrency. But, due to its unique properties it can’t be interchanged. It includes image, video, music, audio, art, etc.

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