What Is NFT And The Way To Earn Millions From It?

08.02.2022
What Is NFT And The Way To Earn Millions From It?

 

Year by year, modern technologies penetrate into our lives more and more. They alter it and make people reconsider their views and perceive things that are familiar to them in an exceedingly different way.

You probably have heard about one among them: NFT.

What is NFT, why has art moved into virtual reality and do people make a fortune from it?

 

What is NFT and where did it come from?

 

NFT (non-fungible token) could be a unique non-interchangeable digital key created on the idea of cryptocurrency. NFT can't be destroyed or exchanged for another such token. It is a form of a certificate of uniqueness and uniqueness of any digital object. A non-fungible token confirms that a certain user possesses a particular digital object.

 

With the help of NFT technology, you can sell or buy any digital object - music, image, 3D model, text, game item, etc. Its essence is to register a certain ownership right to a specific virtual object in the blockchain. Owner information cannot be replaced or deleted.

 

In other words, it is like buying a very expensive painting. That is, it belongs to you, but at the same time, it is often exhibited in some well-known gallery for public viewing by art lovers. Everyone can a copy of it, take a photo of this painting, or use its copy on the net but only you have the original.

 

The first experiments with NFT technology began back in 2013-2014 using the Bitcoin scripting language. In 2017, a computer algorithm was created on the Ethereum blockchain.

  

How to earn millions from it?

 

Let’s have a look at the latest history of NFT and how it made some people very, very rich.

It is worth mentioning that at the moment, not everyone takes NFT technology seriously.

However, already in February 2021, the digital work “Daily: The First 5000 Days” by American artist Mike Winkelmann (Beeple) was first exhibited at a New York auction and sold on March 11, 2021, for a record $69.34 million in transfer from the Ethereum cryptocurrency.

 

"Everydays: The First 5000 days" is a collage of 5000 images created by Beeple over 13 years since May 2007. One day, the illustrator decided to make and post a new image every single day on the Internet. The extraordinarily responsible Mike Winkelmann has not missed a single day since. As a result, he has already collected more than 5,000 works.

 

The person who purchased an NFT-based digital object received not only the image itself, but also a unique token that contains the digital signature of the artist, the time the work of art was created, records of all previous sales and owners, and other equally important information.

 

Another famous example of NFT making someone a millionaire happened in early March 2021, when Injective Protocol purchased the Morons (White) stencil by renowned street artist Banksy for $95,000 and burned it live, thus creating the NFT.

 

The very idea of buying virtual items came to us from games. There are more such games in which you can buy something for real money.

 

Avid collectors are willing to pay crazy amounts of money for the right to own a rare item. NFT digital objects are sometimes among such artifacts. Everyone can look at the object and use its copy, but only one person retains ownership. In the case of NFTs, this right is stored in the crypto wallet of the sole owner.

 

Another good example that made a lot of fuss is the popular game CryptoKitties launched in 2017. The essence of this game is to shop for, collect, breed and sell virtual cats. Every cat is exclusive and has its own personal NFT. The offspring of two cats gives a brand-new digital character with random genetic characteristics of his parents or mutations. The value of a virtual cat varies and might reach $1 million.

 

It is important to understand that NTF is a tool that can be used for a variety of purposes. It is true that nowadays it is being used to distribute digital collectibles. These include, for example, unique video moments of sports matches or films, audio recordings of famous artists, digitized art, popular memes, and even messages from social networks.

 

For example, the first tweet of Jack Dorsey, the founder of Twitter, was sold in the form of NFTs for $2.9 million. The Nyan Cat meme brought its creator Chris Torres $590 thousand.

 

It may be difficult at times to understand NFT, but it is gradually becoming a part of our modern life. Who knows, maybe in a couple of years’ time it will become just as common as paying online with your phones.