What is NFT?  A Guide to Understanding Non-Fungi Tokens – Época Negócios

What is NFT? A Guide to Understanding Non-Fungi Tokens – Época Negócios

NFTs (Photo: pikisuperstar / Freepik)

Although they are now “inside”, NFTs have been around since 2014 (Photo: pikisuperstar / Freepik)

You must have heard. NFT. Echo about Non-fungi tokens Growing bigger and bigger: This topic is constantly appearing in the news and attracts the attention of celebrities like Neymar and Justin Bieber, who have already started their NFT projects and collections.

Always very high values ​​also increase curiosity about the subject. After all, what are these valuable digital assets and what are their functions in everyday life?

This text clarifies important questions about NFTs and shows how you can get involved with them.

What is NFT?

NFT stands for Non-Fungible Token. This is a unique digital asset, registered in. BlockchainWith unique identification codes and data that sets it apart from others.

Each token is identifiable by a unique transaction record. Simply put, this means that no two NFTs are alike.

In practice, NFTs represent real-world objects, which may be from the universe of fine arts, music, games, etc. They are bought and sold online, often traded in corrupt currencies.

Although they are now only “in fashion”, NFTs have been around since 2014.

How do NFTs work?

Most NFTs are part of the Ethereum blockchain. But other blockchains can implement their own version of NFTs.

Digital objects create or “create” an NFT that represents solid and intangible objects, including games, graphic arts, GIFs, videos, collectibles, virtual avatar and video game skins, music, and more.

The list of what could be NFT is huge, including a tweet. Twitter co-founder Jack Dorsey sold his first tweet as NFT for over 9 2.9 million, for example.

What are NFTs for?

Basically, NFTs work like collector’s objects, but in digital format. So instead of hanging the original oil painting on the wall, the NFT buyer has the same painting in the form of a digital file.

NFTs also have exclusive property rights. That is, they can have only one owner at a time, and the use of blockchain technology facilitates the transfer of NFTs between owners as well as verification of ownership.

In this way, NFTs give artists and content creators a unique opportunity to monetize their products. One example is that artists will no longer have to rely on galleries or auction houses to sell their art. Instead, the artist can sell it directly to consumers as NFT.

In addition, whenever their art is acquired by a new owner, artists can schedule a royalty to receive a percentage of the sale.

This monetization goes beyond the fine arts. Brands such as Charmin and Taco Bell have auctioned themed NFTs to raise funds for charity, for example. In sports, the NBA Top Shot sold more than $ 500 million at the end of March, and of that, $ 200,000 was raised with the NFT launched by LeBron James.

What is Monkey NFT?

In January 2022, news broke that player Neymar had bought two NFT monkeys for about ً 1.1 million. What is this?

This is an NFT that is part of a collection called “Bored Ape Yacht Club”. This collection contains 10,000 unique digital artworks of “bored monkeys”, created using a random algorithm, each with its own characteristics: colors, fabrics and accessories.

Some of these combinations are more common and some are rare – which makes them more expensive. In addition to the role’s commercial rights, Neymar has access to special events, both physical and digital.

How to buy NFTs?

If you want to start your own collection of NFTs, you need to follow a few steps. First, you need to have a digital wallet that allows you to store NFTs and cryptocurrencies. This also means that you will need to buy cryptocurrencies such as ether to be able to pay for NFT purchases.

It is possible to buy cryptocurrencies using credit cards on platforms such as Coinbase, eToro, Kraken and PayPal.

It is also important to keep in mind that these transactions will incur fees. Most exchanges (cryptocurrency exchanges) charge at least one percent of their transactions when a user buys cryptocurrency.

Provided with cryptocurrencies and knowing how the transaction will take place, the user can then find the NFT of his interest and buy non-fungible tokens.

What are the key platforms for trading NFTs?

Some markets or platforms are already well-known for NFT negotiations, whether buying or selling, specifically to ensure the security of transactions and to keep a wide range of digital assets.

Here are some of the most used platforms:

Open sea
– Rare
– Super rare
– Fiction Bazaar
-.⁇ Foundation⁇ n
– Atomic market
– Engine Marketplace
– Bakery change
– Share
– To know the origin

How does the diagnosis of NFTs work?

To understand how the value of NFTs works, we need to go back to the concept of tokens. There are two types of tokens: fungible and non-fungible. Fungibles are like coins that will always have the same value. The value of a real is always a real, so a dollar note can be exchanged for another real note.

Non-flammable tokens (NFTs) are unique and cannot be exchanged for any other token. They can gain or lose value regardless of the currency used to buy it. Individuality and scarcity add value.

Therefore, as unique and rare as an NFT is, its creator can add value to those who wish to acquire a digital asset.

How to invest in NFTs?

The only direct way to invest in NFTs is to buy on some cryptocurrency exchanges such as Binance and Mercado Bitcoin, as well as OpenSea and SuperRare, which offer options for acquiring NFTs. In this case, the investor will get a return based on the value of his individual assets, depending on the demand of other consumers.

For those who prefer to bet indirectly on the sector, Brazilian brokerages have options. The Trend XP Metaverso Fund, for example, has an index with shares of 30 global companies that are somehow connected to this universe. The second option is the Coin NFT Fund from Vitreo, with a minimum investment of BRL 1,000, an annual operating fee of 0.34%, as well as a performance fee.

Investo also manages the NFTS11 ETF, an index fund listed on B3 that invests in media and entertainment sector tokens and mimics the performance of the MVIS Crypto Media & Entertainment Leaders Index.

* In collaboration with Wesley Santana

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