Recently founder of Twitter Jack DorseyAnnounced that he has sold his first tweet that read “I’m setting up my tweet” on March 21, 2006.
For nearly 15 years, the tweet was in use without any monetary value, but just a day after entering the virtual auction block, the highest bid reached $ 2.5 million (or 1630.6 ETH – Ethereum cryptocurrency).
Dorsey wrote a tokenized version of his tweet giving the buyer digital property rights, a NFTHe created.
So what is NFT, how is it done?
WHAT IS NFT COIN?
Unchangeable Token (NFT) is also known as digital art or digital collection. Unchangeable Tokens; a tweet, a painting, a picture, a memory, a gif, a football player card, etc. they can represent objects.
Unchangeable tokens are also known as CryptoKitties but this is a complete mess. CryptoKitties is an immutable token marketplace that allows you to digitally own a cat figure. Due to its popularity, it has been used to identify immutable tokens.
An immutable token (NFT) is a unit of data in a digital ledger called a blockchain, where each NFT can represent a unique digital item and is therefore not interchangeable. NFTs can represent digital files such as art, audio, video, and other forms of creative work. While the digital files themselves are infinitely reproducible, the NFTs representing them are tracked on the underlying blockchains and provide proof of ownership to the recipients. Ethereum, Bitcoin Cash, Flow, etc. Each of the common blockchains such as NFT has its own token standards for defining their usage of NFT.
HOW IS NFT MADE?
An immutable token (NFT) is a unit of data stored on a blockchain (a digital ledger) that can represent a unique digital item like art. An NFT is a cryptographic token, but unlike cryptocurrencies such as Bitcoin and many network or service tokens, NFTs are not interchangeable. NFT is created by uploading a file like a work of art to a NFT auction marketplace like KnownOrigin, Rarible or OpenSea. This creates a copy of the file saved in the digital ledger as an NFT that can be purchased and resold in cryptocurrency. While an artist can sell NFT representing a work, the artist can retain the copyright of the work and create more NFT of the same work. The buyer of the NFT does not gain exclusive access to the business, nor does the buyer acquire ownership of the “original” digital file. Anyone uploading any work as NFT does not need to prove that they are the original artist, so there have been many people using that artist’s work for NFT without the permission of the original artist.
Nowadays, it is possible to create your own NFT in minutes via many NFT platforms such as Rarible (Digital Collectibles), Opensea (Digital Marketplace), Nifty Gateway (Digital Art), superRare (Digital Art), Enjin (Gaming), Decentraland (Virtual Reality). It is enough to have a digital wallet for this.
NFT can be used to cause an artificial scarcity of digital creative work by making a single NFT that works with a unique signature. NFTs of artworks are therefore similar to signed items. The unique identity and ownership of an NFT can be verified with the blockchain ledger. NFTs have metadata processed through a cryptographic hash function, an algorithm that calculates a unique 40-digit sequence of letters and numbers. NFTs are also used to create the possibility of asset interoperability across multiple platforms.
It was an early use platform for NFTs due to the ability of blockchain technology to secure the unique signature and ownership of NFTs. Beeple’s digital artworks were sold for US $ 69.3 million in 2021. Christie became an event in the auction industry by selling Beeple’s Everydays: The First 5000 Days for that amount.
NFTs can also be used to represent in-game assets controlled by the user instead of the game developer. The first use of NFTs in the game was carried out by Tokenzone using a centralized approach. NFTs allow assets to be traded on third-party markets without the game developer’s consent.