NFT stands for non-fungible token, which means “non-interchangeable token”. It means unique, unrepeatable.
All digital tokens are stored in a blockchain. This is a technology for encrypting and storing data on all transactions. Its advantage is that there is no single centre that accumulates all the information recorded in the blocks. The data are simultaneously in many computers, so it is impossible to forge, change or destroy them.
In other words, blockchain is a huge chain. And each block in it contains information that is placed in all the devices of the unified network at once.
A token is a record in one of the blocks. There are many identical tokens. For example, one bitcoin is equivalent to another such bitcoin. A simple example of such equality is banknotes with the same denomination. Each of them can be replaced by another similar one or exchanged for several smaller notes or coins.
NFT, on the other hand, is a unique token. It cannot be replaced by another. Yes, there are tokens of the same value. For example, like paintings that are sold at auction for the same price. But the collectors who bought them are unlikely to take one painting instead of another without looking at it. Each work is unique, and the buyer has chosen it.
How to earn on NFT
A digital illustration, photograph, video, music or text can act as NFT art. This content becomes a distinctive feature of the token that cannot be split, copied, or replaced by another. Most such tokens exist in the Ethereum blockchain, or “ether.”
Who buys NFT and why
NFT is a piece of digital art. It is of interest to collectors just like paintings, unique manuscripts or sculptures. The difference is that this art lives only in the digital space.
It is bought to own a unique creation of a digital artist. And to support a master whose work is liked and seems promising. When buying, the author and the collector specify how the new owner can use the acquired art, for example, to place it as an avatar in social networks, to use it in the design of a website or blog.
The number of NFT sales always increases before the holidays. For example, before the New Year collectors become Father Christmases – they give themselves and artists pleasant emotions.
In the future, the collector can sell the NFT token for the same amount or more expensive. Each such transaction will bring income not only to the owner, but also to the author of the work: the artist at the first sale specifies the interest he intends to receive from future transactions.
Perhaps the acquisition of NFT is a good investment and digital art will only get more expensive from now on. However, no one can predict exactly how the digital art market will develop.
How to create an NFT
Any content can be used as a unique token. For example, photos and videos, cartoons and music, poems, stories or even memes. But digital illustrations, collages, photos and art based on the creations of neural networks are now the most widespread.
A picture that is drawn using traditional means: watercolours, oils, pencils or markers can be turned into NFT. Many artists digitise their work and post it for sale on digital marketplaces.
If you draw on a graphic or ordinary tablet, creating NFT tokens will be even easier – you can skip the digitisation stage.
Now there is a real boom in artificial intelligence and many AI-artists have appeared. They create works only with the help of neural networks. And there are collectors who buy only AI-art.
Important: if you want to sell AI creations, you need to buy a licence that allows commercial use of neural network works.
