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What is an NFT?

NFT stands for “Non-Fungible Token”. Something that is “fungible” can be replaced by the same thing of equal value, like money; a dollar has the same value as another dollar. Something that is “Non-Fungible” is innately unique, with none other like it. NFTs can exist as digital art, membership / access tokens, data records, and more. NFTs have a “digital fingerprint” that makes them unique digital entities.

What is so special about NFTs?

NFTs have digital provenance and proof of authenticity! This means any NFT has verified ownership – a digital proof that can’t be fraudulent. Anyone can buy a replica piece of the “Mona Lisa”… but only one authentic “Mona Lisa” can and will ever exist, valued around 900 million dollars! Provenance matters! Blockchain makes provenance and authenticity possible for digital assets.

Furthermore, NFTs empower artists by ensuring secondary sales automatically pay royalties to the creator / artist! This protects the creator’s rights, and rewards creativity in a way not otherwise possible, and brings communities of collectors together in ways never previously possible.

What is a blockchain?

A blockchain acts as an immutable ledger – a record of transactions and data movement that cannot be modified, hidden, or fraudulent. This revolutionary technology protects data, and is trustless; verified from multiple sources before being confirmed on the blockchain. In the context of NFTs, blockchain records the creation, or “minting”, of an NFT, as well as when it is transferred, stored, or permanently “burned” (digitally destroyed). Crypto currencies and NFTs are powered by blockchain technology.

 

How do you store or own NFTs?

A “crypto wallet” is required. Think of it as a digital safe that requires your signature to permit interactions with the blockchain. One of the most popular crypto wallets is called MetaMask. Furthermore, NFTs can be purchased into crypto wallets using cryptocurrencies (and sometimes credit cards) on NFT marketplaces, such as OpenSea, Rarible, Coinbase NFT, and more.

 

What are some examples of famous NFTs?

  • Perhaps the most famous is by NFT artist Mike Winkelmann, aka “Beeple”. Beeple’s “Everydays: The First 5000 Days”, which is a collage of Beeple’s first 5000 consecutive days of making digital art, sold for over $69 million in 2021

  • CryptoPunk #5822 sold for over $23 million in February 2022. CryptoPunks are an iconic collection in the world of NFTs, perhaps leading the “Profile Pic” (PFP) craze in the early NFT days. CryptoPunk #5822’s value has some of the rarer traits in the collection.

  • Bored Ape Yacht Club (BAYC), created by Yuga Labs, is an NFT Collection that grew to a valuation of over 4 billion dollars in just 1 year and is perhaps the most successful brand launch of all history. BAYC holders have exclusive high value access to events and digital experiences. Several prominent celebrity figures own Apes, including Justin Bieber, Eminem, Snoop Dogg, Mark Cuban, Steph Curry, Dez Bryant, Jimmy Fallon, and many others.

 

Where can I learn more?

Our partners at dafco.io have additional education resources on how to Learn, Discover, and Enjoy NFTs and support artists.

copyright © by BlockFrameNFT 2022-23

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