What is NFT?  A guide to understanding non-fungible tokens – Época Negócios

What is NFT? A guide to understanding non-fungible tokens – Época Negócios

NFTs (Photo: Picisuperstar / Fripic)

Although they are now “in”, NFT has been around since 2014 (Photo: Pikisuperstar / Fripic)

You must have heard NFT. Rumors about Non-fungible token Growing bigger: The issue is constantly in the news and attracts the attention of celebrities like Neymar and Justin Bieber, who have already launched their own NFT projects and collectibles.

Always increase curiosity about very high quality topics. After all, what are these so valuable digital resources and their effectiveness in everyday life?

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

What is NFT?

NFT is an acronym for Non-Fungible Token. It is a unique digital asset, registered BlockchainWith unique identification codes and data that set them apart from others

Each token is identifiable through a unique transaction record. Simply put, this means that no two NFTs are the same.

In practice, NFT represents real-world objects, which may be from the universe of art, music, games, among others. These are bought and sold online, often traded in cryptocurrency.

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 may implement their own version of NFT.

An NFT is created or “coined” from digital objects that represent real and obscure items, including games, graphic art, GIFs, videos, collectibles, virtual avatars, and video game skins, music, and more.

The list of what an NFT can be is huge, even with a tweet. Twitter co-founder Jack Dorsey sold his first tweet as NFT for over $ 2.9 million, for example.

What is NFT for?

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

NFTs also get exclusive property rights. That is, they can only have one owner at a time, and the use of blockchain technology makes it easier to verify ownership, as well as transfer NFT between owners.

As such, NFTs offer artists and content creators a unique opportunity to monetize their products. An example is that artists no longer have to rely on galleries or auction houses to sell their art. Instead, the artist can sell it directly to the consumer as NFT.

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

This monetization also goes beyond art. Brands like Charmin and Taco Bell have held themed NFT auctions for fundraising, for example. In sports, the NBA Top Shot sold more than $ 500 million at the end of March, of which $ 200,000 was raised through the NFT launched by LeBron James.

What is Monkey NFT?

In January 2022, news spread that player Neymar had bought two monkey NFTs for around $ 1.1 million. After all, what is it about?

This is an NFT that is part of a collection called “Bored Ape Yacht Club”. The collection contains 10,000 unique digital artwork “Bor Monkeys”, created by a randomization algorithm, each with its own combination of features: colors, fabrics and accessories.

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

How to buy NFTs?

If you want to start collecting your own NFT, you need to follow a few steps. First, you need to get a digital wallet that lets you store NFT and cryptocurrency. This means that you have to buy cryptocurrencies like Ether to be able to pay for an NFT.

Cryptocurrencies can be purchased using credit cards on platforms such as Coinbase, eToro, Kraken and PayPal.

It is also important to remember that there will be a fee for this transaction. Most exchanges (cryptocurrency exchanges) charge at least one percent of their transactions when a user buys a cryptocurrency.

Equipped with cryptocurrency and knowing how transactions will take place, consumers can then search for NFT of their interest and buy non-fungible tokens.

What are the main platforms for NFT trading?

For NFT negotiations, whether bought or sold, some marketplaces or platforms are already well-known, especially for ensuring the security of transactions and having a wide range of digital assets.

Some of the most widely used platforms are:

The open sea
– Rare
– Super rare
– Myth Market
– Foundation
– The nuclear market
– Engine Marketplace
– Bakery swaps
– Part
– Know the origin

How does the evaluation of NFTs work?

To understand how NFT valuation works, we need to go back to the concept of tokens. There are two types of tokens: fungi and non-fungi. Fungibles are like coins whose value will always remain the same. A riyal is always worth one riyal, so a one dollar note can be replaced by any other original note.

Non-fungible tokens (NFTs) are unique and cannot be replaced by any other token. They can gain or lose value regardless of the currency used to buy it. Adds the value of uniqueness and lack.

Therefore, the more unique and rare an NFT is, the more value its makers can raise for those who want to acquire digital assets.

How to invest in NFT?

The direct way to invest in NFTs is through some marketplaces like Binance and Mercado Bitcoin, such as OpenSea and SuperRare, which offer NFTs options for acquisitions. In this case, the investor will get a return based on the valuation of his personal assets, depending on the needs of other users.

For those who like to bet indirectly on the sector, there are Brazilian brokerage options. Trend XP Metaverso Fund, for example, carries an index with shares of 30 global companies that are somehow connected to this universe. Another option is the Coin NFT Fund, from Vitreo, with a minimum investment of BRL 1,000, a 0.34% operating fee per year and a performance fee.

There is also the NFTS11 ETF, managed by Investo, a B3-listed index fund that invests in media and entertainment sector tokens and replicates the performance of the MVIS Crypto Media & Entertainment Leaders Index.

* In collaboration with Wesley Santana

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