What Is An NFT?
If you’ve been active on Twitter, you’ve probably seen or heard about non-fungible tokens, or NFTs. But what are these mysterious blockchain tokens, and why are people so interested in them? Let’s take a look at what NFTs are and some of their potential uses.
What is the Blockchain?
NFT’s are digital assets residing on the Blockchain, but what is the Blockchain?
The Blockchain is a distributed ledger technology that records and stores data in an immutable and secure way. It serves as a single source of truth for all participants, which means that no one can alter the data without everyone else knowing about it. With regards to NFT’s, the blockchain displays every transaction on-chain, along with price history and current and previous owners. When you purchase an NFT you are not only buying the Jpeg, but the unique code associated with it. This means that although it is possible for someone to “right-click” save an image of your NFT, they do not own it or have any rights to use it.
What is an NFT?
NFT’s, or Non-Fungible Tokens are digital assets that use blockchain technology to create unique digital ‘fingerprints’ for each token. Unlike traditional cryptocurrencies such as Bitcoin and Ethereum, which are fungible, and therefore designed to be interchangeable. NFTs represent ownership of something specific and can only be used once. This means that when you buy an NFT, it is yours forever. These digital assets can take the form of digital artwork, photography, audio files and more. Recently, NFT collections have started to branch out into gaming, comic books and sports collectibles.
For example, in September 2022 Cool Cats NFT launched our own Cool Comics, starting with “Tepnu and the Water Disaster.” Holders used $MILK to claim digital comics which they could later redeem to obtain a physical version. Along with this, we released exclusive merch and a video animation to help tell the story.
During the 2022 World Cup, Cool Cats and Cool Pets owners had the opportunity to mint Cool Cats FC cards. The Cool Cats FC (“Football Club”) was a collection of 4,000 NFTs created by Cool Cats, Animoca Brands, and OneFootball Labs. The collection gathered the Cool Cats community and football fans globally to celebrate the world’s largest football event.
The most popular NFTs include collectibles and art. Artists and creators can mint unique pieces on the blockchain and then sell them to fans or collectors who want to own their work. But as Cool Cats NFT has demonstrated there are many potential uses for NTFs beyond art and collectibles. Gaming items, virtual real estate, sports memorabilia, tickets, music rights, and even virtual currencies within specific games. The possibilities here are virtually endless!
So How Do I Buy An NFT?
Buying an NFT is relatively straightforward, but it does involve a few steps. The first step is to find the NFT you wish to purchase. You can search through various online marketplaces, or you can use a blockchain explorer such as Etherscan to locate unique tokens.
Once you’ve found the asset you wish to purchase, open an account or “wallet” on a crypto platform or crypto exchange.
How To Open A Crypto Wallet
Opening a crypto wallet is a relatively simple process, and it’s essential if you want to purchase any NFTs. The first step is to choose the platform or exchange you want to use. There are numerous different platforms available, so it’s important to research and compare their features, fees, and customer support before making your decision.
Once you’ve chosen your platform, create an account with them. This will require some basic information including your name, address and contact details. Make sure that you provide accurate information as any discrepancies can delay or even prevent the verification process from taking place. After creating an account some platforms may require additional identity documents such as a driver’s license or passport before they can open your wallet.
Once your identity is verified, you will need to deposit funds into your wallet in order to purchase any NFTs. You can do this by transferring cryptocurrency from another wallet, buying cryptocurrency with traditional currency at an exchange, or by sending money directly from your bank account (depending on the platform).
After depositing funds into your wallet, you have everything set up and ready for purchasing.
Buying NFT’s on the Blockchain
Most marketplaces or exchanges list each asset available with its own unique identifier along with its current price and other important information like its previous owners or price history.
One of the key advantages of using crypto wallets is that they offer much greater security compared to a traditional bank account – all transactions are encrypted within the blockchain ledger which cannot be manipulated without everyone knowing about it. Furthermore, all transactions are permanent and transparent so you can easily view the entire history of each transaction associated with an asset before deciding whether or not to make a purchase.
If you wish to purchase NFT’s make sure the wallet you have chosen is compatible with the Ethereum Blockchain, as this is the network where most NFT’s are bought and sold using Ethereum or ETH, its native currency. Your next stop is an NFT Marketplace.
An NFT Marketplace is a digital platform that allows users to buy and sell Non-Fungible Tokens (NFTs).
One of the benefits of using an NFT marketplace is that it allows buyers access to detailed information about each asset listed such as its current price and its previous owners or price history. This helps users make informed decisions when deciding whether they would like to purchase any tokens. Furthermore all transactions are encrypted within the blockchain ledger which cannot be manipulated without everyone knowing about it ensuring greater security when compared to traditional bank accounts.
In summary, NFT Marketplaces offer users from around the world a simple way of buying and selling Non-Fungible Tokens in a secure environment.
Examples of NFT Marketplaces
OpenSea is one of the most popular and well-known NFT marketplaces. OpenSea offers a wide range of NFTs, such as artwork, collectibles, gaming assets, virtual real estate and even domain names. It also supports a range of cryptocurrency currencies including Ethereum (ETH), Bitcoin (BTC) and Dai (DAI).
Rarible is another leading marketplace for NFTs. Similar to OpenSea, Rarible allows users to buy and sell digital art, collectibles and other digital assets on their platform using cryptocurrencies like ETH or DAI. What makes Rarible unique is that it also allows users to create their own custom NFTs. This means that artists can design their own unique digital assets for others to purchase and collect.
Makers Place is another great option if you’re looking for an online marketplace to buy and sell digital artwork. The platform allows anyone with a creative streak to create and offer up works of art for others to purchase using cryptocurrency like ETH or Bitcoin (BTC).
Cryptovoxels is a popular virtual world that uses blockchain technology to enable users to own parcels of land within this virtual world. Buyers can use Cryptovoxel’s native currency VOXEL or other major cryptocurrencies like ETH or BTC in order to purchase virtual real estate within the game.
SuperRare is another leading platform for buying and selling digital artwork as non-fungible tokens (NFTs). SuperRare focuses on curated artwork created by some of the world’s best digital creators creating one-of-a-kind works that cannot be replicated or counterfeited due to the immutable nature of blockchain technology. SuperRare allows buyers to use Ethereum (ETH) or Dai (DAI) when purchasing art from its platform.
History of NFT’s And Memorable Sales
In 2021, NFTs took the world by storm. Everyone from musicians to athletes to artists were getting involved in the non-fungible token space and selling their own unique digital collectibles.
In March 2021, Twitter CEO Jack Dorsey sold his first tweet as an NFT for $2.9 million. This makes it one of the biggest selling Tweet NFTs to date! The buyer was Sina Estavi, CEO of a blockchain company called Bridge Oracle. He not only purchased the tweet itself but also all associated rights to it. This included copyright and full ownership of the original artwork that came with it.
Another example was legendary basketball player Shaquille O’Neal who had been an avid collector of CryptoKitties since 2018, when he first got into crypto and blockchain technology. He sold his entire collection of 1,200 CryptoKitties for more than $1 million dollars! His collection included rare kitties with names like Big Daddy Cat, Shaq Diesel, and Shaq Daddy Cat.
In February 2021, Beeple, an artist who creates digital art using 3D models and software programs like Cinema 4D and Photoshop. Sold his piece “Where Is My Mind?” for $6.6 million at an auction, making it one of the most expensive NFTs ever sold. The piece was made up of several different scenes from different movies, including Blade Runner 2049, Mad Max Fury Road, Ex Machina, and Tron Legacy.
To learn more about NFTs and Web3, check out Harnessing the Power of NFTs.
About Cool Cats:
Cool Cats is a blue-chip NFT brand with a community spanning the world. What started as a comic character, Blue Cat has now grown into a globally recognized brand of digital collectibles, animated content, comics, games, and merchandise. As a leader in Web3, we strive to be the compelling, authentic spark that inspires innovative products and experiences, while offering storytelling that immerses our community in the World of Cooltopia through the lens of Blue Cat and his friends.