What is NFT and How Is It Done? NFT Examples
NFT stands for non-fungible token, which is a unique digital asset that cannot be replicated or exchanged for another of the same kind. NFTs are created and stored on a blockchain, which is a distributed ledger that records transactions and ensures their security and authenticity. NFTs can represent anything from art, music, videos, games, collectibles, and more.
To create an NFT, you need to have a digital file of your work and a platform that supports NFT creation and trading. Some of the most popular platforms are OpenSea, Rarible, SuperRare, and Foundation. Each platform has its own rules and fees for creating and selling NFTs, so you should do some research before choosing one. Generally, you will need to connect your platform account to a cryptocurrency wallet, such as MetaMask or Coinbase Wallet, that holds some amount of Ethereum (ETH), which is the most widely used currency for NFT transactions. Then, you will need to upload your file and provide some metadata, such as title, description, edition number, and price. You will also need to pay a gas fee, which is the cost of executing a transaction on the Ethereum network. The gas fee varies depending on the network congestion and can be quite high at times. Once you pay the fee, your NFT will be minted and added to your wallet and platform account.
To sell or buy an NFT, you need to browse the marketplace of your chosen platform and find the NFT you are interested in. You can either bid on an auction or buy at a fixed price. You will need to pay another gas fee to complete the transaction. The seller will receive the payment in ETH minus any platform fees or royalties. The buyer will receive the NFT in their wallet and platform account. Some platforms also allow you to trade or swap NFTs with other users.
Some examples of NFTs that have gained popularity and value are:
- CryptoPunks: A collection of 10,000 pixel art characters that were among the first NFTs ever created. Each CryptoPunk has its own unique attributes and rarity. The most expensive CryptoPunk sold for $11.8 million in June 2021.
- Beeple's Everydays: A series of digital artworks by Mike Winkelmann, also known as Beeple, that he created every day for 13 years. The first 5,000 artworks were compiled into a single NFT and sold for $69 million in March 2021, making it the most expensive NFT ever sold.
- NBA Top Shot: A platform that allows fans to buy and sell video clips of NBA highlights as NFTs. Each clip is part of a limited edition series and has its own serial number and rarity. The most expensive NBA Top Shot sold for $208,000 in February 2021.
- CryptoKitties: A game that allows users to breed, collect, and trade virtual cats as NFTs. Each CryptoKitty has its own unique appearance and traits that are determined by its genes. The most expensive CryptoKitty sold for $170,000 in December 2017.
- Kings of Leon's When You See Yourself: The first album to be released as an NFT by a major music artist. The album was sold in three different versions: a standard edition that included the digital album and some artwork; a special edition that included the album, artwork, and exclusive audiovisual content; and a golden ticket edition that included the album, artwork, content, and lifetime VIP access to any Kings of Leon concert. The album raised over $2 million in March 2021.