A token is the equivalent of security within the digital world. Many tokens are interchangeable, like $100 notes. They can be utilized as currency.

There are also half-interchangeable tokens. They are similar to each other but have their own unique feature. An example is cinema tickets. Their price is similar, but the seats within the cinema are indicated differently.

Another type of token is non-interchangeable tokens or NFTs.

In broader terms, NFT is a technology that allows you to secure ownership of any digital art object: digital art, a music album, a tweet with good jokes, virtual cats, animated stickers, your own game universes, domains, digital land and real estate for large sums of money. That said, each NFT token is unique. It can’t be reproduced.

By the way, the last record sale of NFT tokens was in March 2021. At the moment, the NFT-linked JPG file of artist Mike Winkelmann, Beeple’s On a regular basis: The First 5000 Days, sold for 69.3 million.

How did it all start?

In 2014, the world’s first non-interchangeable token was created by artist Kevin McCoy collectively with programmer Anil Dash. It was a unique and indivisible coin that could not be replicated.

Kevin McCoy tied his animated Quantum artwork to NFT and sold it in 2021 for $1.4m at a Sotheby’s auction.

In 2017, the CryptoPunks project emerged.

CryptoPunks are one of many first examples of ‘non-interchangeable tokens’ in Ethereum. CryptoPunks was the inspiration for the ERC-721 standard. It’s the one that helps most digital artwork and acquireables.

In truth, every graphic image of a face was linked to a chunk of computer code within the blockchain platform. That’s, it had a unique token where information concerning the owner of the image was stored. And while anybody could download the picture, the owner was the particular person whose Ethereum wallet was listed within the image NFT.

You might ask: what’s the level of owning an image that anyone can download from the Internet, print or ship to anybody? You’ll be able to understand this by looking at artworks in museums.

Anyone should purchase a reproduction of «Gioconda» and hang it of their room. However there is an original which is kept in the Louvre. It has an owner. And the more common the painting, the more of its replicas are created, the more typically it is replicated, and the higher the worth of the original. And the more the owner wins.

By the way, the worth of this particular image ranges from 850 to 2.5 billion U.S. dollars. In this case, the insured worth, according to records within the registers of the Louvre, is a hundred million euros. Not so much?

The situation is just like NFT tokens. Digital and virtual objects can also be valuable, rare and trendy. They could well become a collector’s item and a terrific investment. The same applies to gaming: gamers can accumulate virtual artefacts from completely different games and trade them for something valuable, too.

Who sells and buys NFTs?

Anybody can sell and purchase digital artwork and other objects. However when the hype started, and the demand for NFT tokens elevated, big players — world-well-known galleries, public sale houses, production companies and individual museums — stepped in to buy and sell.

How do I buy someone else’s work with NFT or tokenize my own?

First, you could register a wallet with ETN (Ethereum) currency on any of the crypto exchanges Binance, Coinbase, BitPanda and others. They will let you alternate regular cash for cryptocurrency. Newcomers are usually advised to use the Coinbase wallet for security reasons. Once it’s set up with two-step verification, you can exchange local money for Ethereum and make purchases.

To tokenize the work, you need to use the main marketplaces Rarible or OpenSea, NiftyGateway or Foundation. Every of the marketplaces has detailed instructions on find out how to put an NFT token up for sale or buy ownership. By the way, you possibly can’t do without registering a wallet here as well because the marketplaces charge a commission on sales.

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