What is NFT? NFT Definition
NFTs or non-fungible tokens are currently turning the spheres of sport, art, music, and finance upside down. The hype around them is unbelievable: NFT art pieces by Beeple have sold for millions of dollars and continue to capture audiences.
But what is NFT? We’ll try to give the NFT definition using basic terms. An NFT is a type of code based on blockchain that represents a virtual asset. The adjective ‘non-fungible’ means the asset is unique and can’t be replaced or traded for another one of its kind. Each NFT represents a different value, so they can’t be traded, for example, like you can trade a Bitcoin for another Bitcoin.
These days, a lot of progress is expected through the creation of generative NFTs and especially AI generative NFTs, which many believe will outperform artist-made NFTs and become the new genre.
From the NFT definition, we can see that NFTs can take any form, from a piece of music to a designer-made image. Practically all NFTs are built on Ethereum blockchain in compliance with ERC-721 or ERC-1155 token standards and coded into smart contracts.
Popular Types of NFT
NFTs are versatile and continue to integrate into all cultural trends. They aren’t limited only to digital images or video games. All in all, there are nearly nine different types of NFT, but not all of them have become mainstream yet; and more types are created all the time!
Unlike typical digital media, such NFTs can’t be replicated or stolen. The image or other media representation of an NFT can be shared on social media, but there is only one person who retains ownership of the NFT – the buyer.
So, there is no possibility that any of the types of NFT can be right-clicked and saved. Even if someone saves the image of an NFT, they do not actually have (or own) the NFT itself. This is also proved by memes popular in crypto art circles, which challenge those who are skeptical of the value of NFTs and claim they are worthless because of the downloading possibility.
What is NFT Art?
Now that we know what NFTs are, what is NFT art? As the most widely spread type, NFT art is everything from simplified and abstract virtual images to very detailed digital canvases. Today, the first places on top lists of NFts are taken by art pieces.
For example, the most expensive NFT sold was the image by the famous Beeple called ‘Everyday’s: the first 5000 days’. It was bought for $69 million.
But what does NFT art mean for the world? Is it simply something for wealthy art collectors? First of all, it is an opportunity for young and promising artists to monetize their hobby in a rather generous way and build their own brands.
Just look at designers like Beeple (real name Mike Winkelmann) and Mattdesl – every next piece from their NFT collections sells faster than hotcakes.
The same is true for video NFTs and GIFs – many moving pictures with strong ideas and catchy designs like in the video NFT named ‘Crossroad’ become not only bestsellers but a part of the cultural heritage.
What is NFT Game?
It is quite a fresh trend to play video games for earning cryptocurrency, and that is how NFT games began. Still, it would be better to clarify ‘what is NFT game’ and ‘what does NFT game mean?’
Game companies do not sell whole games as NFTs. Instead, they offer separate game content, such as characters, for sale. In this case, an NFT game is a chance to get more profit in the cryptocurrency world.
In fact, according to news reports, a 22-year-old player recently bought two houses with his winnings from playing the Axie Infinity game incorporating NFTs!
One of the most famous companies embracing advances in the video NFT sphere and adding actual NFTs in their games is Ubisoft. However, many experts doubt if this trend will continue in the long term.
What is NFT Music?
What does NFT music mean? Like with art and video gaming, NFT music is a digital collectible stored on the blockchain and secured so that there can be only one holder of ownership.
Virtual pieces of music acting as assets are common, too. If we compare the traditional music industry with the one in the NFT sphere, we can certainly see how rapidly songs can become hits right now.
While music was a fungible good for a long time and was spread through physical records or CDs or digitally through the web, today it is clear that every NFT music piece is unique and can’t be traded for a similar one, so this adds value to the piece.
In addition, these days musicians can own the entire revenues their songs generate by selling their music through an NFT marketplace platform. This is a huge contrast to the old traditional method! But not just this – NFT music is also opening ways for musicians to get more opportunities for collaboration.
The world of finance has grown over the past ten years to include cryptocurrency, and now we also have NFTs. There are chances that NFTs will remain popular and motivate even more people to create artwork.
Going beyond the basic NFT definition, we can see how versatile the sphere can be and how well art combines with technology. There is no doubt that NFTs add a new meaning to art.
If you need to find more information to dive deeper into the topic of NFTs, make sure to check out the TopNFTCollections.com website. There, you can see the best collection ratings, their stock price, marketprice, volumes, and more.
You can make this tool work for you by tracking prices for your favorite types of NFT, see what marketplaces allow buying them, and actually buy some to join this hot new trend.
We hope that this article answered your question ‘What is NFT?’ and was useful to read.