In Under 4 minutes
Just this past week, the credit card company Visa bought an NFT for $150,000. Anheuser Busch, the company behind Budlight is also exploring NFTs. NFTs have been blowing up the internet and there’s good reason! So let’s get to the bottom of all of this. This video will answer questions like
What is an NFT?
What makes NFTs interesting? How do NFTs work? How can you buy an NFT today? What does the future hold? Before we jump into the video, please consider subscribing, liking, and sharing this video!
It really helps a small channel like mine continue to grow! Now, What is an NFT? NFT stands for non-fungible token. If an asset is fungible, it means that it is easily interchangeable with another asset of the same type.
For example, one dollar is fungible since you would trade 1 US dollar for another US dollar.
But if you traded your favorite sports card, you’d get a completely different card and you’d probably be disappointed. So, in simple terms, an NFT is a digital representation of a one of a kind asset. The deed to your house or credits in your favorite video game can all be represented as NFTs. So, What makes NFTs interesting? NFTs make it easy to securely own, trade, and issue a digital representation of an asset.
Imagine your Super Bowl ticket being represented as an NFT.
For the Super Bowl host, it would reduce costs, make ticket production simple, and unlock new revenue opportunities. or Super Bowl goers, it becomes easy to safely store tickets as memories, and it’s now easy to sell your tickets as there’s a marketplace for it. Since the common base for NFTs can be a protocol like Ethereum or Solana, you could also use your NFT Super Bowl ticket as collateral for a loan! Now, How do NFTs work?
Most NFTs can only have 1 owner.
The ownership of an NFT is managed by a uniqueID and you can easily prove that you own it by nature of a blockchain serving as a public ledger. Likewise, the creator can also easily prove that he or she made an NFT. When an NFT is created or transferred, code from a smart contract is securely executed and added to the blockchain. Now the question everyone’s been waiting for, how can you buy an NFT today?
Well, in order to buy an NFT, you would first need some Ethereum or Solana. You could buy ethereum or solana on a popular exchange like Coinbase or a DEX like SushiSwap or Uniswap.
You could then setup a wallet using Metamask, an easy to use browser extension. Transfer your crypto to your Metamask Wallet, and head over to an NFT marketplace like OpenSea.io and let the fun begin!
What does the future hold? With companies like Visa, Anheuser Busch, and Nike all getting involved with NFTs, you might feel like you’re late to the game, but we’re incredibly early. NFTs have seen a lot of traction in art and gaming primarily because NFTs have provided a great opportunity for creators to engage with and monetize their audiences.
In the future, special legal documents, the deed to your house, and signatures may all be represented by NFTs! Since NFTs are easy to use, trade, and issue, the possibilities are endless!
Now, that wraps it up for this episode! If you made it here, thank you for watching. I really appreciate it. Please consider subscribing, liking, sharing and tapping the bell icon for my next video. Till next time!
Read More: XRP and Ripple: the SEC lawsuit explained