Asking everyone what is NFT they just answer { Non Fungible Token } and run away. People are recommending to buy NFT's without having knowledge them self and just following the hype.
So what actually is NFT (Non-Fungible Token)?
Like Blockchain has been implemented in Crypto Currency, Similarly Blockchain is also implemented in NFT (Non- Fungible Token).
Here you may wonder whats the meaning of Non Fungible.
Non Fungible means the item which are not interchangeable with each other, Each one of them is unique in its own way and you cannot compare them. It is only one piece in the whole Block chain Network.
So using this NFT 's you can make your own artworks, songs, picture, videos anything which can be converted into digital form into an asset. It give that item an specific token on block chain which is irreplaceable.
Here token used to give an specific item an authentication Certificate and Ownership.
You can create your own NFT's asset and sell them on block-chain platforms like
Eg :- Open Sea.
Explaining NFT with example :-
Imagine having a piece of painting like "Mona Lisa" which is in Museum. So here you can print that picture and display in your home but we all know where original painting lies and who is is real owner. So your printed painting has no value.
Similarly if that Museum take a picture of Original "Mona Lisa" painting and convert it into an digital asset called NFT and Sell it in OpenSea website. So on whole block-chain there is only one original Picture of "Mona Lisa" and it has an value in the market.
By this way you can create your own NFT or Buy NFT's which are rare.
What means by it is not Interchangeable with example :-
It simply means when two items which has different properties so then they have their different value and you cant compare and replace them.
Like if you have painting of "Mona Lisa" and with it you want to but Statue Of Liberty or you want to Compare Mona Lisa with Statue of Liberty which is simply not possible cause both have their own different value in their own fields and not comparable.
What are the benefits of Buying NFT's :-
Benefits if buying - When NFT is bought at it has a certain value, but after some time time the item might get rare or hype may get created, the value of that NFT is increased and by selling at that time you can earn huge profits.
Example :-
Imagine you a bored ape NFT which is one OpenSea cause you liked it and was cheap. You store it in your wallet for some time and an news bust that your item is rare and some artist wanted to buy at any price. That time you can sell you NFT you gain profits.
The people looking for that NFT can see who is owner of that NFT which is you and can offer a good bid to sell.
Selling NFT - When you turn your property in NFT and sold on the Blockchain Platform the users pay bid and the highest bid wins and you get your huge returns. Also after selling you earn a fixed percentage while others trade your NFT to others.
Other Benefits:
Other than buying and selling of NFT. Big NFT companies like Boredape and Cryptopunks are making NFT like an membership card.
So buying their NFTs make you their member and you get rewards and special perks. They have their own road map of future plans which will also happen physically so it means they might invite you to clubs parties who own their NFT.
Interesting part it famous people like Snoop Dogg and others own NFT which make you an member with them and have same circle and when these road maps happen may be you could also meet famous people.
Conclusion :
Recently many of these NFT's has gone viral and even got sold in millions which is insane. No one wants to miss their opportunity. But it comes at huge risk many of NFT platforms are fake. So only buy which are there for long times like CryptoPunks and Boredape. Dont go with hype do your own research before buying anything.
Disclaimer: This is not an buying recommendation and only for education purpose
Kind Regards,
CyberCrypto
Very well explained, NFTs are the future imo