What is NFT?
By Yuriy Bishko Updated November 11, 2021
NFT monthly volumes in August near $1 billion. Many people still wonder:
- What is NFT?
- Does this technology make sense?
- What NFT projects have grown by tens of thousands of %?
- What to expect from NFT next and how to make money on it?
In this article we will try to answer these questions and additionally consider the top NFT projects.
What is NFT?
NFT (non-fungible tokens) means “a non-replaceable token” or “a unique token”
Simply put, these are virtual tokens that are in blockchain space.
In brief, a blockchain is a database that resides on a large number of computers. It is a decentralized system that means it has no centralized systems, such as servers or providers, in a blockchain system all devices simultaneously store information published in this system. Tokens, in turn, are a record of information within a blockchain chain. Each project is unique, all information about the author, buyer and all transactions is stored in the blockchain space.
In general, NFT is a digital certificate attached to an object.
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There is now a worldwide trend of buying and selling NFT products. With this system you can sell anything: music, video, photos, text and all other digital products. NFT is especially interesting for collectors, gamers, art connoisseurs and just ordinary people who would like to have a unique digital product, such as the first tweet of Twitter founder Jack Dorsey or a song by an artist like Weeknd .
The record was the sale of the painting “Everydays: The First 5000 Days” by artist Mike Winkelmann (known as Beeple). A JPG file, consisting of all the images the artist painted daily for five thousand days, sold for $ 69.3 million.
Does NFT technology make sense?
NFT is likely to have (and already has) some impact on content creation and distribution formats, creative objects, and art objects. Therefore, it is safe to say that NFT will continue to grow and continue to develop in the field of content creation, exchange of unique digital products and digital creativity.
But NFT can be seen not only as part of a collection or something valuable in terms of emotional experience or the ability to boast of a unique acquisition. The ability to resell NFT, embedded in their smart contracts, allows them to be considered as an investment.
Which NFT projects have grown by tens of thousands of %?
Axie Infinity is a blockchain-based trading and combat game that is partially owned and operated by players.
The project has brought its coin holders 70 000% since the beginning of the entry to the exchange. At the moment the price is at its highs and moves on.
Next project is Alice
My Neighbor Alice is a multiplayer builder game, where anyone can buy and own virtual islands, collect and build exciting items and meet new friends. Inspired by successful games such as Animal Crossing, the game combines the best of the two worlds – a fun narrative for regular players who want to enjoy the gameplay experience as well as an ecosystem for players who want to collect and trade Non-Fungible Tokens (NFTs).
Having gone public Alice project has grown by 60,000%, at the moment this figure is about 12,000%.
Another interesting project is TLM
Alien Worlds is an NFT Defi metaverse that simulates economic competition and collaboration between players. This is achieved by incentivizing players to compete for Trilium (TLM), which is required to control competing Decentralised Autonomous Organisations (“Planet DAOs”) and to gain access to additional gameplay.
In the Alien Worlds metaverse, players can acquire NFTs (digital game items) to mine TLM, engage in battles, and complete in-game quests. Depending on their strategy, players may purchase and assemble NFTs that best suit their gameplay. Additionally, players may engage in governance by electing the Councillors of six Planet DAOs, and thereby influence the direction of the game.
The project has grown to its maximum by 5,000%. Now its price has been significantly adjusted, if we compare with other projects, we can say that the coin has not yet fully shown its full potential.
What to expect from NFT next and how to make money on it?
Despite the explosion in NFT sales this summer, Google searches for “NFT” worldwide are still well below their peak in March.
NFT is gaining momentum and updating its price highs despite the fact that the number of people interested in this area has decreased. The market is beginning to recover, more and more new people are coming into the realm of cryptocurrencies. So now is the best time to explore new NFT projects, or projects like TLM, that have not yet reached their full potential.