Understanding NFTs: How to make money from selling NFTs in Ghana
What are NFTs?
NFT stands for Non-Fungible Token. Fungibility means that an item is replaceable by another identical item or mutually interchangeable one for one.
For instance, a cedi note can be interchanged for another cedi note because they are of the same value.
This implies that anything that is non-fungible cannot be exchanged for another item because it’s unique.
For instance, one piece of art is not equal to another. Both have unique properties.
To further deepen the understanding of NFTs, let’s look at what a token means. A token is basically anything that can be traded or exchanged; it doesn’t have to be real money
Putting everything together, NFTs are tokens that live on the blockchain and represent the ownership of unique items.
What is the concept behind NFTs, the blockchain and why is it useful?
Tracking who owns a digital file is tricky because it can be copied and distributed effortlessly. So how can you prove who’s the original owner when everyone has an identical copy of the file? This is where
NFTs solve this problem. Imagine that you made a piece of digital art, essentially a JPG, on your computer. You can create or mint an NFT out of this.
Technically, NFTs are smart contracts that live on a blockchain. The NFT that represents your art contains a bit of information about it, such as a unique fingerprint of the file, a token name, and a symbol. This token is then stored onto a blockchain, and you, the artist, become the owner. Now you can sell that token by creating a transaction on the blockchain. The blockchain makes sure that this information can never be tampered with. It also allows you to track who’s the current owner of a token and for how much it has been sold in the past.
It’s important to note that the artwork itself is not stored within the NFT or the blockchain. Only its attributes such as the fingerprint or hash of the file, a token name, and symbol, and optionally a link to a file.
Now here’s where NFT’s become weird. When you buy an NFT that represents artwork, you don’t get a physical copy of it. Then it means everyone can download a copy for free. The NFT only represents ownership, and that is recorded in a blockchain so nobody can tamper with it. Some say that NFT’s give you digital bragging rights. And to make it even weirder: while the token owner owns the original artwork, the creator of the NFT retains the copyright and the reproduction rights. So an artist can sell his original artwork as an NFT, but he can still sell prints.
Use cases of NFTs
NFT’s can also be used to sell:
- Concert tickets
- Domain names
- Rare in-game items
- Real estate(houses, lands)
For example, the founder of Twitter sold his first tweet as an NFT. Anyone can see that tweet on his profile, but now, only one person can own it. And that person paid over 2.9 million dollars for it.
At this point, I know you may be wondering exactly how these NFTs get their value and how you can create your own NFT or buy and sell NFTs profitably! Join Tezos Ghana immersive at our immersive cryptocurrency and NFT online meetup experience as we delve into the following:
Outline of Tezos Ghana Cryptocurrency and NFT online meetup
- Introduction to Non-Fungible Tokens(NFTs)
- Crazy NFT collections
- How to create an NFT
- How to buy & sell NFTs
- How to find profitable NFT projects early
Click on this link to register; https://bit.ly/3zoa0rz. It’s absolutely free!
Written by : Tezos Ghana
Website : www.tezosghana.org