Thread by @MakadiaHarsh

NFT trading value surged to $10.67 billion in the 3rd quarter of 2021.

The world's most expensive NFT got sold at $69 million.

Here is how I would explain NFT to 5 years old

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NFT means non-fungible-token.

But first, let's find out the difference between fungible and non-fungible.

Fungible goods are items that are interchangeable because they are identical to each other for practical purposes.

For example, If I take a $100 note from my friend and later while returning I give him 10 notes of $10 it's the same.

1 $100 note = 10 x $10 notes

US dollar is fungible — which means it can be exchanged for other currencies

I can give INR 7500 instead of $100

It's the same.

While non-fungible-token is completely opposite to it.

Let's consider the Mona Lisa painting by Italian artist Leonardo da Vinci.

It's one of its kind and unique.

Every unique thing in this world is non-fungible, It cannot be replaced.

Another good example is your birth certificate, it's non-fungible, making it unique and one of a kind.

NFT is a digital asset programmed on this Ethereum blockchain network. It is real-world objects like art, music, in-game items, and videos.

How do NFTs actually work?

NFT marketplaces work on Ethereum smart contracts.

There's one process called minting which allows you to upload your art or picture on the blockchain network.

It's as simple as uploading your video on YouTube or Instagram.

Just drag and drop the asset into the wallet that you are using.

It will create the NFT metadata that will be permanently attached to that asset on the blockchain.

How Much Does NFT Minting Cost?

The cost of minting, or creating, non-fungible tokens can fall into range anything from under $1 to over $1,000

Now that we have the digital asset uploaded and hold the unqiene license for it.

How to make and sell an NFT?

1. You'll need some cryptocurrency ( Ethereum )

2. Create a digital wallet

3. Add money to that wallet

4. Connect that wallet to the NFT Platform

5. Upload your file

6. Set Auction Bid

7. Describe your NFT

8. Pay the fees

It's more or less similar to listing your product on amazon for sale and if someone purchases it,

You get the money and pay the fees to the amazon platform.

But in the case of NFT all your art is unique, unlike amazon products where it may be a duplicate product.

You can buy and sell NFT at any point in time similar to how we purchase the stocks and sell them when the price is high/low.

NFT price depends on

1. Rarity
2. Utility
3. Tangibility

When someone buys or sells NFT you right now get Ethereum in return.

1 Ether equals 3,565.66 United States Dollar

Which is the best NFT marketplace for buying and selling NFT?

Discover, collect, and sell extraordinary NFTs at opensea.io

3 reasons why you should know about NFT

1. Blockchain is the evolution of the Internet

2. NFT market is growing exponentially

3. Makes payment easy

Last but not the least, Is NFT different from cryptocurrencies?

Absolutely yes, NTF is one of its kind and unique piece

While each cryptocurrency is equal and interchangeable

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