Last Updated on January 31, 2024 by Ameer Hamza
NFTs are one of the trendiest words on Twitter and today’s blockchain community. Behnoode Foundation plans to establish the first NFT Islamic agency in the Middle East in 2022. This Dubai agency will be called Behnoode Art and aims to bring Islamic and Middle Eastern artworks to the forefront and showcase the beauty of the culture and art.
While some people assume NFTs are also cryptocurrencies, they are not. Despite being based on blockchain technology, NFTs are entirely different. They became widely popular in 2021, but NFTs have always existed. The first NFT was launched in 2014. Yet, the hype has continued to grow.
What are NFTs?
NFT stands for non-fungible token. These assets are unique digital artworks that cannot be replaced or interchanged with another, although they increase in value. For instance, our everyday money and cryptocurrencies like bitcoins and altcoins are fungible. They have the same worth irrespective of whoever holds them and are exchangeable. However, for NFTs, the most critical determinant is the specific token you hold.
NFTs can take the form of pictures, illustrations, videos, gifs or sounds. The value of this asset is completely based on what is dictated by market supply and demand.
How does NFT connect to blockchain?
If NFTs are digitized arts, where does blockchain come in? NFTs are verified through blockchain technology. Creatives and artists who invent NFTs store them in a unique and secure than Turkey’s 2021 tourism revenue. A crypto billionaire bought $69 million digital artwork in 2021 called ‘The First 5000 days’, while CryptoPunk 7804 was sold for as high as about $8 million.
Today, many investors are buying and selling NFTs, and millions of dollars are being expended in the marketplaces. The reasons for this rave are numerous. First, NFTs are scarce and unique. Unlike bitcoin, which can be broken into smaller bits, you can not equate one NFT to another. Also, the demand for NFTs determines their price.
Asides from this, being a purchaser of NFTs also gives you access to exclusive communities, e.g., Discord. You can access premium communities and build your network by holding a badge. NFTs are a form of investment, albeit unusual. Aside from their appeal to art collectors, they can be sold off as an investment.
In conclusion, NFTs are continuing to grow and trend. They have created a platform for artists and creatives today. While some are expensive and worth millions of dollars, newer and cheaper projects are available. Yet, a lot of scepticism still exists about their true value. So, before you go out of your way to purchase NFTs, it is best to research and decide if you want to join the bandwagon.
serial identity through blockchain and convert them into safe assets for sale. Thus, they are sometimes called crypto-arts.
Should you care about NFTs?
As a crypto enthusiast, you may have asked yourself whether you should jump on this bandwagon. As of 2021, NFT was reported to be a $25 billion industry. This valuation is bigger