In this Blog Post, I would like to introduce you to terms like NFT and Metaverse in layman's language.
We would cover this topic in a type of QnA so that it is easy to understand.
So Let's begin...
What is NFT?
You go to a bakery or a food stall to have breakfast. You pay the money to the stall owner who gives you a plastic coupon/token as seen in the below image. You take this to the kitchen outlet, give it to the chef in exchange for your meal. So here the token is the medium of exchange finally but you have bought token using money.
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| Tiffin center with toke system |
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| Plastic tokens for meal |
Assume that instead of using these plastic tokens for your meal, you have put them in your wallet and went back home. Now after a few days, you have come to the same stall to have breakfast with the old unused token. That time 1 plate Poha was 50 Rs say, now Poha is 100 Rs per plate. You use the old token to buy Poha so you get a 50 Rs benefit. It's the same thing with NFTs (Non-Fungible Tokens). The reason they are called non-fungible is that with cash you can buy a meal at any place but not with that token. Token provides the ownership. Another non-fungible token example is Movie Ticket. You cannot watch any movie with the ticket you have and it provides ownership that it's your ticket.
How is NFT useful in Real Life?
Painters, Digital artists, Music creators, etc can create an NFT for their work and sell it.
This way you have an identity for your original work. For example, no one could copy-paste painting online and say it's his/her because you have created NFT for it. NFT is a digital Id that you could create for your work. In the later sections of this blog, I will let you know how could you create an NFT for your work and earn by selling it.
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| Sketch Art |
You can create an NFT for this as well.
Digital Art
Sketch Art
Photographic
Music
Videos
Why there is a craze for NFTs? and is it the next big thing like Youtube?
You know how youtube, facebook, whatsapp and instagram earn, they engage people in doing something and earn money through advertisement from companies, selling your basic data to companies
This was a hit due to internet boom but nowadays it's saturated.
We can see this in youtubers' earnings.
Now you have to have sufficient subscribers and watch time in order to get the channel monetized. Also the companies are directly approaching the youtubers to prmote the product in their video.
NFT in general is much creator centric. The creators earn good money with the quality work.
How does NFT work? Who can earn money using NFT?
NFT as said earlier is Non Fungible Token. In case of the tiffin center if you remember, the tiffin center owner created token (NFT) for his product Poha (Digital Art) and sold that token (NFT) to the buyer (you) since you liked his Poha (Digital Art). You can eat the Poha (keep the Digital Art with you) or resell the token to someone at higher price to some other buyer.
So, in the NFT world, there would be creators and collectors.
Example- You have made a painting and created an NFT and put a price of 100 $, now your friend buys it from you at 100 $ and sells to another friend at 120 $, he earns 20 $.
This way your work reaches out to many people as they are not only intersted to buy but also resell.
How to create an NFT?
There are multiple international platforms like
Foundation
OpenSea
and Indian platforms like
Wazir X NFT
where you can create an account and pay a gas fee to upload your work to sell.
do note that the gas fee has to be paid in crypto currency
Do check out Indian NFT Exchange platform
Happy Winter!
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