NFTs, also known as Non-Fungible Tokens, are rapidly gaining attention and causing paradigm shifts across various industries, from finance to art. These unique digital assets are revolutionizing the way we view ownership and are quickly gaining momentum in recent years.

Read more to know how does NFTs work and where you can buy them.

The cryptocurrency community has a reputation for innovation and trendsetting, as evidenced by the recent surge of non-fungible tokens (NFTs). But what exactly are NFTs? They are unique digital objects that are verified on the blockchain and possess features such as non-interchangeability and uniqueness. NFTs can take many forms, including art, music, and items in blockchain-based video games.

The art world is one area that has seen a surge in NFTs, with digital tokens selling for tens of millions of dollars at major auction houses and beyond. Artists who previously posted their work for free or sold it cheaply can now capitalize on their talent through blockchain technology and NFTs.

Although NFTs gained attention in 2017 with the decentralized application (DApp) CryptoKitties, the market has ballooned by nearly 300% in 2020, reaching over $250 million year-over-year. This growth is reflected in the increasing number of NFT wallets on which transactions occurred, which nearly doubled in 2020 to over 222,000 YoY.

Whether you're a seasoned cryptocurrency veteran or a newcomer, NFTs are likely to catch your attention. Many are drawn to the potential for big sales or the opportunity to diversify their portfolios with digital art. However, it's essential to understand the NFT ecosystem before diving in.

What is the mechanism behind NFTs?

Non-Fungible Tokens (NFTs) differ from other tokens such as DAI and LINK in that they are unique and indivisible. They allow for the ownership and transfer of unique digital data, which is tracked on Ethereum's blockchain. NFTs can represent various types of digital and non-digital assets, including legal documents, signatures, and digital art like videos or music. NFT digital art is an Ethereum-based asset that represents the certificate of ownership and authenticity of the artwork.

Ownership of an NFT is managed through a unique ID and metadata that cannot be replicated by any other token. Smart contracts are used to assign ownership and regulate the transferability of NFTs. When an NFT is generated or minted, smart contracts follow specific standards like ERC-721 to create the unique ID and metadata. The data is stored on the blockchain, which is where NFTs are handled.

Understanding the Difference between Fungible and Non-Fungible Tokens

Crypto tokens like Bitcoin (BTC) and Ether (ETH), along with fiat currencies like the dollar and euro, fall under the category of fungible tokens. This means that each token is interchangeable with any other token of the same value. For instance, you can exchange one ETH for another ETH, or a 100 dollar bill for another 100 dollar bill, without any difference in value or information.

On the other hand, non-fungible tokens (NFTs) are a unique category of crypto tokens that represent rare or unique digital and real-world assets. Unlike fungible tokens, NFTs cannot be exchanged on a 1:1 basis, as each token represents a specific piece of information that is indivisible. NFTs cannot be divided into smaller parts like other crypto assets or fiat currencies.

In summary, NFTs are indivisible crypto assets that represent information and value of unique or rare items. If you want to learn more about NFTs and their implications in the world of blockchain, we recommend watching our School of Block episode on NFTs or exploring the resources we have shared below.

How do NFTs differ from cryptocurrencies and fiat currencies?

NFTs have gained significant value due to their unique features, setting them apart from cryptocurrencies. Unlike cryptocurrencies, NFTs have their individual attributes, such as creator, size, and scarcity, making them irreplaceable with other assets. On the other hand, Bitcoin and fiat currencies are fungible assets, meaning one asset is interchangeable with another of the same value, without any difference. However, some coins or collector's items could be considered as non-fungible assets. Baseball cards are an example of non-fungible items as they are not equal to each other. Many sports organizations, teams, and athletes have also recognized the value of non-fungible tokens, including MLB and NBA.

NFT Use Scenarios

In the world of NFTs, physical assets like artwork and real estate can be converted into digital representations through a process called tokenization. This method makes buying, selling, and trading these tangible goods more efficient while minimizing the risk of fraudulent transactions. By utilizing NFTs, physical assets can gain greater accessibility and liquidity in the digital world.

Various uses of NFTs are:

Stay Ahead of the NFT Game with These Credible Sources

The NFT space is expanding rapidly, and staying updated with the latest developments requires being in the right place with the right people. To help you keep up with the growth of NFTs, we've compiled a list of credible sources, inspiring curators, and authentic projects.

These resources will provide you with valuable insights and knowledge about the world of NFTs. From understanding the technology behind NFTs to exploring the most innovative projects, our list covers a wide range of topics related to NFTs.

While we have done our best to include the most credible sources and projects, we apologize if we have missed any. So, start exploring and stay ahead of the NFT game!

Electronic media

In the fast-paced world of NFTs, it's easy to become overwhelmed with information or fall prey to misinformation. That's why it's crucial to know and rely on credible web media platforms to keep yourself informed and up-to-date with the latest happenings in the NFT space.

By choosing reliable sources, you can filter out the noise and access the most accurate and relevant information on NFTs. These platforms are dedicated to providing their readers with insightful articles, in-depth analyses, and exclusive interviews with leading experts in the NFT space.

From news and reviews to tutorials and guides, these credible web media platforms offer a wealth of resources to help you navigate the world of NFTs with confidence. So, stay informed and make informed decisions by checking out these trustworthy electronic media platforms today.

1. Decrypt's NFT Revolution

Decrypt, a leading publication in the crypto space, has created a dedicated section called NFT Revolution, showcasing its love and passion for NFTs. Whether you're looking for the latest NFT news or step-by-step tutorials, NFT Revolution has everything sorted in one place.

This exclusive section is the perfect resource for anyone interested in exploring the world of NFTs. You'll find a wealth of information, insights, and analyses on the latest trends, emerging artists, and innovative projects in the NFT space.

At NFT Revolution, you'll get an in-depth understanding of the technology behind NFTs, their benefits, and how to get started with your own NFT journey. Stay updated with the latest developments in the NFT space by checking out NFT Revolution on Decrypt today.

2. Larva Labs: Your Go-To Source for NFT Insights

Larva Labs is an NFT project founded by creative technologists who were behind the face of the Android brand. With their extensive knowledge and expertise, they have created a highly informative blog that is the perfect place to stay updated on some of the most interesting NFT projects.

The blog is packed with insights and analyses on the latest NFT trends, artists, and projects. Larva Labs' team of experts regularly update the blog with new content, providing their readers with exclusive access to the latest developments in the NFT space.

Whether you're an NFT enthusiast, collector, or investor, Larva Labs' blog offers valuable insights and information that can help you stay ahead of the curve. So, if you're looking for a go-to source for NFT insights, be sure to check out Larva Labs' informative blog today.

3. ArtBlocks: Your Gateway to the World of Programmable NFTs

ArtBlocks is a unique platform for programmable on-demand NFTs that allows you to experience the fascinating world of NFTs. The platform features a curated list of NFT artists and projects, providing users with an opportunity to explore and engage with the latest developments in the NFT space.

With ArtBlocks, you can discover an array of stunning NFT art pieces that are not only visually appealing but also highly valuable. The platform's programmable on-demand NFTs add a new dimension to the traditional art world, allowing creators to push the boundaries of what's possible with digital art.

Whether you're a seasoned NFT collector or a newcomer to the NFT space, ArtBlocks is the perfect platform to get a first-hand experience of the NFT world. So, be sure to check out the platform's curated list of NFT artists and projects to discover the exciting world of programmable NFTs.

Top NFT Podcasts for Enthusiasts

For those who prefer audio content, NFT podcasts are a great way to stay informed and entertained. Here are some of our top picks.

1. Nifty Show: Every week, best-selling author Joel Comm and marketing technologist Travis Wright invite notable guests from the NFT and blockchain gaming industries to discuss the latest trends and developments in the NFT world.

2. The Defiant: Former Bloomberg news reporter Camila Russo founded The Defiant to cover all things related to DeFi. Along with a newsletter and NFT-focused YouTube channel, The Defiant also offers podcast episodes that delve into the world of NFTs.

3. Modern Finance: Host Kevin Rose invites experts in the field of financial technology to brainstorm and discuss the potential of emerging technologies. With the surge in popularity of NFTs, the podcast has released several episodes that focus specifically on NFTs.

Crypto Influencers in the NFT Space

The world of NFTs is constantly evolving, and staying informed is crucial to understanding its potential. Crypto influencers are a valuable resource for keeping up-to-date with NFT news and developments. Here are four of the most noteworthy influencers in the NFT space:

Roham Gharegozlou: As the founder of DapperLabs and creator of popular NFT games like NBA TopShot and CryptoKitties, Roham Gharegozlou is one of the most successful NFT entrepreneurs. If you want insights into the world of NFTs, Gharegozlou is a must-follow.

6529: This Bitcoin OG's Twitter account has become a go-to source for NFT philosophy and cultural commentary. 6529's Museum and education projects are also worth exploring for a peek into this influencer's mind space.

Zeneca: As a poker player turned NFT dealer, Zeneca built a multi-million dollar NFT collection in just one year. Their daily podcast provides insights on the NFT space, including emerging trends and data analysis.

Erick (Snowfro): The founder of Artblocks, Erick (also known as Snowfro) is an NFT mastermind with valuable insights into the world of NFTs. Following Snowfro is a great way to stay up-to-date on NFT-related news and developments.

NFT Artists Leading the Digital Art Revolution

NFT art and music have taken the world by storm, and if you want to stay ahead of the curve, it’s essential to follow the artists who are driving the NFT revolution. Here are some names that you should definitely check out:

Beeple, also known as Mike Winkelmann, is a well-known American artist who made headlines when his artwork “Everydays: the First 5000 Days” sold for a record-breaking $69,000. His thought-provoking artwork captures the essence of the NFT explosion and is a must-see for anyone interested in the NFT art scene.

Fewocious, is an 18-year-old digital artist who is pushing the boundaries of art. You can follow Fewocious to get a glimpse into the creative mind of a young artist who is redefining the art world.

Justin Blau, also known as 3lau, is a popular electronic music artist who recently released NFTs of one of his most popular albums, which sold for over $11.6 million. His latest NFT work can be found on his NFT page.

Pak, is an enigmatic entity that uses experimental NFT art to redefine participants' perceptions of value, reality, and themselves. Think of Pak as a digital Banksy for the NFT generation, and keep an eye on this agenda setter in the NFT space.

Mad Dog Jones, also known as Michah Dowbak, is an NFT artist from Ontario with a unique style. Mad Dog Jones recently sold an art piece for $4.1 million and is another must-follow artist in the NFT world.

NFT Projects worth Checking Out

RTFKT: RTFKT is a remarkable NFT project that has taken the digital fashion world by storm. Known for designing trendy sneakers and other fashionable digital items, RTFKT was launched in 2020 after working with various fashion and gaming companies for years. If you want to be part of the digital fashion revolution, then check out this project.

Bored Ape Yacht Club: For those interested in apes, the Bored Ape Yacht Club project is a must-see. It features an art collection of 10,000 unique apes, each with its distinct features, on the Ethereum blockchain. By buying one of these apes, you unlock members-only features and become part of the exclusive Bored Ape Yacht Club community.

Meebits: Another exciting NFT project is Meebits, created by Larva Labs. This project is similar to CryptoPunks, but with 20,000 unique 3D characters to choose from. Once you buy a Meebit character, you get full access to its 3D model and can use it to animate your Meebit. Join the world of Meebits and add some creativity to your NFT collection.

Buying and Selling NFTs

When it comes to buying and selling NFTs, there are several things you need to know. NFT marketplaces, such as:

1. OpenSea.io,

2. SuperRare,

3. Foundation.app,

4. Rarible, and Mintable,

These platforms typically operate like auction houses, where you place a bid and wait to see if you win the NFT. However, some sites offer “Buy Now” options, where NFTs can be purchased for a set price.

It's important to keep in mind that each marketplace has its own set of crypto wallet requirements, so you'll need to make sure you have the right wallet for the site you're using. MetaMask is the most widely used crypto wallet, but other options include Formatic, Torus, Coinbase Wallet, and Portis.

There are two ways to sell NFTs:

1. Trading a previously acquired NFT or selling an NFT you've minted. However, fees will be associated with selling your non-fungible token, covering gas fees and marketplace-determined final sale service fees.

2. To sell a previously acquired NFT, make sure it's in your crypto wallet and listed for sale on your preferred marketplace. You can set a “Buy Now” price or specify auction rules, such as the reserve price to sell a minted NFT.

It's worth noting that while the value of your NFT may increase over time, its long-term or even short-term worth cannot be guaranteed. Additionally, royalties may be paid each time your NFT is sold in the future, depending on the service. Buying and selling NFTs involves understanding the requirements of each marketplace, having the right crypto wallet, and being aware of associated fees. Whether you're looking to buy or sell an NFT, it's essential to do your research and stay informed on the market trends.

Understanding the Value of NFTs

Scarcity is a significant factor that determines the value of an NFT, whether it is digital art or a collectible. However, how do monkey JPEGs relate to NFT scarcity? NFTs can be considered expensive or valuable, depending on who you ask, because they bring scarcity to the global digital market. Therefore, owning an NFT is not just about having an image but rather owning a token that always points to a particular digital item stored on the blockchain. Consequently, limiting the supply of a digital item during the minting process of an NFT can inflate its price