What are NFTs?
NFTs are a special kind of digital asset, in which a token is unique. Because every NFT is unique, then can be used to authenticate ownership of digital assets. These assets can include artworks, recordings, real state, etc.
The fact that NFTs are "non-fungible" means that they cannot be copied, replicated, deleted, or edited. This means that the real owner is the person who owns the token associated with the digital asset.
Why are NFTs important?
Think about NFTs as being a certificate of authenticity for digital assets. These assets include:
NBA virtual trading cards
Virtual real estate in metaverse
NFTs now represent a market of over $338 million in 2020.
NFTs are stored in blockchains, such as Cardano. Anyone interested can track them as they are created, traded, sold, and resold. Since NFTs use blockchain technology, original artists can even receive royalties from subsequent sales.
NFTs on the Cardano blockchain are often referred as "CNFTs".
Cardano is the perfect place to start collecting NFTs. There are three main reasons for this:
No gas fees. Unlike Ethereum, Cardano does not have gas fees. This means that when you purchase an NFT, you don't have to pay hundreds of dollars in fees just to receive said NFT.
The community. Cardano is a top 5 blockchain, which means that there's a sizable community in the space. The CNFT community is known for being welcoming and fun!
Decentralized. Unlike Binance and Solana, Cardano is a real decentralized blockchain. This means that the community owns the blockchain, and no corporation has control over the blockchain, and in turn, the NFT space.
These three reasons are why every day more investors are joning the CNFT space!
Where do you buy CNFTs?
CNFTs can be minted directly from a project when they are sold for the first time. Otherwise, your best bet is to buy in the secondary market.
What can you do with NFTs after you buy them?
Once you own an NFT you can use it as a screen wallpaper, buy virtual real estate, add it to a virtual gallery, and more!
For some people, the appeal comes from buying and selling - much like any other asset.