Updated: May 12
Time to introduce you to the future of web 2.0 … Which is WEB 3.0
Well, basically, the word NFT is the diminutive for Non-Fungible Token. It means it is unique, and cannot be replaced, or we can say it's one of a kind. In order to explain it, I will compare our real world to the virtual world. An NFT in the virtual world, can be art, music, virtual land in the META, concert tickets, pictures, drawings and so on… Well, everything that can old into something digital can be an NFT. On the market, what we see the most are collectible digital art for now. But the possibility are endless.
If we can compare that to what we find in the real world. Being an NFT holder has a digital art, for example, would be like holding one of Picasso's original art. The fact that Picasso is famous and unique make his art valuable. And one painting can be sold to more than a million. A copy of the same painting don't have a lot of value. Same here in the virtual world, an NFT can be sold to more than a million because it's unique and valuable due to the popularity. NFTs became more and more popular since some famous people started to buy NFTs of the most popular collections like the Bored Hape Yatch Club or Crypto punk collection.
What is the blockchain?
Well, Web 3 is based on that technology. The blockchain is the technology that connect two wallets together to be able to trade assets or exchange virtual money (crypto) or NFTs. To be able to trade an NFT, you need to configure yourself a wallet. A lot of wallets exist, but I might say I think Metamask is the best for any beginner right now. So the easy explanation is that the blockchain is a chain of blocks of information. Each block introduce the other one. So if a hacker would like to modify the information in one block, then the blockchain wouldn't be able to function anymore and the modified blocks wouldn't introduce the other blocks and would freeze the exchange and both parties would get notification. That is why the blockchain is the most secure technology and should get all your attention because in the future more and more transactions will be done true the blockchain.
What is a wallet?
Comparing this to our real world. A wallet is like the real wallet you have in your pocket, but a virtual one. And you can put any kind of virtual money in it. In the reality, if I want to give 20 dollars to someone, I just open my wallet and give it to them. In the virtual world, it's the same! And that is only possible with the blockchain technology.
You might say, well, we have banks in the real world that can trade money for us virtually. That is true, but it requires a third party in the exchange, and we call it a transaction that is centralized. With the blockchain technology, it is a transaction that is decentralized and give you full control over the exchange. So it is like trading something in the real world between two persons, but virtually.
Why buy an NFT?
Some might buy them has collectors, some are flipping them to make money. But the main raison has to do with the community you are part of when you buy it. When you buy an NFT, you are giving the possibility to the community to grow and make their way into the metaverse. The good part is when people are investing in communities that have true meaning, it gives this virtual world a real sense and good raison to exist. There are a lot of project out there that are about games and other just purely fun or some have to do with the metaverse, some are about investments or about fashion. Other projects exist, and they are meaningful and are trying to find a way to make the real world a better place. So when you are looking for to invest in NFTs, you might look for the community you will get into and see if it does speak to you personally. Also, you want to see if the community has a future. Find out about the team behind and see what really drives them. And make sure you are connecting with their message.
To conclude, the NFT world is a scary world for some people because it's new, and it will change the world. It's so easy to be trapped into the idea of making a lot of money. And there are a lot of people that are spreading misinformation about NFTs and my only advice in this field, is to never listen to anybody. You should make your own research and take the time to think before investing, and you should always trust your guts.
If you have any questions, please feel free to comment.