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Welcome to the world of ‘NFTs’

Welcome to the world of ‘NFTs’
By Apoorv Tyagi • Issue #5 • View online
Recently, Digital collectibles known as “NFTs” have exploded in popularity. You’ve probably seen people in your social media feeds talking about NFTs too.

The growing market for NFTs is turning the art, music, gaming and finance worlds upside down.

Today let’s unwrap what is NFT and why suddenly it is becoming the next big thing on the Internet.

We will be running through everything you need to know about them.🙂

What the heck is NFT?
You’re probably familiar with this famous tweet by Jack Dorsey, the billionaire co-founder and CEO of Twitter. He is selling his very first tweet as an NFT.
jack
just setting up my twttr
Despite the fact that this tweet is publicly available as a free digital item to look at whenever anybody wants, as of 6th March, the highest offer for buying this tweet was over $2.5 million🤯

What does “buying” this tweet actually mean?🤔

What you are purchasing is a digital certificate of the tweet, it is unique because it has been signed and verified by the creator and “only one” of this is existing all over the universe and you own that exact piece.
So What exactly is NFT?

NFTs, or Non-Fungible Tokens, are blockchain-based records that uniquely represent pieces of media.

The media can be anything digital. Here, “Non-fungible” more or less means that it’s unique and can’t be replaced with something else. For example, our fiat cash are fungible — trade one for another, and you’ll have exactly the same thing or a different thing with same value.

Ownership of these assets are recorded on a blockchain. NFTs are currently kept in the same blockchain logs as a cryptocurrency called Ethereum.

They’re like a unique collectibles in a forever-open store window that anyone can admire, but only one person (or cryptocurrency wallet, to be exact) can own at any given time.
Why are they becoming popular?
NFTs have received a lot of attention lately because in the last 30 days there has been over $300M generated in NFT sales.💰

But can’t I just download the same digital media for FREE? 🤷‍♂️
Yes, but NFTs are designed to give you something that can’t be copied: ownership of the work (though the artist can still retain the copyright and reproduction rights, just like with physical artwork). To put it in terms of physical art collecting: anyone can buy a Monet print. But only one person can own the original.

It’s important to understand that it’s not just that image or a drawing (which can easily be replicated). It is their existence as a digital object on a blockchain is what makes it unique.

Unlike regular cryptocurrencies, NFTs cannot be directly exchanged with one another. This is because no two NFTs are identical.

Like all assets, supply and demand are the key market drivers for price. Due to the scarce nature of NFTs, people are often ready to pay a lot of money for them.
How To Get Started With NFTs?
There are several marketplaces that have come up around NFTs, which allow people to buy and sell the digital goods. 

MakersPlaceSuperRare, and Rarible are the sites that specialize in digital NFT artwork. 

Grimes, partner of Elon Musk & mother to X Æ A-12 sold NFTs through Nifty Gateway but there are plenty of others.
Final Thoughts
NFTs are still extremely new. As an industry, there has to be a lot of work to be done to improve the technology.
The biggest problems we face boil down to building applications that can support larger numbers of transactions.

We know that NFTs are still relatively inaccessible to mainstream users. Right now, only early adopters and speculators are using blockchain-based platforms. We need to lower the barrier of entry to NFTs.

Centralized applications scale much more easily than decentralized ones, giving us one more hurdle to overcome, but this is a problem we’re actively solving.

***
👋 That’s it for this week. I hope you enjoyed what I included this time and have learnt something new🤞
🍻 Consider subscribing in case you haven’t already and share this newsletter with those you feel can get benefit out of it.
 See you on the Internet next Wednesday!
-Apoorv;

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Apoorv Tyagi

𝗔 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿 𝗮𝘁 𝘁𝗵𝗲 𝗶𝗻𝘁𝗲𝗿𝘀𝗲𝗰𝘁𝗶𝗼𝗻 𝗼𝗳 𝐏𝐬𝐲𝐜𝐡𝐨𝐥𝐨𝐠𝐲, 𝐓𝐞𝐜𝐡 𝗮𝗻𝗱 𝐒𝐨𝐟𝐭𝐰𝐚𝐫𝐞 𝐄𝐧𝐠𝐢𝐧𝐞𝐞𝐫𝐢𝐧𝐠.

𝗥𝗶𝘀𝗲 𝘁𝗼 𝘁𝗵𝗲 𝘁𝗼𝗽 𝟭% 𝘄𝗶𝘁𝗵 𝗶𝗻𝗰𝗿𝗲𝗺𝗲𝗻𝘁𝗮𝗹 𝗴𝗮𝗶𝗻𝘀 𝗶𝗻 𝘆𝗼𝘂𝗿 𝗸𝗻𝗼𝘄𝗹𝗲𝗱𝗴𝗲 𝗲𝘃𝗲𝗿𝘆 𝗺𝗼𝗻𝘁𝗵.

𝗝𝗼𝗶𝗻 𝘂𝘀 𝗮𝗻𝗱 𝟭𝟬𝟬+ 𝗺𝗲𝗺𝗯𝗲𝗿𝘀 𝐭𝐨 𝐢𝐦𝐩𝐫𝐨𝐯𝐞 𝐚𝐬 𝐚 𝐝𝐞𝐯𝐞𝐥𝐨𝐩𝐞𝐫 𝗮𝗻𝗱 𝐭𝐨 𝐠𝐞𝐭 𝐭𝐡𝐞 𝐛𝐞𝐬𝐭 𝐭𝐢𝐩𝐬 𝐚𝐧𝐝 𝐚𝐫𝐭𝐢𝐜𝐥𝐞𝐬 𝗱𝗶𝗿𝗲𝗰𝘁𝗹𝘆 𝘁𝗼 𝘆𝗼𝘂𝗿 𝗶𝗻𝗯𝗼𝘅 📩

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