You've probably already heard of it, and it's been all the rage in the crypto-currency ecosystem and beyond for months now. Stars, artists and even sports leagues have created them. But what exactly is an NFT? Where can you buy them, and above all, what's their purpose? Don't panic, we'll explain it all in this NFT guide!
What is an NFT?
Let's start by defining what an NFT is. The acronym NFT stands for "non fungible token". We don't use the word "fungible" every day, so we thought it was important to clarify the term.
It refers to a good or asset that can be exchanged for another good or asset of the same value. For example, a banknote is fungible because it can be exchanged for another banknote of the same value. A non-fungible asset, on the other hand, cannot be exchanged for anything of equal value, which is the case with an NFT.
NFTs have been in circulation since 2014, but it's only in the last few months that their price and value have literally exploded.
Keep in mind that these are not crypto-currencies, but unique digital assets whose transactions are carried out in crypto-currency and most often with the Ethereum crypto-currency for fast transaction speeds.
At present, they are mainly popular for digital art, but they can also take other forms.
The different uses
The first question you may be asking yourself is what is an NFT used for? And what are the different possible uses?
As explained above, an NFT is unique and can only have one owner, i.e. when you buy an NFT, you buy exclusive ownership of it. However, this does not mean that you have exclusive rights, as it can be viewed by anyone.
The advantage of NFTs is that they allow you to authenticate your creation on the Internet. Today, this technology is used to sell certified creations and to create a digital art market.
It was the latter and the multi-million euro sales that created speculation and a huge stir. Thanks to this volatility, many artists and traders were able to make a profit.
But NFTs are more than just a digital art market. NFTs have no limits, and any digital asset can become an NFT. Here is a non-exhaustive list of the different types of NFT:
- artworks
- tweets
- GIFs
- songs
- items in video games
- patents
- domain names
- photos or videos
Utility NFTs with the example of Ternoa and Sorare
The use of NFTs is not limited to the digital art market and speculative use, as they can also be utilitarian. Ternoa and Sorare are two French companies offering utilitarian NFTs.xemple of Ternoa and Sorare
Specializing in data transmission, Ternoa has decided to use NFTs as a time capsule. So, instead of having a speculative asset, the company allows its customers to store all kinds of data in a time capsule. This is one concrete use of NFTs and blockchain.
![""]("https://coinaute.com/wp-content/uploads/2021/12/0603978874841-web.jpg")
A new French unicorn, Sorare has democratized the use of NFTs and digital currency. The French platform enables users to acquire NFTs bearing the effigy of soccer players. So far, nothing revolutionary, since these are unique, non-fungible digital assets: the definition of an NFT.
However, the advantage is that these NFTs can be played with as Panini cards. What's more, they can increase in value depending on the player's actual performance.
With this system, Sorare has succeeded in bringing reality and NFTs together. These are no longer mere speculative digital assets, but cards that allow you to play and even earn money with the play-to-earn system.
Where and how to buy them?
With the explosion of the phenomenon, a number of sites have sprung up, each offering more or less the same services, but with a few variations.
OpenSea is surely the largest NFT marketplace in terms of trading volume, with a record $3.4 billion worth of transactions in August 2021. Easy to use, you'll find countless NFTs at every price point.
Rarible is also an NFT marketplace, and the challenger to OpenSea. On Rarible, you can create your own NFTs without needing any coding skills. The platform also has its own token for network governance: the RARI.
There are, of course, many other platforms for buying NFTs, such as Mintable, SuperRare, which caters more to artists, or Veve, which offers magnificent NFT collections in partnership with world-famous franchises.
Recently, crypto-currency exchange platforms such as Binance, FTX, Crypto.com and Coinbase have been developing their NFT marketplaces. Coinbase generated a huge buzz for the launch of its NFT marketplace, registering over a million registrations in the first 24 hours.
To buy NFTs, all you need to do is connect your wallet to the platform you wish to buy from. We've put together a short tutorial to help you create a MetaMask wallet, click here to view it.
