What are NFTs?

If you are not familiar with NFTs, this term probably means nothing to you right now. NFTs first became very popular in 2021 with multi-million Dollar sales. Find out what the NFT hype is all about and what newcomers need to know here.

What is the meaning of the abbreviation NFT?

Non-fungible tokens (commonly known as NFTs) are unique digital assets linked to the blockchain. NFTs are commonly used to trade digital assets and artwork such as graphics, logos, avatars, and various unique items.

Non-fungible means that they cannot be exchanged with other NFTs. Hence, it means " non-interchangeable memento/symbol ". This means that each NFT you buy is completely unique and cannot be replicated. No two NFTs are alike, which encourages scarcity and can increase the value of an NFT. Pretty much any digital artwork can be sold as an NFT.

Most of the NFTs are hosted on the Ethereum network. I.e. in this case, the cryptocurrency Ethereum is needed to be able to buy these NFTs. In addition, a crypto wallet is also required. For each NFT transaction that takes place on the Ethereum blockchain, a fee is charged. This fee is called a gas.

Why can NFTs be valuable?

A highly sought-after NFT digital artwork is valuable because it is the only one of its kind.

If the level of awareness of an NFT increases and demand thus grows, the value of the NFT also increases. The market therefore decides which NFTs are valuable. Influencing factors here can be rarity, aesthetics, status symbolism, usefulness or historical/cultural significance.

Basically, you can simply follow these four steps to buy your first NFT:

Choose your NFT Wallet: The first thing you need to decide is which NFT wallet you want to use. Since most NFTs use the Ethereum blockchain, most Ethereum wallets will also be suitable for this. For example, the very popular wallet Metamask.

Choose your NFT marketplace: There are several markets that trade NFTs. OpenSea and Binance are just two marketplaces where you can buy NFTs. OpenSea is one of the largest and most popular NFT marketplaces.

Browse the NFT marketplace: Browse the marketplace and select an NFT.

Make a purchase: After you have linked your wallet to your OpenSea account, for example, you can buy your NFT object on the marketplace. Be sure to check the gas price before you buy an NFT. Otherwise, you could lose a lot of money due to non-refundable extra fees.

How to create NFT artwork?

You can create an NFT artwork without knowing how to program. A base file is converted to an NFT through a process called "minting". This can be done on some blockchains, but for the most part Ethereum is used. For example, with a digital graphic, which simply needs to be uploaded and then is directly "minted" on the NFT marketplace.

Do you perhaps have a creative streak and would like to create your own artwork as well as offer it on an NFT marketplace?

Then take a look at our software products in the Graphics & Imaging section and get started with the program of your choice.

On the NFT marketplace of your choice you could then upload your artwork (picture, song or video) and make it available for sale as a NFT.

Do you find the topic of NFT exciting and want to read more about it? Feel free to give us feedback on this blog post.