Hodl Ninjas
  • News
  • Markets
  • Guides
  • NFTs
  • Defi
  • Exchanges
  • Subscribe
Search
bitcoin
Bitcoin (BTC) $ 20,072.00
ethereum
Ethereum (ETH) $ 1,094.70
tether
Tether (USDT) $ 1.00
usd-coin
USD Coin (USDC) $ 1.00
bnb
BNB (BNB) $ 219.37
binance-usd
Binance USD (BUSD) $ 1.00
xrp
XRP (XRP) $ 0.326674
cardano
Cardano (ADA) $ 0.465022
solana
Solana (SOL) $ 32.94
dogecoin
Dogecoin (DOGE) $ 0.068702
polkadot
Polkadot (DOT) $ 6.95
dai
Dai (DAI) $ 1.00
shiba-inu
Shiba Inu (SHIB) $ 0.00001
tron
TRON (TRX) $ 0.06498
leo-token
LEO Token (LEO) $ 5.87
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 20,062.00
avalanche-2
Avalanche (AVAX) $ 17.34
staked-ether
Lido Staked Ether (STETH) $ 1,053.02
matic-network
Polygon (MATIC) $ 0.487151
litecoin
Litecoin (LTC) $ 53.30
ftx-token
FTX (FTT) $ 24.77
okb
OKB (OKB) $ 12.17
crypto-com-chain
Cronos (CRO) $ 0.116617
chainlink
Chainlink (LINK) $ 6.24
stellar
Stellar (XLM) $ 0.108454
near
NEAR Protocol (NEAR) $ 3.34
uniswap
Uniswap (UNI) $ 5.08
cosmos
Cosmos Hub (ATOM) $ 7.50
monero
Monero (XMR) $ 118.79
algorand
Algorand (ALGO) $ 0.302483
ethereum-classic
Ethereum Classic (ETC) $ 15.06
bitcoin-cash
Bitcoin Cash (BCH) $ 104.61
chain-2
Chain (XCN) $ 0.088356
theta-fuel
Theta Fuel (TFUEL) $ 0.048764
vechain
VeChain (VET) $ 0.022825
flow
Flow (FLOW) $ 1.53
apecoin
ApeCoin (APE) $ 4.60
frax
Frax (FRAX) $ 1.00
hedera-hashgraph
Hedera (HBAR) $ 0.063941
the-sandbox
The Sandbox (SAND) $ 1.08
decentraland
Decentraland (MANA) $ 0.869206
tezos
Tezos (XTZ) $ 1.45
internet-computer
Internet Computer (ICP) $ 5.32
filecoin
Filecoin (FIL) $ 5.38
theta-token
Theta Network (THETA) $ 1.21
true-usd
TrueUSD (TUSD) $ 1.00
axie-infinity
Axie Infinity (AXS) $ 14.08
elrond-erd-2
Elrond (EGLD) $ 49.42
bitcoin-sv
Bitcoin SV (BSV) $ 56.72
helium
Helium (HNT) $ 9.47
Hodl Ninjas
  • News
  • Markets
  • Guides
  • NFTs
  • Defi
  • Exchanges
  • Subscribe
Search
Hodl Ninjas
Home NFTs

NFTs: What They Are and How to Use Them

A Beginners Guide to the World of Non-Fungible Tokens

L.R. Borbón by L.R. Borbón
March 23, 2022
in NFTs
0
What are NFTs
Share on FacebookShare on Twitter

$2.9 million. That is how much the founder of Twitter and Square, Jack Dorsey’s, first-ever tweet has recently sold for. A piece of intangible memorabilia that individuals will never be able to physically hold in their hands is now worth millions and one of the most sought-after NFTs on the face of the planet.

You might be asking yourself: who would pay such an outrageous price for a tweet that can easily be screenshot or replicated?

That is where the beauty and the magic of NFTs lie, in their ability to be uniquely held by one single individual. All NFTs exist on blockchains, which are connected across the globe and provide a safe haven to keep your most valuable intangible possessions.

It sounds like the stuff of Alan Turing’s dreams—a world interconnected by millions of individuals spanning every continent on Earth all joined by one single idea. This is what silicon valley is calling,the “internet of all things”.

It all sounds very glorious, but how exactly do NFTs work, and what can they be used for in a practical sense? Let’s explore that.

What Exactly Are NFTs?

Let’s start off with some good old-fashioned vocabulary.

NFT stands for “non-fungible token”. “Fungible” is a word coined by economists to mean an item that can be replaced. For example, the shirt and pants that you are currently wearing are more than likely not entirely one-of-a-kind. If you are like the great majority of people around the world, then your clothes were most likely mass-produced in a factory somewhere in an foreign country, with the intention of being sold to as many people as possible.

This is where NFTs differ from everyday items. They are specifically designed to be one-of-a-kind. Think Leonardo Davinci’s Mona Lisa or Michaelangelo’s Sistine Chapel. Sure, people can certainly take photos of them and reproduce them all around the world. But nothing will ever compare to possessing the original artwork.

This is the same principle that allows NFTs to be so incredibly valuable. Whether it’s the original Nyan Cat gif or Jack Dorsey’s first tweet, the NFT is the original. It cannot be replaced, or is “non-fungible”.

NFT Examples

Tokens Explained

What about the “T” in NFT? That stands for “token”, or a piece of information that describes a transaction, specifically in this case a financial transaction.

For example,

You are at home, getting ready for the big game, right before your buddies from work come over. You decide that you want to order a few boxes of pizza. You fire up your smartphone, launch the Pizza Hut application, order everything from hot wings to double-meat.

When this happens, Pizza hut communicates with your bank and essentially asks if you have enough funds to purchase your pizza. Your bank, goes through every one of your transactions and responds back to Pizza Hut and says, “Hey, it looks like Charlie has enough funds to purchase the hot wings.”

The money for your pizza is then transferred over to Pizza hut’s bank which turns around and does the same type of calculation of transactions to realize they are $100 richer because of your pizza and hot wings.

This is where the blockchain comes into play, they essentially cut out the middle man, no more banks, just millions of connected computers vouching for your tokens.

More and More People Are Using NFTs

This may come as no surprise to you, but a large majority of tech companies and multinationals are finding clever ways to utilize blockchain technology and NFTs.

From ordering your groceries and then paying for them through your crypto wallet, all the way to making your first purchase of an electric vehicle at Tesla. Every day more and more companies are incorporating this new type of technology. Not simply because it is novel, but because it simplifies the entire financial transactional process.

Are NFTs and Blockchain the Future?

By now, you must have a fairly solid understanding of NFTs and what it means for the future of shopping and owning intangible items. As the human need for survival diminishes and our basic needs are met more and more every day—we are turning to these innovative ways of owning unique pieces of art.

From Grimes selling their music for $6 million to the NBA auctioning off the best video highlights in basketball history for a whopping $230 million. To you, my dear reader going to Whole Foods to pay for your weekly matcha using Bitcoin and your phone to pay for it.

These inventions are the way of the future and as more companies integrate them into their everyday usage. Before you know it, even your kids will be paying for their after-school popsicles from the ice cream truck using Ethereum.

ShareTweetPin
Previous Post

Can You Cancel an Unconfirmed Bitcoin Transaction?

Next Post

Tips for Trading Crypto in a Correction

L.R. Borbón

L.R. Borbón

L.R. has worked for an international investment firm as a wealth manager and investment advisor, and launched his own NFT consulting business for the entertainment industry in 2021. He covers a wide variety of crypto and NFT topics for HODL Ninjas.

Related Articles

What STEPN Can Learn from Axie Infinity
Markets

What STEPN Learns from Axie Infinity’s Mistakes May Determine if Game is Sustainable

June 21, 2022
Stepn Move to Earn Project Overview
Metaverse

StepN’s ‘Move-to-Earn’ App is Precision-Engineered for Crypto: What You Should Know

June 7, 2022
Phygital Trend in NFT
Blockchain

What are Phygital NFT’s and How Will this Trend Evolve in the Near Future?

May 24, 2022
High Growth NFT Categories for 2022
News

What NFT Categories are Set to Go Ape in 2022?

May 16, 2022
Next Post
Tips for Trading Crypto During a Correction

Tips for Trading Crypto in a Correction

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Trending Articles

  • High Growth NFT Categories for 2022

    What NFT Categories are Set to Go Ape in 2022?

    0 shares
    Share 0 Tweet 0
  • Satoshi Island: A Real World Crypto Paradise

    0 shares
    Share 0 Tweet 0
  • 5 Books That Will Change How You Think About Crypto Innovation

    0 shares
    Share 0 Tweet 0
  • FTX Enters the Equities Trading Market with FTX Stocks

    0 shares
    Share 0 Tweet 0
  • Nike Is Secretly Buying NFT Domains: Nike Metaverse?

    0 shares
    Share 0 Tweet 0
bitcoinBitcoin
$ 20,072.00
$ 20,072.00
1.09%
ethereumEthereum
$ 1,094.70
$ 1,094.70
4.72%
tetherTether
$ 1.00
$ 1.00
0.18%
solanaSolana
$ 32.94
$ 32.94
7.21%
cardanoCardano
$ 0.465022
$ 0.465022
1.58%
polkadotPolkadot
$ 6.95
$ 6.95
4.21%

Become a Hodl Ninja.

Stay on top of market trends, find exciting new projects, hold on for dear life.

johnsmith@example.com
© 2021 Hodl Ninjas – A BettorView Brand.
No Result
View All Result
  • News
  • Markets
  • Guides
  • NFTs
  • Defi
  • Exchanges
  • Subscribe

© 2021 Hodl Ninjas - A BettorView Brand.

Subscribe to Hodl Ninjas

Get the latest news in crypto and be the first to hear about exciting new projects.

Enter your email address

No thanks, I’m not interested.

Search
$ USD
  • $ USD
  • € EUR
  • ₹ INR
0
Previous 25
Next 25
#CoinPriceMarketcapVolume (24h)SupplyChange (24H)Price Graph (7D)
Previous 25
Next 25