Get to know NFT, the Cryptocurrency Brother who is Popular

Get to know NFT

GOROOT | Get to know NFT – NFT is on the rise. Following the eldest, cryptocurrency, this digital asset nicknamed the non-fungible token (NFT) is now increasingly popular.

In 2020, US celebrity Paris Hilton sold digitally produced images of her pet cat. The image sells for 40 ETH worth of Ethereum, the equivalent of US$17,000 or RP245 million.

Get to know NFT

Get to know NFT

Get to know NFT

Then there’s the Twitter boss, Jack Dorsey, who sold his first tweet as an NFT asset. The tweet, whose ownership certificate has been digitally stored, sold for US$2.5 million or Rp. 35 billion.

In Indonesia, the wave of popularity of NFT is also starting to rise. This is reflected in the behavior of researcher and writer Denny JA’s NFT painting entitled ‘A Portrait of Denny JA – 40 Years in the World of Ideas’ for 27.5 WETH or around Rp 1 billion. Denny sold it through the auction site OpenSea.

So what exactly is NFT? What interesting facts do you need to know? Big Alpha summed it up for you.

1. What is NFT?

Literally, NFT aka non-fungible token is a token that cannot be exchanged. NFT is a digital token that is linked to a blockchain system. Yup, if you hear blockchain, you will definitely remember cryptocurrency.

The working principle of NFT is not much different from cryptocurrency. The difference is, NFT cannot be exchanged but can be traded.

In trading an item, the NFT will act as a certificate of ownership of the item. For now, the item that is widely traded with NFT is a work of art.

2. What can be transacted with NFT?

Many items can be traded with NFT. Even though art is currently the most traded product with NFT.

Every blockchain transaction will be recorded permanently. That way, NFT will provide a way to rate objects online by their owners. For example, an artist attributes NFT to his work. He can put a price on every NFT traded.

3. How to buy and sell NFT

There are several conditions that must be met if you want to make NFT transactions. First, you must have a crypto wallet. Second, determine the cryptocurrency used for the transaction. For information, most NFTs can be traded with Ethereum (ETH).

Transactions can be made on NFT markets such as OpenSean, Mintable, Nifty Gateway, and Rarible. In order to sell, you must upload the content being sold to the NFT marketplace.

In principle, everyone can create their own NFT. As long as you have a crypto wallet, have ETH, and are connected to the NFT market, you can link digital content with NFT.

4. NFT sales volume continues to climb

NFT products are selling well. NFT sales volume in the third quarter of 2021 reached US$10.7 billion or equivalent to Rp152.3 trillion.

Especially in OpenSea, the largest NFT market, sales reached US$3.4 billion or equivalent to Rp48.4 trillion in August 2021 alone. The surge in NFT sales was supported by the rising prices of most cryptocurrencies during the Covid-19 pandemic. As we know, NFT buying and selling transactions use cryptocurrencies, especially Ethereum.

5. New NFT record, Dolce Gabbana digital suit

NFT sales record was just broken by Dolce & Gabbana through digital fashion design. Dolce & Gabbana released the Collezione Genesis collection in collaboration with UNXD, a marketplace specifically for curating digital art.

Well, all collections sold through auction have a total value of 1,885,719 Ether (Ethereum) or almost the equivalent of US $ 5.7 million (Rp 81.2 billion).