You’ve probably seen the term NFT floating around. Some of you have seen it so much that you may be feeling out of the loop. Or maybe you don’t really care, but then you probably wouldn’t have clicked this article.
Should you care? Simply put, yes. It isn’t some fad or short-lived thread. Just like how iTunes and streaming platforms digitalized the music listening experience, NFTs are digitalizing the art and collectibles world.
We want to keep things simple so you can get a better understanding of what NFTs are. We will soon be diving deeper into all aspects of NFTs to keep you updated on the most exciting drops that are happening with some of your favorite musicians.
NFT stands for Non-Fungible Tokens—which simply means that the token can not be recreated or replaced. “Fungible” = able to be replaced, so “Non-Fungible” = not able to be replaced. This means it is unique.
Fungible example: Dollars and coins can be exchanged for one another, and are worth the same value. In other words, one dollar of one country’s currency can be exchanged for another, they share the same value.
Non-Fungible example: Imagine two similar cars. Even if it’s the same exact car they can’t be interchanged for the exact same value. There are various factors like how old, any wear-and-tear, and if any alterations have been made.
There are various types of NFTs under the main umbrella of the term. Two of the biggest groups include digital art and digital collectibles. Today we are just going to be talking about digital art, specifically what’s happening in the music world.
NFTs use the same blockchain technology that cryptocurrencies do and make digital assets both trackable, verifiable and in most cases, scarce. These are things that have never existed before and are what enable both digital art and digital collectibles to exist.
The actual NFT is a digital token that points to a photo or video. There are other uses, but these are the primary forms.
NFTs are sold primarily through secure marketplaces. The most prominent that exist today include:
- Nifty Gateway: Purchase NFTs using a credit card or cryptocurrencies like Ether. This is unlike most of the other marketplaces that require you to make purchases exclusively in EtheWhile. That’s a simple step, but it’s a huge barrier.
- SuperRare: They only feature 1 of 1’s. It’s heavily curated. The auction format allows owners to accept the top bid at any time, often with a 24 hour countdown to notify collectors about when it will end.
There are more open source platforms where anyone can create their own NFT without curation or approval.
- Rariable: Open platform for anyone to create NFTs without needing to be approved.
- OpenSea: NFT marketplace where you can create NFTs without having to pay transaction costs in ETH.
- Block Party: Emerging NFT platform built on the NFT protocol.
- Makers Place: Bespoke auction house offering unique NFT schemas for…