How NFT Auctions Work
NFTs are an asset through blockchain technology, which records transactions and gives buyers proof of ownership and authenticity. This is most popular for digital assets, such as images, GIFs, songs, or videos. NFTs make digital artworks unique and therefore sellable.
On Twitter, developer Jack Dorsey posted an original tweet on his company’s official Twitter account that cost $2 million. Many wondered how one might pay that much for a tweet and why on earth would anyone pay that much for one?.
Both valid questions. How exactly would you get your hands on such a thing? They’re in plain sight for everyone online. It’s a good example of something being referred to as an “NFT”.
To many, an NFT will sound crazy, even foolish. However, they really exist. Sort of. An NFT stands for non-fungible token. Fungible means that something has a standard value such as gold or currency.
It is worth what it is worth; a $20 bill is worth two $10 bills. Non-fungible items are generally works of art or antique furniture. Their value can be determined by how much someone is willing to pay. So an NFT is something you can auction off to get the highest bid.
With an NFT, it’s not a physical item like a sports card or an ancient relic, but usually a piece of art on a large screen or computer.
How Does it Work?
Basically, a computer code uses the “t” to represent the original digital artwork. Since the artwork is digital and on the internet, people buy and sell them using the token. So far, what do you think?
Artists selling their digital artwork as NFTs including images, videos, music, or a combination of all three. One NFT sold for six figures and included an animated meme, a short video clip, and an autographed first tweet from Twitter co-founder Jack Dorsey.
There’s nothing stopping a person from printing out that artwork and hanging it on the wall at home.
A downloadable copy of The Mona Lisa may be useful for displaying or using as a screen saver, but it is not the original. Buying an NFT ensures you own something of value. That’s why NFT’s get tons of attention.
A few years ago, NFT’s became very popular and they have become the new way to collect art since so many artists create digital art now that lives on the Internet. Some might call it crazy, but I don’t think it is stupid either.
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