Dillon Bhatt, Head of International Business Development, Millwood Kane International, shares with PEAKLIFE what NFTs entail and what its buzz is all about.
NFTs – (Non-Fungible Tokens) are rapidly gaining prominence in today’s digital age. One might come across the term while aimlessly scrolling through social media or actively engaging with like-minded digital adopters and investors. However, to a layperson, the question remains – what exactly is an NFT?
NFT is a unique data block stored on a decentralised blockchain (digital ledger). To simplify this further, it refers to a digital code that can’t be replaced or interchanged with anything else and represents ownership over a particular item in a digital format.
NFTs are most commonly found on the Ethereum, Polygon, and Solana blockchains. The blockchain stores information about a specific topic, ranging from arts, music, sports, events, digital items – and anything and everything in between. The transfer of an NFT only happens when the ledger approves a transaction and is verified through the blockchain. NFT’s are designed so that their ownership cannot be duplicated.
In an age where millennials and Gen-Zs are passionate about investing in alternative spaces and new technologies such as cryptocurrency and NFT’s, it becomes harder to stay out of the community. The NFT market is still a new space, and whilst it is unregulated, there are many reasons people may want to get into NFTs. For the time being, it primarily represents being a part of an ever-growing and highly innovative community, learning about this evolving space, and trying to make a profit. There has been immense hype around NFTs, and showing you are an early adopter of new technologies can elevate social status amongst peers.
HOW TO BEST PURCHASE NFTS?
Navigating the NFT market could be confusing for most newcomers. While there are multiple ways to buy an NFT, the easier way could be to purchase through an exchange. One can also mint an NFT through a project or be issued an NFT when purchasing a physical product.
Purchasing an NFT through an exchange requires a few easy steps: Firstly, one needs to open a wallet – a common Ethereum based wallet in metamask. Then you would need to transfer funds from an exchange to your metamask wallet. Then connect your wallet to an Ethereum NFT marketplace. The most well-known marketplace for NFTs is OpenSea. After that, one must check the gas (transaction) fees and then purchase your NFTs from the marketplace and store them in your wallet.
Some of the most famous artwork compromising NFTs include Cyberpunkz and the Bored Ape Yacht Club. Another exciting project is the Private Jet Pyjama Party, which features owls on private jets as artwork. This project was designed by “The Artist”, who has collaborated with pop culture, and fashion icons like Snoop Dogg, Palace, The Rolling Stones, LVMH, and Metallica, to name a few.
Additionally, the first tweet ever posted by the co-founder of Twitter, Jack Dorsey, was turned into an NFT and was auctioned for $2.9 million!
A rather exciting use case includes Adresta AG, a highly innovative start-up based in Zurich, Switzerland. They are using NFTs with real utility as a groundbreaking solution for the luxury goods industry while allowing brands and individuals to prove ownership, authenticate and track the provenance of high valued items, such as luxury watches, jewellery, and handbags.
NFTs have already blown up as the new ‘in-trend’, with countless individuals and companies selling NFTs or buying them as collectors.
Whilst we tend to hear about the rare scenarios where people make millions of dollars buying a jpg, the risks are plenty. However, the future of NFTs does seem interesting to observe. There are plenty of opportunities for creators and collectors alike.
Disclaimer: The article is authored by Dillon Bhatt, Head of International Business Development, Millwood Kane International. The views and opinions expressed in this article are those of the author’s and do not represent those of PEAKLIFE.
