Guide to NFTs
What are NFTs?
The words NFT are rarely heard now, but when the market was still bullish with NFTs, you must have heard of NFTs from Ghozali or Irene Zhao! 🖼️
NFT or short for Non-Fungible Tokens are assets that have been tokenized via the blockchain. Assets here can be in the form of photos, paintings, or other unique digital assets that can represent individuals or ownership. NFTs can be traded and exchanged for money, cryptocurrency or other NFTs. Imagine 2 identical NFTs, but the 2 NFTs are not the same, but unique from 2 different blockchains.
The Beginning of NFTs
NFTs were discovered long before they became famous, namely in 2014, introduced by Kevin McKoy. McKoy sold the first NFT “Quantum” on the blockchain (Namecoin) and sold it in 2021. 7 years after the first NFT was created!
For the tech geeks: NFTs are created following the ERC-721 (Ethereum Request for Comment #721) standard which dictates how ownership is transferred, methods for confirming transactions, and how to handle secure transfers. 🔒
Beeple NFT - sold for $69million
The most expensive NFT ever sold was an NFT by Mike Winkelmann or Beeple which was auctioned at Christie's for $69 million. Dubbed the most expensive digital art of its time, this NFT is a compilation of 5,000 digital art works by Beeple.
Uses of NFTs
NFTs can be used to make investing easier. For example, one of the Big 4, Ernst & Young, has developed NFTs for wine investors, where each investor is given an NFT as ownership.
Likewise with other investment tools such as shares or land, NFTs can be used to split large investments into several holdings (fractionalizing assets). In shares, NFTs can also represent the identity of the share owner from the name to the date of the share purchase and sale transaction. NFTs can also help automate the transfer of ownership from one shareholder to another.
What is Xellar?
Xellar is the next generation non-custodial application, integrated into the DeFi world. Download Xellar on the App Store & Play Store. Integrate with Xellar’s cold wallet technology.
