What is an NFT?
What does "NFT" stand for?
In short, NFT stands for non-fungible token. An NFT is an ownership record for a digital asset.
How do NFTs work?
More specifically, an NFT is a unique digital item secured by blockchains and stored in a digital wallet. It has unique metadata (think: an image or a description), and it cannot be copied or substituted. NFTs are used to certify authenticity and immutable proof of ownership. Since each NFT is unique, irreplaceable and distinct from another, they are quite different from traditional cryptocurrency tokens which are like-for-like (or, fungible) with one another. NFT projects can gain or lose value independent of the currency, just like a popular trading card or piece of art. As awareness around NFT art grows, NFT projects are evolving towards projects with utility: long term uses in the metaverse and in the real world.
Why the NFT craze?
Interest in the NFT market has soared recently, becoming a recurring topic in major magazines and newspapers such as Forbes and the New York Times. At first predominantly popular on the Ethereum blockchain (ETH) and NFT marketplaces such as OpenSea, Nifty Gateway, and Rarible, these digital assets have become ubiquitous in Web3, spreading to other blockchains like Solana, Tezos, and Bitcoin via Stacks.
Several catalysts helped speed public interest along, including Jack Dorsey's tokenization and sale of his first Tweet, or Beeple, who became the first artist to inspire auction house Christie's to facilitate NFT sales. With his "Everydays - The First 5000 Days" coming to a close for $69 million, NFTs could no longer be ignored and creators were more and more inspired to start their own NFT collections. By now, you've probably heard of many popular NFT collections including Cryptopunks, Cryptokitties, Megapont, Bored Ape Yacht Club, and countless others. Even popular brands and sports teams are exploring NFTs, with some examples including NBA Top Shot, Tiffany's, and Adidas.
There are many practical applications and use-cases for NFTs including giving the owner access to exclusive merchandise, other digital collectibles, tickets to events, video games, as well as physical assets and real estate. In the past year, the most popular use case for NFTs has been to represent digital artworks and other collectibles like songs, avatars, video clips and GIFs, game items, and more. Importantly, given that NFTs are simply just an ownership record, it's rarely the NFT itself that holds value, but rather its work of art, the communities it unlocks, or the rewards that can be earned through owning it.
About Gamma.io
Gamma is an open marketplace for Bitcoin NFTs and a hub for the world's Web3 social identity. Our marketplace supports NFTs part of the Stacks ecosystem, which enables smart contract functionality for Bitcoin.
We are a home for collectors, creators and investors, where they can explore, collect, showcase, and sell NFTs. While creators are often pushed into contracts that don't serve their best interests by their galleries, producers and auction houses, blockchain technology is a unique opportunity for them. At Gamma, we empower digital artists and creators: they can deploy fully tested, creator-owned, no-code smart contracts in minutes through our creator-first launchpad, and receive royalties for any secondary sales.
If you are a digital art enthusiast or just want to know what all the hype and memes are about, head over to Gamma.io and join us in the NFT artwork adventure!