NFTs are hot in the crypto community right now. But what is an NFT? What is the NFT Monkey about? Here you get all the information.
NFTs have become increasingly important on the Internet in recent years. NFTs are not about tangible goods, they just give you a code that refers to the items you purchased. Here in this article, beginners get all the information about tokens, crypto and the importance of NFTs.
What is an NFT? The meaning explained in detail
NFTs are digital certificates of authenticity that are secured with the blockchain data chain and are unique. Whoever has the code is proven to be the sole owner of the NFT in the digital world. Most importantly, when you buy an NFT, you don’t get the objects themselves, but a code that identifies you as the owner.
NFT is the abbreviation for “Non-Fungible Token”, which means “non-fungible token”. The word token is described in the dictionary, among other things, as a “sequence of numbers or letters”, but has a different meaning in the context of the NFTs. To better understand the concept, a ten euro note is a convertible token. It can be replaced by other bills or coins and the value remains the same. However, not all cash coins or notes are interchangeable. Cash coins that are no longer produced and have a certain characteristic are not exchangeable and have their own value. An example is the 1933 “Double Eagle” coin. Its face value was $20, but it sold in June 2021 for $18.9 million. Although this coin is a non-redeemable token, it is not yet considered an NFT.
The world’s first SMS has been sold – for a good cause
NFTs are digital tokens. Since the information about this is stored digitally, it counts as Bitcoin also added to the crypto world. However, Bitcoin is considered a cryptocurrency and is a redeemable token. So what sets NFTs apart is their uniqueness.
NFT: Explanation of terms for better understanding – token, crypto, blockchain
Coins
- Translation: sign, coupon, featuremint
The German word “token” is used in linguistics and in the IT sector to describe a series of letters or numbers that express a uniqueness. Still, the German meaning of the word should not be equated with the English meaning. In the context of NFTs, a token is an asset. The word “coin” can also be translated as “coin” in English and also represents an asset. How do the two differ? Tokens do not have their own blockchain, but “coins” do. Bitcoins, for example, have their own blockchain and thus represent an autonomous network. In addition, “coins” are always considered to be redeemable tokens.
Blockchain
- Translation: chain of blocks
Since the simple translation doesn’t make much sense, here’s the explanation: A blockchain is a decentralized database in which information is stored and made available on various servers (computers that provide resources). A blockchain can be seen as a kind of registry, as new data is added all the time. What is special about this system is that the records are stored as blocks that build on the previous block and contain information such as timestamps and transaction data. The block system allows all transactions to be traced, making data manipulation difficult because all blocks build on each other and the information is linked. Among other things, information about the previous owners is stored.
cryptocurrency
- Translation: Ancient Greek for “hide”, “hide” or “protect”
The terms “cryptos” and “crypto” are often used synonymously with cryptocurrencies. Cryptocurrencies are digital assets traded without central authorities such as banks or authorities – hence the word origin. There are now more than 10,000 cryptocurrencies. They make cashless payments possible, but are even prohibited in some countries. The best-known cryptocurrencies are Bitcoin and Ethereum. The values vary widely. But what has made Bitcoin, for example, so famous is the enormous increase in value. In 2010, a bitcoin could be bought for the equivalent of eight cents. At its all-time high in November 2021, one bitcoin was worth $68,744.03. The value has since fallen again, but is still in the five-digit range.
NFT Monkey: Bored monkeys make millions
The bored monkeys of the “Bored Ape Yacht Club” are doing the rounds on the internet and are now one of the most well-known NFTs.
The digital images can be purchased using Ethereum, a blockchain system with its own cryptocurrency. They go to the highest bidder – so prices can’t be determined exactly. However, the monkeys now cost at least around 250,000 euros. Whoever buys a monkey gets exclusive access to the “Bored Ape Yacht Club”, which also organizes parties – which has generated a lot of criticism from the operators on the Internet. It is not about protecting valuable objects, but about buying prestigious objects. Justin Bieber, Jimmy Falon, Post Malone and Eminem, among others, have acquired NFTs from the club. In total there are about 10,000 monkeys available.
Art, gaming, tweets and more – examples of an NFT
NFTs are not just limited to digital artwork. In-game objects such as rare artifacts or real goods are now sold as NFT as well. Here are some NFT sales in 2021:
- The first tweet from the Twitter founder will arrive in the spring of 2021 Jack Dorsey sold as NFT for 2.5 million euros.
- In the summer, the first source code for the World Wide Web was published by Tim Berners-Lee sold as NFT for 4.9 million euros.
- In December 2021, the world’s first text message from 1992 was auctioned as a digital code for 107,000 euros. Vodafone stated that he wanted to donate the money to a refugee aid organization.
Buy NFT: Which Marketplace Is Reputable?
The largest provider of NFTs is currently OpenSea. An NFT can be purchased through the platform, but you can also create and upload it yourself. The NFT platform works similarly to eBay, but real money transactions are not allowed. An Ethereum wallet must exist for the purchase, so a potential buyer must already have an Ethereum account.