What is an NFT?

Non-Fungible Tokens – one of major trends in crypto

NFT is short for Non-Fungible Token. These are the next big trend in the cryptocurrency and blockchain universe. NFTs have been around the digital currency and asset markets for some time now, but they broke out into mass awareness when famous artist Beeple sold his digital art piece for a shockingly high 69 million dollars. This artwork was called “Everydays: The First 5000 Days”.

NFT meaning for beginners

So the question remains for most newbies to the cryptocurrency and blockchain world: what is an NFT, and why are they so important?

To begin with, NFTs allow blockchain technology to place an identifying marker on any digital media piece. This marker enables digital artists like musicians and influencers to sell their digital items for money. And buyers know that they are getting an original work as blockchain supports verification of ownership.

Digital media was traditionally difficult to sell and was troubled by piracy and authenticity issues. Now with NFTs, this problem can be solved. Every performer or artist gets an opportunity to earn money by marking their content through NFTs without being affected by piracy or other issues.

If you are hunting for rare NFT project tokens: MEXC offers its users the opportunity to trade in all listed NFTs. Users can buy and sell tokens and derivatives of NFT projects.

The Spread of NFTs in 2020-21

At present, with 2021 coming to an end, NFTs are established as the one of the sub-industries of blockchain technology. Art lovers and memento collectors have been using them to build up their portfolios of rare digital media souvenirs since 2020.

The blockchain and cryptocurrency sectors have been enjoying a solid bull run since 2020. The development (and success) of new blockchain platforms and the growth of decentralized finance (DeFi) protocols have worked as catalysts for the NFTs, which snowballed into the mainstream after being around in the outskirts of blockchain technology for a few years now.

GameFi & NFT

However, the main bulk of activity is emerging in digital art and graphic created for the gaming and virtual and augmented reality platforms. Multiple platforms are launching gaming universes to monetize the sector with the help of NFT and Defi.

These gaming finance projects are popularly known as GamiFi projects.

GamiFi projects are all set to use NFT technology to make their platforms play to earn and create to earn havens for their users. (MEXC usually has GameFi projects listed if you are interested!) The availability of NFTs has led to a global rush of both artists and investors looking to get some stake in some form of digital asset. This has led to the growing significance of the art, sports, fashion, and music industries from a commercialization and economic perspective.

Now, even token drops or new projects launching ICO, IDO, or IEO also involve exclusive offers of custom-designed skins or other digital art to drum up enthusiasm for the tokens. Some of our listed projects do this too! Please stay tuned to see what is coming for M-day and Launchpad.

Future ofNon-Fungible Tokens

However, there are more nuances to NFTs than just allowing artists to earn from their art. Digital tokens are unsettling many industries that have relied on traditional business means. NFTs have put a digital perspective on things in a way that was hard to think of until recently.

With time, NFTs will expand further. Since NFTs can cover anything unique like artwork or image, song or music, or any exchangeable item through a contract, they should increase further in range. The availability and the possibility that NFTs provide for tracking and tracing artwork opens the potential for making money from original artwork. Digital media artists learned that NFTs could allow buyers and investors to trace an artwork’s background, authenticity, and ownership trail.

They do so in a failsafe and secure manner, which has added authenticity to art transactions and made them a lucrative option. Secondary sales and transactions can also be tracked and royalties paid to the artists. The NFTs and their unique blockchain-based structure are a welcome input in an industry that has suffered particularly severely from piracy and lack of protection for copyrighted work.

NFT at MEXC

MEXC is amongst the most reliable exchange platforms where NFT projects list their tokens. Keen on buying some, but still looking for hot news about NFT, GameFi, or Defi? You can find these categories at MEXC Blog. New to blockchain and trading? If you want to know more about MEXC products and crypto trading, visit our Academy to learn how to start trading on MEXC.