NFTs are currently trending in the crypto community. But what is an NFT? What is the NFT Monkey? Here you get all the information.
NFTs have become more and more important on the web in recent years. NFTs aren’t about tangible goods, they just give you a code that references the items you’ve 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 turns out to be the sole owner of the NFT in the digital world. The important thing is that when you buy an NFT, you don’t get the items themselves, but a code that identifies you as the owner.
NFT is the abbreviation of “Non-Fungible Token”, which means “non-tradable token”. The word token is described in the dictionary as a “sequence of numbers or letters”, among other things, but has a different meaning in the context of NFTs. To better understand the concept: A ten euro note is an exchangeable token. It can be replaced by other banknotes or coins and the value remains the same. However, not all coins or bills are interchangeable. Coins that are no longer produced and have a certain characteristic are not interchangeable and have their own value. An example would be 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-tradable 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 it is stored digitally, it counts as Bitcoin also added to the crypto world. However, Bitcoin is considered a cryptocurrency and is a tradable token. What sets NFTs apart is their uniqueness.
NFT: Explanation of terms for better understanding – token, crypto, blockchain
- Translation: token, coupon, characteristicpiece of money
The German word “token” is used in linguistics and in the computer industry and describes a sequence of letters or numbers that express uniqueness. Nevertheless, 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 don’t have their own blockchain, but “coins” do. Bitcoins, for example, have their own blockchain and therefore represent an autonomous network. Moreover, “coins” are still considered exchangeable tokens.
- Translation: blockchain
Since the simple translation does not make much sense, here is the explanation: A blockchain is a decentralized database in which information is stored and made available on different servers (computers that provide resources). A blockchain can be understood as a kind of ledger, as new data is constantly being added. The peculiarity of this system is that the records are stored in the form of blocks which build on the previous block and contain information such as timestamps and transaction data. The block system allows all transactions to be traced, which makes data manipulation more difficult, as all the blocks build on top of each other and the information is linked. Among other things, information about previous owners is stored.
- Translation: ancient Greek for “to conceal”, “to hide” or “to protect”
The terms “cryptos” and “crypto” are often used as synonyms for cryptocurrencies. Cryptocurrencies are digital assets that are traded without central authorities such as banks or authorities – hence the word origin. There are over 10,000 cryptocurrencies today. They allow cashless payment, but are even prohibited in some countries. The best known cryptocurrencies are Bitcoin and Ethereum. The values vary enormously. But what has made Bitcoin so famous, for example, is the huge increase in its value. In 2010, a bitcoin could be purchased for the equivalent of eight cents. At its all-time high in November 2021, one bitcoin was worth $68,744.03. In the meantime, the value has fallen again, but is still in the five-digit range.
NFT Monkey: Bored Monkeys Win Millions
Bored Ape Yacht Club apes have made the rounds of the internet and are now one of the best-known NFTs.
Digital images can be purchased with Ethereum, a blockchain system with its own cryptocurrency. They go to the highest bidder – so prices cannot be determined exactly. In the meantime, however, the monkeys cost at least around 250,000 euros. Anyone who buys an ape gets exclusive access to the “Bored Ape Yacht Club”, which also hosts parties – which has drawn a lot of criticism from operators on the internet. It is not a question of protecting valuables, but of buying prestige objects. Justin Bieber, Jimmy Falon, Post Malone and Eminem, among others, have acquired NFTs from the club. In total, about 10,000 monkeys are available.
Art, games, tweets and more – examples of an NFT
NFTs are not limited to digital artworks. In-game items such as Rare Artifacts or Real Goods are now also sold as NFTs. Here are some NFT sales in 2021:
- In the spring of 2021, the first tweet from the founder of Twitter Jack Dorsey sold as NFT for 2.5 million euros.
- During the summer, the first source code for the World Wide Web was released by Tim Berners-Lee sold in NFT for 4.9 million euros.
- In December 2021, the world’s first text message from 1992 was auctioned off as a digital code for 107,000 euros. Vodafone said he wanted to donate the money to a refugee aid organization.
Buy NFT: which marketplace is reputable?
The largest NFT provider is currently OpenSea. An NFT can be purchased through the platform, but you can also create and upload it yourself. The NFT platform works the same as eBay, but real money transactions are not allowed. An Ethereum wallet must exist for purchase, so a potential buyer must already have an Ethereum account.