NFT stands for 'Non-Fungible Token'. It's a unique digital file that cannot be replaced. Essentially, an NFT is a certificate of ownership linked to a digital asset. This could be an original artwork, a photograph, a video or a document. Every one has its own attributes or edition number, and is impossible to forge or replicate. Every NFT you own is securely stored in a 'wallet': an online digital safe only you have access to. Their complete history, provenance and authenticity is recorded on a Blockchain, which can never be altered or broken. And they can be easily bought and sold online from anywhere in the world.
So how does this all relate to you? Because this technology is merging with the rare collectibles industry in a big way. In 2021 sales of NFTs hit a remarkable $25 billion. The world's most respected auction houses Christie's and Sotheby's are now conducting dedicated NFT art auctions. And although the NFT market began with contemporary digital artworks, the technology offers new possibilities in every category of collecting. It could be in the form of fractional ownership, which offers collectors of every level the chance to own the rarest historic items. It could bring you peace of mind that your collectibles are 100% genuine - without exception. And it could give you access to your collection from anywhere in the world...
The world's largest cryptocurrency marketplace Binance sums the current situation up nicely:. “The collectibles industry has been around for a long time, and items such as baseball cards, stamps, and sneakers have long held value to collectors all over the world. "But challenges like restricted access, the risk of forgery, and physical damage are common obstacles for many collectors. “With the help of blockchain technology and NFTs, many of these problems have been solved. "Moreover, as the technology behind NFTs continues to evolve, it may even completely change the way we collect valuable items in the future.”
Here are a few basics about Digital Collectibles you need to know
Blockchain: A digital 'ledger' which permanently stores and records information about an NFT, such as ownership and transaction history.
NFT: A unique digital asset which cannot be replaced or replicated.
TokenID: The unique identifier number of the NFT.
Cryptocurrency: An encrypted digital currency such as Bitcoin or Ethereum.
Wallet: A password-protected device or online platform in which NFTs and cryptocurrency is stored.
Discord: An instant messaging platform used by NFT collectors.
Drop: The initial release of an NFT onto the open market.
Minting: When an NFT is 'minted', it's published onto the blockchain for the first time.
Whitelist: An exclusive list of users with guaranteed early access to a new NFT collection
Opensea: The world's largest marketplace for NFTs and crypto collectibles.