What Are NFTs and How Do They Work?

It’s 2022, and cryptocurrency is all over the internet and the news, yet many of us are still asking, “what are NFTs?” If you’ve found yourself embarrassed while muttering these words, you’re not alone! The world of crypto is fast-paced and overwhelming. Nonetheless, NFTs are unique and the first of their kind, so it’s worth getting to know what they’re all about.

What are NFTs

So, What Are NFTs?

In a world where images are readily available at our fingertips 24/7, NFTs give ownership and a sense of scarcity back to images viewed on the screen. An NFT (non-fungible token) is basically a digital file wherein the creator retains copyright by turning them into a “token” and securing them on a blockchain.

Identifiers such as barcodes and metadata are used to differentiate NFTs. Once put into a blockchain, the digital art is secured in the blockchain timeline, and hacking the information to steal or alter the work becomes nearly impossible.

What are NFTs used for?

There’s a wide range of creations that are used as NFTs. Some of the most popular choices include avatars, 1/1 artwork (deemed one-of-a-kind), generative art, photographs, video art, games, and even music. Just like a physical piece of art in the real world, an NFT creation can be sold by the owner, bought, and traded. But since it lives digitally, registering a digital creation as an NFT reduces fraud and the chance of it being copied without the creator making a profit

The Most Popular NFTs of 2022

NFTs come in all shapes and sizes, making it difficult to know how to spot them and which ones will be worth your time. Although the market is constantly shifting at a rapid pace, it’s still worth noting the types of NFTs that find success. All in all, avatar collections seem to be the highest-selling creations. An NFT avatar collection usually has thousands of characters for sale, wherein the buyer becomes part of an entire digital universe or game. With that in mind, here are the top three NFT collections making waves in 2022.

  1. CryptoPunks. Although the project was launched back in 2017, CryptoPunks remains one of the most sought-after NFTs because of its early uprising and powerful influence over the direction of NFTs as a whole.
  2. Silks. Silks is an NFT collection with 10,000 3D avatars for sale. When a lucky buyer gets an avatar, they get access to the blockchain-enabled metaverse of competitive horseracing.
  3. Guilty Bunnies. An effective tactic for spicing up the crypto industry, Guilty Bunnies is another collection of avatars that will bring buyers into an exclusive club called the “Guilty Team”.

The Best Places to Sell and Buy NFTs

Now that you have a good idea of what NFTs are, how they’re used, and what kind of projects find success, it’s time to dive in yourself! We recommend the following NFT marketplaces for getting started on your own journey of selling or buying NFTs.

  1. OpenSea
  2. SuperRare
  4. Rarible
  5. Axie Infinity