What is the NFT Boom all about?

In the crypto world and also outside of it, the term NFT is used more an more frequently.

What is a NFT?

NFT stands for non fungible token which in plain English would mean a token that can't be replaced. It's one of a kind.

What are the usages of NFT's?

The first usages for NFT's were seen around artistic circles. Artists create a piece of art and tokenize it to sell it. This can be done for paintings but also songs and videos. The problem here is that it's difficult to quantify the value of such NFT's. In addition to that an artist can create several copies of the same piece of art and sell it. These types of NFT's have therefore a collectible value.

Another sector where NFT's are being used is the gaming sector. NFT's allow to represent caracters or abilities from games and they can be traded and sold. A very good example is the game splinterlands. The gaming cards are NFT's, you need these cards to play the game. You can combine the cards to get better ones. This is what is called blending NFT's, you take two or more NFT's and you combine them together to get a more powerful one in the process.

Splinterlands NFT's can be traded, rented and exchanged among users. This is pretty interesting from a user point of view because he will remain owner of the assets that he purchases. Each asset has a certain value.

I would make a difference between these NFT's. There are some NFT's that have actual use cases and an inner value and other NFT's that don't really have one but still you can find people who will be willing to pay good money for them.

On which platforms do you find NFT's?

NFT's can be found on a lot of blockchains today but I would say that Ethereum has probably still the biggest market. The problem here are also the transaction costs. In my opinion the best blockchain for NFT's is WAX. WAX is a EOS clone and offers the possibility to transact for free with very little staked coins. Another big advantage of WAX is that it is very user friendly. You can create an account in a couple of seconds with your facebook or google account. There are also platforms that allow you to create or trade NFT's without needing any coding knowledge. The most well know is Atomic Hub.

How can you earn money with NFT's?

This is something that most people don't really understand. The most obvious one is that you can earn by selling or trading NFT's. It's like trading with other tokens. If you sell it for more than you bought it, you can make a profit.

However there are also other ways. There are plenty of NFT's that are given away for free and maybe one day they will have some value. One idea is to collect these free NFT's and try to sell them later on.

Then you can make money by creating and selling NFT's. On the Wax blockchain, you can set a percentage that you will get each time that somebody sells your NFT's. This can make your NFT's like a kind of perpetual passive income generators.

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