What are NFTs?

You’ve heard about this new NFT fad. You found out that one artist (Beeple) made $69 million from one single NFT. Now everyone is talking about it and everyone wants to invest. Whatever led you here, it’s time to get a good understanding of what it’s all about. Let’s start with the basics.

What are the NFTs?

NFT stands for NonFungible Token. Non-Fungible means that that asset is unique and cannot be replaced. For example, a virtual currency (e.g. Ethereum) is fungible because it can be exchanged for another currency. NFTs are intangible digital content that becomes unique via the blockchain. This technology is used to certify and make digital works of art more exclusive. Basically, NFTs are files that become assets through a signature, and this signature is obtained with blockchain.

The blockchain comes to our aid

The blockchain is a system that controls and keeps track of operations and transactions of all kinds. In the case of NFTs, they certify the history of the digital file and its uniqueness. Today, the most widely used system to buy NFTs is the cryptocurrency Ethereum, given its specific characteristics. 

What can become an NFT?

Any digital object can become an NFT. Whether it’s a song, an image, a three-dimensional model, or even a tweet. In fact, Jack Dorsey, the founder of twitter, sold the first tweet and made $3 million.

What does this have to do with collecting?

The success of NFTs is precisely due to the fact that with the blockchain, a collector of digital art can prove that they own an original, unique work. Unlike a painting, artists have the ability to issue sets of unique works, allowing them to control the accessibility, exclusivity and desirability of their art, changing the way in which works are collected and exhibited. We’re already seeing traditional auction houses selling NFTs, galleries and museums exhibiting digital and virtual works. We’re witnessing the evolution of fine art. 

How much do the works sell for?

The prices can be extremely high. Beeple’s collage sold for $69 million. A few-second video of Grimes sold for $390,000.

If you want to sell your art

There are several channels that allow you to sell your art to anyone, such as Rarible and other platforms with verified artists like Foundation.

If you want to buy art

Buying art is an investment. First, you support an artist and get the ownership rights to the NFTs. Like anything else, secondary markets allow you to resell for a return on your investment.

Valuart is the platform for those who want to invest in Non-Fungible Tokens. Designed to give value to art and collecting. We collaborate with leading artists and support remarkable work. 

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