The explosion of many NFT games recently makes many people ask what is NFT ? Let’s find out with Finhay about NFT and how to invest in NFT in 2022!
What is NFT?
NFT stands for Non-Fungible Token, meaning that Tokens are unique and non -fungible . Each NFT can act as “proof of proof” and “property” in digitally related fields. This superiority is due to the application of Blockchain technology , in which each unit of encrypted data stored on the Blockchain helps to represent a certain asset. These assets can be “virtual assets” but can also be “cryptographic versions” of something in the real world.
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To make it easier to imagine , usually for Fungible Tokens, we can completely exchange them with others because their values are equivalent. However, with NFT, each asset such as a painting, game character, etc. is unique and irreplaceable, thus creating a unique value for these assets.
NFT is known as a unique, irreplaceable digital asset. So how is the uniqueness of the NFT defined and what characteristics does the NFT have?
Features of NFT
The invention of NFT has been considered by some investors to create many opportunities for the market to buy and sell valuable digital assets thanks to the unique characteristics of NFT based on Blockchain technology. Specifically, NFT has three outstanding properties:
- Uniqueness: Each NFT is unique and completely distinguishable from other NFTs despite being duplicated.
- Perpetuity: NFTs can live forever with the information related to that NFT such as the time of issue, images, sounds of the NFT, etc.
- Programmable: Simply put, NFT is a line of code on the Blockchain platform. Therefore, we can always verify the author as well as the information of the NFT.
- Ownership: NFT holders have full discretion to own and use the NFT Click here.
What applications does NFT have in life?
Thanks to these special properties, NFT has been widely applied in many fields such as digital artwork, collectibles, in-game items, sports NFT, etc.
- Art: With NFT, artworks can be converted into digital asset files and tied to Tokens on the Blockchain platform, making buying and selling of these works easy and reliable. . This is revolutionizing the art industry as it helps artists protect the copyright of their works, which has always been controversial in the real world.
- Gaming: NFT is an application that allows players to really own items and characters in the game, and trade with less risk. For traditional games, publishers provide and sell in-game items. To own items, players need to deposit money to buy them but the actual ownership is with the publisher (virtual items). For blockchain games with NFT applications, the player’s item is tied to a data token, which can be easily exchanged for anyone to collect money.
- Digitizing real assets: In the future, NFT is expected to be widely applied in all areas of life, encrypting all assets, intellectual property rights, …. Assets like land can be put on Blockchain, tokenizing ownership in the form of NFT, helping to solve the problem of fake red numbers in real estate. Event tickets can be encrypted so that they cannot be tampered with. Other assets of high value can also be Tokenized as proof of ownership, etc.
- Development of digital content: With the current explosion of digital content, NFT can be applied to help encode products such as music, icons and memes, etc. value of these digital assets through ownership verification. A good example of this application is the Twitter founder’s first Tweet that was sold for $2.5 million.
How to invest NFT effectively in 2022?
Exploring NFT, we can see there are many ways to monetize this groundbreaking new technology. Here are some ways to help answer the question of NFT investing how to make money effectively?
- Make money from the release, purchase and sale of artworks : Works such as paintings, digital songs, etc. are one of the most popular and profitable NFTs created in the market until now. current time. According to Crypto Potato, the most expensive NFT right now is The Merge – a digital painting created by an anonymous artist named Pak and sold on December 6, 2021 for 91.8 million USD.
- Participate in the popular NFT games in the market : Players can collect Tokens through playing games and performing quests. The obtained Tokens can be converted to cryptocurrencies. Besides, players can also collect, own and sell exclusive in-game items and accessories to collect money through NFT technology. The games that are attracting users in the Vietnamese market can be mentioned as Axie Infinity. The Sandbox, Evolution Land, CryptoBlades, ….
- Invest in original NFT projects : It is easy to see that there are many NFT game projects that develop at breakneck speed and receive huge amounts of investment. Therefore, pouring capital into NFT startups can create an opportunity for investors to make quick profits. However, this way requires investors to have knowledge and experience in selecting potential projects click here.
Which Coins does Trend NFT include?
What is NFT Coin? Each NFT project will issue a type of NFT Coin to facilitate operations, transactions, and purchases on that project. This is considered a tool to help participants convert cash later. Like all cryptocurrencies, Coin NFT can be easily traded on high-traffic Crypto exchanges like Binance .
Here are some of the most popular NFT coins today:
- Elemon: This is a project like an NFT game developed by VTC Studio with eye-catching graphics. Simple but attractive gameplay that combines action and tactical thinking.
- Theta Network – THETA: Theta Network is a platform providing online video streaming services. This project has exploded strongly thanks to the impact of the Covid pandemic. Most of the activities having to take place on the online platform.
- Chiliz – CHZ: Along with THETA, CHZ is also one of the few NFT Coins worth investing in today. The project is currently operating on the Ethereum Blockchain platform .
- Decentraland – MANA: Decentraland is designed as a virtual reality model, operating decentralized. All land and items in Decentraland are derived from the Ethereum Blockchain. Players have absolute ownership of the assets as well as participate in the voting process.
- Axie Infinity – AXS: This is a Game project founded and operated by Vietnamese people. In 2021, the Axie Infinity project attracted attention when it called for a large amount of investment. And became one of the unicorns of Southeast Asia in 2021.
By learning about what NFT is and how to invest in NFT in 2022. We can see the great potential of NFT projects. At the same time, it also comes with significant technological challenges as well as systemic risks. Finhay wishes readers to have a thorough understanding and smart investment strategies to seize this opportunity!
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