What is NFT in plain language

This article is not financial advice, it is only informative. 

Today NFT is not something new and unusual. Almost every one of us has seen the news, where 13-year-old children became millionaires because of NTF. Is it really so simple and more important, how to make it work for you personally? In this series of articles, we will tell you about what it is and how people make millions on NFT. Why do NFTs cost so much? What do you need to know to start making money on it and how you can do it without leaving your home?

Lots of you have probably seen millions of pages of text about what NFT is, how it appeared and where it is used and heard this complex definition.

Speaking simple NFT is the right to own a non-fungible object that has a unique identifier and there was something else about string theory and multiverses. We have all seen this definition from Wikipedia, but only a few people understand what it really means. Let's analyze this with real examples so that even a 6-year-old child understands what it is. Let's start with ownership. For simplicity, let's take a parallel to something more real, for example, taking a car. The person who owns the car has a document (VIN) that confirms his ownership of this particular car. You probably have heard stories that an NFT image can be copied, photographed, and everybody can get it. This is the same as taking a picture near someone else's car, you will have a photo, but no proof that this car is yours. You also cannot sell a car without documents. It is the same with NFT, without having a document for it, it is not yours. Therefore, two absolutely identical pictures can have different prices. To summarize, NFT is your right to own an object, confirmed by a unique identifier. And to put it simply, this is an electronic passport confirming that the NFT is yours.

  Anything can be an object - from a picture on the Internet or your favorite pen to the right to own real estate. At the moment, the lion's share of NFTs that have value are virtual objects. The most famous NFTs in the world are Cryptopunks and Bored Ape Yacht Club, where the cheapest items in the collection cost 72 Ether, or $185,000. True, in order for an ordinary picture on your computer to become an NFT, it needs to be assigned a unique identifier, which we write about above.

The easiest way to get a virtual passport for an object is to use a special service. The largest at the moment is OpenSea. This service will help not only create an NFT but also sell it, as it is the largest NFTs marketplace. In order to make an NFT from your object using this service, you need only two things:

What is a Metamask and how to create it you can read here.

The next step is to sell NFT, you can do it on OpenSea by logging into your account, selecting an object and pressing the Sell button, and setting a price of several million. Well played, now if your NFT is bought you have a chance, about one in 10 million, of being in the same line with 13-year-olds who made a huge fortune from NFTs.


 What determines the cost of NFTs, who are these 13 millionaires and how did they do it. and most importantly, how to really make money on NFT for you, we will consider in the next article.