Many become public talks, a student who sells his NFT selfie photos to be worth billions of Rupiah. He is Gustaf Al Ghozali (22) a student of D-4 Animation Studies at Dian Nuswantoro University (Udinus), Semarang. So, what is NFT? How does it work?
What is NFT?
Literally, NFT or Non-Fungible Token is a token that is not interchangeable. Launching CNN, (10/11/2021), NFT is a digital item that can be traded with blockchain technology in crypto currency.
Unlike other objects or assets that are traded for equivalent value, NFTs have disproportionate selling values. According to the meaning of the name. This is what sets it apart from other assets.
For example, Ghozali's selfies are valued at 0.3 to 66,346 ETH (Ethereum) which are very large in Rupiah. Items sold are not only limited to digital images. There are also those who sell NFT in the form of virtual land.
Investors who buy NFT will not receive the product they paid for, but will instead get a certificate of ownership of the item that is recorded on the blockchain.
How to buy and sell NFT?
Like other cryptocurrencies, NFTs are traded on specialized platforms. OpenSea as used by Ghozali is known as the best marketplace for NFT.
After purchasing an NFT, an investor will get a certificate of ownership, explains Livemint. The certificate can come in many forms and regardless of the form, the certificate of ownership must be properly stored in a digital wallet.
In order to purchase NFT, the digital wallet must contain sufficient relevant cryptocurrency, for example ETH if the person wants to buy tokens on the Ethereum blockchain.
One NFT item sometimes becomes a phenomenon that people fight over. The item in cash will have a high selling price. However, for parties who help raise the prestige of an NFT, usually they will be given a lower price.
Pros and cons of NFT
Due to this discrepancy, the NFT has received a number of criticisms. Investors in NFT are considered to be wasting high amounts of money to acquire worthless items. However, those who are pro with this activity insist that NFT is not just knick-knacks in digital form.
On the neutral side, there are also those who predict the use of blockchain to record the history of ownership of an item will eventually become much broader and revolutionize the way we think about property. Broadly speaking, this NFT is referred to as an investment that is far from certain
