Overview of NFTs
For the year 2021, the term “NFT” found itself as the Collins Dictionary “Word of the Year”. NFT stands for Non-Fungible Token and is defined by this dictionary as “a unique digital certificate, registered in a blockchain, that is used to record ownership of an asset such as an artwork or a collectible.”
Think of NFTs as a type of cryptocurrency — bitcoin, ethereum and the rest — but the difference is that NFTs are not fungible (fungible: Able to be substituted for something of equal value or utility; interchangeable, exchangeable, replaceable. More like saying 1 dollar can stand in for N500 in the exchange rate or let’s say two N200 notes and one N100 note can stand in for N500 or better still “the value of one BTC is xyz dollars). Non-Fungible means that something cannot be exchanged for something of another value. This explains NFTs as a unique token owned by an artist or any creator and attached to their works in such way that they can keep track of these works on the internet (no matter how many times it must have been “shared”) and claim ownership to them, selling them whenever they want to at a particular cost. These works that have NFTs attached to them could be artworks, images of physical objects, GIFs, virtual trading cards or even tweets — former Twitter boss Jack Dorsey sold his first ever tweet for the whooping sum of $2.9 million!
The Guardian Life Likens NFTs to “precious relics, rare art or a limited-edition Rolex or sports car”.
Though the Nigerian government has been having a clampdown on cryptocurrencies, the Nigerian crypto economy is still the largest in the world as stated by Statista Data. It is believed that in 2022, the NFT market in Nigeria would rise exponentially.
Thinking of venturing into NFTs? Forbes Advisor has this to say:
First, you’ll need to get a digital wallet that allows you to store NFTs and cryptocurrencies. You’ll likely need to purchase some cryptocurrency, like Ether, depending on what currencies your NFT provider accepts. You can buy crypto using a credit card on platforms like Coinbase, Kraken, eToro and even PayPal and Robinhood now. You’ll then be able to move it from the exchange to your wallet of choice.
You’ll want to keep fees in mind as you research options. Most exchanges charge at least a percentage of your transaction when you buy crypto.
Forbes also mentions OpenSea.io, Rarible and Foundation as the biggest marketplaces to trade NFTs.
For a first hand information, we spoke with Nigerian Artist Chinemerem Omeh who released his first NFT project in October 2021.