What are NFTs (non-fungible tokens) and how to create and sell them

NFTs or non-fungible tokens are the new craze that has hit the internet community lately, in a few months we have all been surprised by many artworks and videos that have been sold for thousands, hundreds of thousands, and even millions of dollars, with no ownership rights or even royalty rights for their owners. 

Global news channels have panicked every day: THE FIRST 5000 DAYS by Michael Joseph Winkelman, better known as Beeple, sold for $69 million, yes that's right, $69 million, making him the third richest artist alive today. 

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People sold an NFT for $69 million 

• The word NFT does not have a clear equivalent in Arabic and not even an agreed translation, but we will express it as non-fungible tokens as a smart translation of the English equivalent Non-Fungible Token.
• These codes are described as non-fungible; That is, they are not characterized by the feature of symmetry, Fungibility, which suffers from being distinguished in a more “authentic” Arabic form or wording. These symbols are one of a kind that is not similar to any other symbol. They are exactly as experts say about them, such as the original Mona Lisa by Da Vinci, which is estimated at 850 million dollars, Or as a starry night with an estimated value of $80 million.
• These irreplaceable tokens like plates are one of a kind, and you give them their value when you own them. But the difference is that you only have it digitally on the blockchain, and others can copy and use it as anything on the internet, and you also don't have real ownership rights to it or even usufruct, crazy right?

Non-Fungible Token (NFT) Definition 

• To understand how NFTs work, we need to understand Blockchain technology, and to understand Blockchain we have to understand what is meant by encryption or Encryption, so we will start with it. Very difficult, a technique frequently used on the Internet to maintain privacy.
• For example, the WhatsApp application that we use is an example of End to End Encryption, that is, the messages that you send are encrypted, and they are not decrypted until they reach the person you are messaging, and so then he can read the messages, and this process ensures that if anyone can Somehow he gets to intercept this message and he can't read it because he can't decrypt it.
• It would certainly fit, well fortunately they do exist and they are called hashing algorithms, which are used in the blockchain and in non-fungible tokens.
• These hashing algorithms can convert data into a specific array of entered numbers and letters so that if one character of the entered data is changed, the entire array changes. 
• This process takes place in one direction; That is, it is almost impossible to reverse, because even if you own the array, you will never be able to generate the data entered.
• These algorithms are used in the Blockchain to ensure that the owner of the assets or coins is actually the one who is transferring them. As we talked about in the crypto wallets article; Each wallet has a private key and a public key that is extracted using hashing technology.
• And this public key you can give to anyone to transfer money to you, while your private key is secret because it is the only way that you can complete your transfers, and that confirms to the blockchain that you own the currencies you are transferring, and this transfer is allowed.

The History of NFTs & How They Got Started

You can buy and sell music as a non-fungible symbol, and deal with it as you would deal with paintings, pictures, and artwork, but you can also use texts in the same way, and sell them on many popular platforms.

The world of NFTs knows no bounds, whether price frenzy or crazy creativity, there are non-fungible tokens that come in the form of video games, designs for virtual reality and augmented reality, and who knows there may be more exotic examples of assets that can be virtualized in the form of NFTs.

Investors treat these pieces that they buy as an investment like any investment in real estate or gold and use them to preserve their wealth and to ensure that their value increases over time so that they can sell them later to get the profits that exceed what they paid in it.

How to make and sell an NFT

Although it seems a little complicated, and a person needs to be a computer scientist or a specialist in the Blockchain, it is quite the opposite. Making non-replaceable tokens is easy and clear and can be summarized in four steps:

1-Opening and Ethereum-enabled wallet Buy some Ethereum to pay business expenses and display non-fungible tokens.

2-Connect your Ethereum wallet to the platform for selling non-fungible tokens.

3-Generate non-fungible tokens and display them on the platform.

THE CLIMATE CONTROVERSY SWIRLING AROUND NFTS

• The risk of NFTs being a bubble or not is the most prominent objection on the scene, but there is also a very strong objection that they are destructive to the environment, as the process of making non-fungible tokens requires as much electricity as mining Bitcoin or Ethereum.
• Of course, a large part of the world's electricity comes from burning fossil fuels, which causes increased levels of carbon dioxide in the atmosphere, which leads to very great environmental damage.
• Do not underestimate this damage, as Bitcoin mining alone requires the same amount of energy annually as a large and developed country like Switzerland with its population of about nine million people.
• This is the reason why Tesla reversed its decision to allow the purchase of its cars using Bitcoin in order not to cause more destruction to the environment ... especially after the environmental disasters that affected the world in the past few years.