NFTs or non-fungible tokens are the new buzzword in the digital world. But to a layman what are NFTs and what is all the hype around them?
NFTs are ‘one-of-a-kind’ or unique assets in the digital world having no tangible form of their own but can be traded like any other piece of property. NFTs can be thought of as a type of collectible like a piece of art or painting in the digital world just like what Bitcoin is to the world of digital currency.
However, since these tokens are non-fungible which means it can’t be interchanged with anything, unlike money. Money being a fungible asset in economics can be interchanged or swapped like exchanging a 100 rupee note for two 50 rupee notes without changing its value.
Just like there can be only one original painting, though you can buy prints of the same or download a photo, similarly with NFTs, the digital tokens can be likened to a digital certificate of ownership that can be bought and sold.
Since, the blockchain stores a record of ownership on a shared ledger across thousands of computers around the world, these records cannot be forged. NFTs can also contain smart contracts to give the artist any royalty from the future sale of the token.
Its true that the crypto art sold as NFTs like the examples above have been copied and shared endlessly, but the buyer of the NFT owns a token certifying that ownership as an ‘original’.
Since all this information is stored on the blockchain, anyone can verify the asset’s authenticity and ownership.
Generally, the artist retains the copyright of their work and can continue to sell or produce copies.
If you are keen to have your own NFTs, you will need a digital wallet to store the NFTs and cryptocurrencies. From this digital wallet, you’ll have to purchase some cryptocurrency which has to be what the NFT provider accepts. Cryptocurrency can be bought using your credit card on platforms like Coinbase, Formatic, Kraken, eToro, PayPal and Portis.
With your wallet funded and ready for use, you can start shopping from the NFT marketplaces like OpenSea, Rarible, Foundation and so on. However, you need to be mindful that each marketplace has its own crypto wallet requirements. There’s no common crypto wallet acceptable on all sites. At least not yet.
NFTs are attracting a lot of attention, what with even high-profile celebrities pitching in with their investments. However, without extreme due diligence, no one can make out if a non-fungible token is worth the effort or a dud. Unless of course, you have an eye for identifying diamonds in the dust. If you really must, then invest with caution. The only reason NFTs might turn out to be good investments if because of their scarcity and collectability. They are akin to the art market, albeit much more riskier.
It's well-nigh impossible to sift fool’s gold from the real deal. Issues like the volatility of the cryptocurrencies that the NFTs trade in, the influx of spammers and grifters in the NFT market, and whether the collectors value the art they buy, must be explored in detail to counter the reservations around the NFTs.
Since NFTs are bought and sold using cryptocurrency, there is a concern about their carbon footprint. These transactions are quite energy inefficient and emit quite a lot of greenhouse gases.
There has been a lot of discussion on the energy use in the NFT world and the need to make the platforms more sustainable.
We at Jazaa provide financial advisory services to small companies and start-ups which helps them in managing financial crisis and maneuvering the tight spots as we provide them with financial modelling and financial analysis along with financial forecasting to help them take sound decisions.
We also give CFO services along with accounting and bookkeeping. All the data analysis is done, for our clients, to take decisions accordingly. Financial management is a daunting task as it encompasses all the departments and the whole company. Working with us enables our clients to have someone who has a clear understanding of their goals and has the expertise to help them achieve these goals and turn their dream into a reality.
JaZaa Business Services takes pride in its long-term associations with startups from varied industries and worldwide locations. We provide end to end business solutions to Startups right from its early stage to its development phase. We aim to provide wholesome and qualitative services to our clients by focusing on their growth and overall development. We deeply value our relationship with clients and look forward to serve them in the best of their interests.
Copyright © 2025 Jazaa . All rights reserved.
