THE NFT HANDBOOK: A Comprehensive Guide to Navigating the World of NFTs (2023)

By Christopher Reid

"The NFT Handbook: A Comprehensive Guide to Navigating the World of NFTs" offers an in-depth exploration of Non-Fungible Tokens, from their origins to their role in reshaping digital ownership and creativity. This book serves as an essential resource for individuals seeking to understand and engage with the NFT

• Language: English
• Publisher: Christopher Reid
• Release date: Aug 18, 2023
• ISBN: 9783988314680

Christopher Reid

Christopher Reid is a seasoned author, crypto enthusiast, and blockchain expert based in the heart of New York City. With a background in finance and technology, Christopher has delved into the world of NFTs to unravel their complexities for readers. "The NFT Handbook" is a testament to his dedication to simplifying intricate topics for a wider audience.

Book preview

TABLE OF CONTENT

CHAPTER NO. 1

NFT BASICS

CHAPTER NO.2

HISTORY OF NFTS

CHAPTER NO.3

TYPES OF NFT

CHAPTER NO 4

BENEFITS OF NFT

CHAPTER NO. 5

HOW TO CREATE NFT?

CHAPTER NO. 6

HOW TO MONETIZE YOUR  NFT?

CHAPTER NO. 7

NFT MARKETPLACES

CHAPTER NO. 8

REAL ESTATES

CHAPTER NO. 9

BECOMING A CRYPTOARTIST

CHAPTER NO. 10

LIST OF 10 MOST EXPENSIVE NFTS EVER SOLD

CHAPTER NO. 11

LIST OF NFT PROJECTS TO INVEST IN 2022

CHAPTER NO.12

TIPS AND TRICKS OF NFT WORLD

13TH CHAPTER FAQS

THE NFT HANDBOOK

CHAPTER NO. 1

NFT BASICS

A

n NFT, or  no fungible  token, functions as a proof of algidity for physical or virtual things, akin to a  certificate  of ownership. A worldwide network validates every change in ownership of a digital file. and recorded on the blockchain network's public ledger, which preserves the unique digital file. This indicates that accurate documentation is permanently recorded in the file, making it impossible to replace with a forgery. Bitcoins and other cryptocurrencies, on the other hand, are fungible tokens; like the US dollar, each bitcoin is equal to any other, while NFTs are only one. Since its start, the bulk of NFT sales have been recorded on the Ethereum blockchain in digital currencies such as Ether. At the same time, this is not a requirement of the format.

The NFT file does not contain the Shatner card in its original form, in addition to the electronic piece of art and video clip. It is essentially a contract that declares the holder of this NFT possesses this other digital file, and it is often accompanied by a hyperlink to the art file itself. NFTs may be used as ownership records for real estate transactions in addition to being used as unforgeable electronic tickets to events. They are, after all, one-of-a-kind bits of code with a verifiably lengthy line of ownership attached. This notion was initially used in the computer game CryptoKitties. Users have been able to acquire and sell collector NFTs attached to certain virtual cats since 2017, with prices exceeding six figures at the start of this year.

Dapper Labs, the same business that launched Crypto Kitties, also owns Top Shot, a booming NBA collectibles firm. From October through January, Top Shot sold $230 million in NFTs featuring basketball highlights. When it comes to collecting, the appeal of NFTs is undeniable. Rather than relying on forensics or shaky document records to determine the authenticity of a piece of art or a trading card, the authentication is encoded directly into the NFT file itself. The appeal of non-fungible tokens (NFTs), which are already being acquired and exchanged for millions of dollars, is far less evident.

In contrast to a physical trading card, which someone may value for its rarity in a historic manufacturing run or desire to complete a collection, an NFT file is not a material trading card in and of itself. Furthermore, it is not a piece of art, much less a well-known work of art with a reputation for refinement or historical importance. Furthermore, in the case of digital files often linked to NFTs, everyone may watch the same basketball video anytime they want or download a copy of the same digital image to their hard drive. An NFT does nothing more than re-verify and record the provenance of the NFT itself, similar to a limited edition image, but when the piece of art associated with the NFT is publicly accessible, there is no intrinsic reason for the NFT to have any value at all. At this time, the market's collective imaginations come into action. Non-fungible tokens (NFTs) are similar to how artwork and trading cards may function as financial goods for investors since they lack inherent value. Despite the fact that the high art market is backed by an economy of professionals and tastemakers who theoretically influence the value of certain art works, the elite art market has been isolated from any actual reality for decades.

The majority of art buyers buy works of art because they are valuable, not because they are works of art, and then store them in storage houses until they are ready to liquidate them as an asset on their books and sell them to a new buyer who also values them as a financial asset. The trading card industry boomed in 2020, with rare card values routinely smashing records. A Michael Jordan and LeBron James card, for example, sold for $900,000 in February, another LeBron card sold for $1.8 million in July, and a Giannis Antetokounmpo card went for $1.81 million in September. An auction in October sold a 1909 Honus Wagner baseball card for $3.25 million. The cards themselves did not change, but as an investment market, they were more tempting to traders and investors looking for a safe haven with potential returns, similar to fine art. NFTs apply the same idea—that anything unique and verifiable may be used to hold money and generate returns—to an imagined real or virtual asset, independent of its physical or virtual form. Jack Dorsey, the creator and CEO of Twitter, will auction off an NFT attached to his first tweet in an auction on a website dedicated just to selling NFTs of tweets, with the highest price already standing at $2.5 million. Some people sell non-fungible tokens of other people's artwork without their consent. If you wanted to, you could try your hand at trading an NFT for the moon.

However, creating money out of thin air comes at a real financial cost to the economy. Processing Bitcoin transactions requires a substantial amount of processing power, causing environmentalists to voice concern about cryptocurrency growth. Joanie Lemercier, a French artist who is concerned about the environment and constantly checks his studio's energy consumption, was astounded to see that the sale of only six of his paintings as NFTs used more electricity in one day than he had used in the previous two years. On a larger scale, it is estimated that the computer networks that form the Bitcoin and Ethereum blockchains use as much electricity each year as Argentina and Ecuador.

Aside from the high energy costs, there is no guarantee that NFTs will retain any of their value in the long run, just as there is no reason to believe that a scrap of paper with a photograph of Honus Wagner on it would ever be good enough to justify more than the cardstock on which it was published in 1909. However, for the time being, many artists have cashed in on the craze. For individuals attempting to generate money from their work by soliciting advice or selling physical prints, a piece of art with an NFT on it may bring in thousands of dollars. The music business has also begun to dip its toes into the virtual reality seas. The record was published last Friday via all of the traditional distribution methods by Kings of Leon. They did, however, decide