The NFT market works by allowing digital assets to be bought and sold as unique, one-of-a-kind items using blockchain technology. NFTs, or non-fungible tokens, are unique digital assets that are verified on the blockchain, which is a public ledger of transactions that cannot be altered or deleted.
Owners of NFTs have sole ownership over the digital asset, which can be anything from art, music, videos, photos, and even tweets. The value of an NFT is determined by supply and demand, with some NFTs selling for millions of dollars.
To participate in the NFT market, buyers need to have a digital wallet that is compatible with the blockchain platform being used. Sellers can set a reserve price for their NFT or use an auction format to determine the final sale price.
NFTs can be bought and sold on various online marketplaces, such as OpenSea, SuperRare, Nifty Gateway, and Rarible. Transactions are typically conducted using cryptocurrency, such as Ethereum. The proceeds from each sale are distributed between the seller, the platform, and any creators or original rights holders of the NFT.
