Amitabh Bachchan's NFT Collection Gets Highest Bids, But What are NFTs?

Amitabh Bachchan's non-fungible token collection has hit the highest bidding in India on the first day of auction.

NFT stands for non fungible token which is a unique form of cryptocurrency.

(Photo: PTI)

Veteran actor Amitabh Bachchan's non-fungible token (NFT) collection has hit the highest bidding in India on the first day of auction, NFT platform Guardian Link said on Tuesday, 2 November.

The auction went live on Monday, 1 November, and closed on Thursday, 4 November. Bachchan’s ‘Madhushala’ NFT collection received $4,20,000 on the first day.

NFT has gained popularity in the world of cryptocurrency.

Ever since Twitter CEO Jack Dorsey decided to sell his first-ever tweet as a non-fungible token in March this year, users have flocked to buy NFTs.

But, how can you buy something like a ‘tweet’, and is it of any value? Read on to know.

What is an NFT?

NFT stands for non-fungible token, which is a unique form of cryptocurrency. It is a digital certificate of ownership of an asset. For instance, a cricket match ticket is a sign of ownership of one space to watch the match.

According to Investopedia, NFTs are cryptographic assets on blockchain with unique identification codes and metadata that distinguish from each other.

NTFs can be used to represent ownership of artwork, properties, a collection, and literally anything that is ‘one of its kind’. An NFT is transparent and stored on the blockchain, which makes it easy for everyone to see the ‘owner of the token’.

What Makes NFT Unique?

NFTs are non-fungible, meaning that they are unique. For instance, your mobile phones, computers, PS5, makeup kit ,and everything around you that holds the same value to everyone and can be easily bought again are fungible.

NFTs are objects that exist only in a digital form – that you can buy and own. The best example could be artworks, which cannot be replaced.

How Do NFTs Function?

As mentioned earlier, NFTs are digital certificates and can be bought or sold just like any other valuable item. When you buy an NFT you receive a certificate secured with Blockchain Technology which makes you the owner of that particular digital asset.

Anyone can create, buy and sell an NFT without asking for any prior permission. These assets are stored in an encrypted peer-to-peer network which makes it very difficult for cybercriminals to hack or tamper.

Are NFTs Similar to Bitcoin?

While both NFTs and Bitcoin falls under cryptocurrencies, but what makes NFTs different is that it cannot be used directly as a medium for commercial transactions.

Bitcoin is fungible which means it can be traded or exchanged one for another. For example, the value of one bitcoin holds a value equivalent to another Bitcoin. However, this is not the case with NFTs.

Two NFTs are never identical, even if they happen to exist on the same platform, or for that matter even in the same collection. Think of it as a unique collectible card which can only be owned by one person at a time.

How Can You Buy or Sell NFTs?

Like any other forms of cryptocurrencies, NFTs can be bought and sold. In order to do that you can install Metamask, a digital wallet for Ethereum – the second most popular cryptocurrency after Bitcoin.

After installing Metamask, you can buy Ethereum. Now, when you visit any website that sells NFTs you can use the bought etherium to buy an NFT. You can also trade NFTs from cryptoexchange Uniswap by connecting your Metamask account.

What Is The Future of NFTs?

In India, NFT is fairly a new concept and experts believe that it might take some time for this trend to get popular.

Speaking to Livemint, Rahul Pagidipati,CEO, ZebPay said, “India has lakhs of traditional artisans who could benefit from using NFTs to verify their original work. Add to that the growing number of artists working in digital media who can protect their creations with a tokenised “wrapper" to show that it’s an original work”.

With time, NFTs will become popular as mainstream artists have started to discover the unique cryptocurrency.

What Are Some of the Most Expensive NFTs?

NFTs have taken the cryptomarket by storm, especially after Dorsey decided to sell his first ever made tweet. Here are the five most expensive NFTs:

• CGI artist Mike Inkelmann sold 21 of his works for 3.5 million dollars.
• Rick and Morty images were sold for 2.3 million dollars.
• Popular blockchain game Axie was sold for 1.5 million dollars
• NFT representing character of CryptoPunks were sold for 7,50,000 dollars