Crypto series: What are NFTs?

Learn about NFTs, NFT art, and how they can be used for Tigray relief

NFT stands for 'non-fungible token'. Non-fungible

means that something is unique and can't be
replaced. By contrast, physical money and
cryptocurrencies are fungible, which means they
can be traded or exchanged for one another.

A Non-fungible token (NFT) is a unique digital

identifier that cannot be copied, substituted, or
subdivided, that is recorded in a blockchain, and
that is used to certify ownership and authenticity.

Many NFTs can only be purchased with ether

(ETH), so owning some of this cryptocurrency and
storing it in digital wallet —is usually the first step.
You can purchase NFTs via any of the online NFT
marketplaces, including OpenSea, Rarible, and
SuperRare.

How Does NFT Work?

Non-fungible tokens, often referred to as NFTs, are blockchain-based tokens that each
represent a unique asset like a piece of art, digital content, or media. An NFT can be thought of
as an irrevocable digital certificate of ownership and authenticity for a given asset, whether
digital or physical.

NFTs are digital assets that are stored and verified on a blockchain. This makes them unique as
each NFT has a code different from any other NFT.

To understand how nonfungible tokens work, we must first look at how they are created. NFTs
are made through contract-enabled blockchains using specific tools and support.
 Crypto series: What are NFTs?
Ethereum was the first blockchain to be used for this purpose, but now EOS, NEO and other
platforms also include NFT standards. In addition, these tokens and their accompanying smart
contracts allow for the expansion of detailed information, such as the owner’s identity.

This system allows tracking and verifying NFT ownership, which is essential for many use cases.
For example, an NFT representing a digital collectible could be traded or sold with the
confidence that its new owner is the only person with access to it.

NFTs are widely unknown in Ethiopia, and those having some knowledge may be misinformed.

...

The Merge by PAK is the most expensive NFT sold for a whopping 91.8 million dollars. A picture
of the first tweet of the former Twitter CEO Jack Dorsey has sold for 2.9 million dollars. This
sounds bizarre; all this money is for an essential piece of a digital image. You might even say,
this is a total waste of time, and how would this benefit us here in Ethiopia? My answer would
be ‘it depends’. I know it sounds like I am hedging but trust me, I do have a legitimate reason
for my opinions. Allow me to shine a light on the wild world of NFTs.

NFT stands for Non-fungible token. Fungible means it is replaceable or interchangeable. For
example, if person A has a hundred birr note, they can exchange that with two fifty birr notes
meaning that a hundred birr note is fungible. So, the meaning of NFT from its name is a non-
 Crypto series: What are NFTs?
interchangeable unique token. This is not strictly true, however. I would like you to see
fungibility as a scale ranging from very fungible to almost can’t be fungible.

As cash would be near the very fungible side of the scale, NFTs would be near the opposite end.
They use blockchain technology to show the owner of digital artwork. Even if someone copies
the artwork, the original and its owner can be identified. The essential thing to remember is
that NFTs can be linked to a specific digital item. NFTs can be tied to everything from digital art
to games, music, and even movies, making them obscure.

NFTs in Ethiopia's problems

NFTs are widely unknown in Ethiopia, and
those having some knowledge may be
misinformed. The biggest hurdle in adopting
this new technology is the lack of a readily
available and easily accessible payment
system. Buying an NFT can be very difficult.
In Ethiopia, internet-based payment systems
are not widespread. The use of
cryptocurrency wallets is a rarity, and now,
even being illegal. These difficulties can and
will hinder the use of NFTs.

NFTs began as a method to appreciate artists. However, most of them are now produced by
unscrupulous people who see them as an easy way to make money. Among the most insane
ideas is the notion of purchasing
digital land. Ann actual site
called 'next earth' has plotted
out the entire world and will
allow visitors to buy any portion
of land they want for the right
money. People have flocked to
this website with the simple
 Crypto series: What are NFTs?
logic that physical land is worth so much now, and if the world continues its evolution towards
digital, then digital land will be valuable. They are overlooking the fact that tangible land serves
a use like actually living on it, while digital land is pretty much useless.

NFTs in Ethiopia's opportunities

I may have sounded all doom and gloom, but there is still a massive opportunity to capitalize on
the market of NFTs. The upcoming generation is far more open to innovative ideas and new
practices.

So, I believe, through time, their use will grow. NFTs can present countless opportunities for
artists in Ethiopia. It will give them the platform to show their arts to a larger audience while
generating income. The growing demand for graphic designers in the market will also provide
artists a chance to showcase their skills using NFTs.