What are NFTs? | Get Started with Bitcoin.com (2024)

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What are NFTs? | Get Started with Bitcoin.com? ›

NFT stands for non-fungible token. These tokens are digital assets using the same basic technology that cryptocurrencies such as Bitcoin and Ethereum use to create digital scarcity.

The first NFT, "Quantum," was minted in 2014 on the Namecoin blockchain by Kevin McCoy. However, the full potential of NFTs was realized with the Ethereum blockchain, which provided a more reliable and accessible platform for launching NFT projects.

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Gamma.io. Gamma is the leading open marketplace for purchasing Bitcoin-secured NFTs. Gamma's collections include more than just digital art.

Non-Fungible Tokens (NFTs) are unique digital assets stored and managed on a blockchain, a decentralized digital ledger technology. Each NFT is distinct and cannot be replicated, making it one-of-a-kind.

A non-fungible token (NFT) is a unique digital identifier that is recorded on a blockchain and is used to certify ownership and authenticity. It cannot be copied, substituted, or subdivided. The ownership of an NFT is recorded in the blockchain and can be transferred by the owner, allowing NFTs to be sold and traded.

Bitcoin Ordinals NFTs are based on the Ordinal theory through the Ordinals protocol, which aims to give each satoshi unique identities, allowing them to be tracked, transferred, and imbued with individual meanings through inscriptions. This allows one satoshi to be different from another, hence becoming non-fungible.

If you had bought $1,000 worth of bitcoin 10 years ago, it would have grown by 7,644% and be worth around $77,443 as of Feb. 14.

Investing $100 in Bitcoin alone is not likely to make you wealthy. The price of Bitcoin is highly volatile and can fluctuate significantly in short periods. While it is possible to see significant returns in a short time, it is also possible to lose a substantial amount just as quickly.

Can NFTs be built on Bitcoin? ›

Ordinals are means of creating Bitcoin NFTs by attaching data such as images, videos, and more to an individual satoshi on the base Bitcoin blockchain. Launched on Bitcoin mainnet by developer Casey Rodarmor on January 20, 2023, ordinal NFTs are simply the latest way to create NFTs on Bitcoin.

The Bottom Line. Investing in NFTs has just as many benefits as downsides. In general, NFTs should be purchased if the tokenized asset has an established market and interests you—otherwise, it's unlikely the NFT will experience price appreciation and you will be happy owning it following your purchase.

Nearly all of the NFTs on the market today are reportedly worthless.

Gamers buy NFTs for various reasons too, perhaps to upgrade their gameplay or to own a valuable in-game item. Most NFT projects now also offer special perks such as utility, community benefits, merchandise, and more.

After NFTs are put on a blockchain, which acts as a digital ledger, they can't be copied. An NFT carries a unique digital certificate to prove ownership. You can make your own NFT out of any digital format, such as audio, video, or GIF. Most people creating NFT art start with digital 2D artwork.

Conceived in 2017 by software developers and artists Matt Hall and John Watkinson, CryptoPunks were one of the first NFTs (non-fungible tokens) minted on the Ethereum blockchain. Comprising 10,000 distinct 24x24 pixel art characters, CryptoPunks challenged conventional notions of digital identity.

In ordinal theory, individual satoshis are numbered in the order that they are mined. The first ordinal is the first satoshi ever minted, dating back all the way to 2008. When a satoshi is transferred, the order is preserved through a first-in, first-out system based on the order of transactions.

2015 – Terra Nullius. According to research done by Adam McBride, Terra Nullius was the first NFT on ETH. Defined as land that is legally deemed to be unoccupied or uninhabited, Terra Nullius created a new frontier for investors.

On 3 January 2009, the bitcoin network was created when Nakamoto mined the starting block of the chain, known as the genesis block. Embedded in this block was the text "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks", which is the date and headline of an issue of The Times newspaper.