Take our NFT Quiz to see how much you know about NFTs and what you still may need to master.
It seems that everyone is talking about NFTs these days. Learning about NFT technology is easy, but really understanding NFTs seems pretty difficult. And more, it seems like NFT knowledge changes every day.
At RareCircles we are passionate about NFT education. We are willing to wager that you understand NFTs better than you think you do. So instead of a standard NFT FAQ, we've put together this interactive NFT quiz.
Test what you know, and see what you may need to review!
What does NFT stand for?
NFT stands for Non-Fungible Token.
If something is fungible, it can be swapped for another item of identical value. A dollar bill is fungible. A Euro coin is fungible. They can be exchanged for one another and the value is identical.
A non-fungible asset is anything else, from real estate to baseball cards to art. (You can’t swap a Rembrandt for a Warhol and call it a day).
As we explain in our ABCs of NFTs blog, “A non-fungible token is a digital certificate of authenticity, which functions as a property deed or receipt — it proves that ownership of a certain digital item is unique to one buyer. The NFT can represent anything: photography, animation, music, literature, and so on.”
How do you know if an NFT is original?
Check the ownership record in the blockchain.
Because NFTs are bought and sold using blockchain technology, each sale creates a verifiable record that can prove ownership
What is a blockchain?
As we explain in our blog, “Blockchains consist of individual data records (called blocks, no surprise there) that can record just about any data, including an NFT.”
Each data record (block) contains a unique code called a hash, linked to the block before it, creating an unbreakable chain. Because of those links, and because the data is “distributed,” (i.e., dispersed among all users of the blockchain), it’s essentially tamper-proof.
That means that a buyer’s stamp of ownership is permanent, and so is the identity of the NFT’s creator. This means that the creator of an NFT can receive a royalty every time the NFT is sold, at any point in the future.
What is the most popular blockchain network for NFTs to be recorded on?
At the moment, the Ethereum Blockchain is the most popular record for NFT transactions.
What can be sold using NFTs?
While technically, anything could be sold using NFT technology, they are most commonly used to sell
- Digital art
- Digital collectibles
- Video game items and assets
- Digital videos
- Access to exclusive online clubs and meeting rooms (like Bored Ape Yacht Club)
With that said, it is becoming more common to use NFTs to sell real-world items such as sports memorabilia, access to concerts (Coachella is working on this), or exclusive benefits at restaurants.
Forbes explains that restaurant Chotto Matte, for example, “ recently announced it would release its first NFT this April. Dubbed “The Founder,” the NFT will be a one-time-release collectible chip card that grants its owner exclusive membership access with an array of bespoke benefits redeemable all over the world.“
There is also a movement to use NFTs to sell concert tickets. Business Today says, “Tickets for events can be minted now on blockchain platforms and then can be auctioned off by the organizers. NFT tickets can also be sold at a fixed price. This would significantly reduce forgeries.”
Can anyone make an NFT?
Technically, yes! Anyone who can create a digital asset, navigate the technology, and pay any associated costs can create an NFT. And if you understand how to create NFTs, and how to sell NFTs, you can also put those NTFs to work building your brand.
This is where RareCircles NFT Masterclass comes in. We can help you master this whole process.
Why are NFTs worth so much?
NFTs are worth however much buyers are willing to pay. Just like selling antiques at an auction house, if nobody will pay the price, then that value was incorrect. There are a number of things that drive the price of NFTs including
- The popularity of the creator
- The overall trendiness of the work
- The incentives that come with the sale
- The perceived resale value
- The exclusivity of ownership
- The utility of an unalterable digital asset impossible to hack (which has remarkable implications for the future)
Is it hard to learn more about NFTs?
This question should be the easiest of all (we gave you a clue earlier in the quiz). It is NOT hard to learn more about NFTs and how they can help you build and grow a community of fans for your brand.
Want to learn more about NFTs? Sign up for our master class today.