What are NFTs? A Beginner’s Guide to Meta
Update 29 September 2022 at 07:00 PT:
Ttoday we’re announcing that everyone on Facebook and Instagram in the US can now connect their wallets and share their digital collectibles. This includes the ability for people to cross-post digital collectibles that they own on both Facebook and Instagram. Additionally, anyone in the 100 countries where digital collectibles are available on Instagram can now access the feature.
Update 29 August 2022 at 09:00 PT:
Earlier this month we expanded digital collectibles on Instagram to 100 countries in Africa, Asia-Pacific, the Middle East and America. And now we’re giving people in the US the ability to share digital collectibles across both Facebook and Instagram.
Originally published on June 22, 2022 at 09:00 PT:
Creators today are using non-fungible tokens (NFTs) to take more control over their work, their relationships with their communities, and how they can monetize. And in the future, we believe NFTs will be decisive for how people will buy, use and share virtual objects and experiences. We recently announced a way for people to showcase NFTs digital collectiblesjust one of the new technologies we’re exploring as we build for the metaverse.
“NFT” can sometimes sound like a buzzword and you may be confused about how it works. So here are the basics:
What are NFTs?
NFT stands for non-fungible token. “Non-fungible” means that something is unique and cannot be replaced. Think of the Mona Lisa painting – there is only one in the world. NFTs are digital assets that represent things like art, virtual avatars, GIFs, videos, trading cards, and even memes.
So if NFTs are digital what’s stopping me from taking screenshots or downloading them?
Sure, you can take a screenshot of an NFT image, the same way you can take a picture of the original Mona Lisa. However, you are still not the original owner of the NFT or Mona Lisa.
Each NFT has a unique signature that verifies its authenticity and any transactions associated with it – who created it, who owns it, who sold it and for how much, etc. Creating an NFT is called minting. When a digital file is embossed, an NFT is generated and stored on a blockchain.
Blockchain technology provides a record of ownership on a public, distributed database that anyone can see. This record of ownership also enables the original creator to always be credited and paid royalties, no matter how many times an NFT is sold or who owns it. The history of ownership, from creator to current owner, is called provenanceand it’s a concept already in use in the art world.
How do I buy an NFT?
Most often, NFT transactions are made using cryptocurrency, but some sites allow you to use credit or debit cards. To buy NFTs with cryptocurrency, you need to set up a digital wallet. There are a variety of digital wallets available depending on where you live and which blockchains you want to use. For example, we are testing the ability for select creators and collectors on Instagram to showcase NFTs from compatible third-party wallets such as Rainbow, MetaMask, and Trust Wallet, with Coinbase Wallet, Dapper, and Phantom coming soon. Next, you need to connect your digital wallet to a third-party NFT marketplace, where you can browse and trade NFTs.
How do I create an NFT?
- Choose a unique digital asset (art, music, meme, etc.) you want to sell.
- Decide which blockchain technology you want to use.
- Set up your digital wallet.
- Select an NFT marketplace.
- Upload the file to the marketplace to create your NFT.
- Once you have your NFT, you can choose to keep it, sell it at a fixed price or by starting an auction, or give it away to your most loyal fans – just like a physical asset, there are many opportunities to deposit NFT. to use.
Why are some NFTs more valuable than others?
Just like works of art in the physical world, NFTs can be rare and valuable. Usually, when an NFT is sold on a marketplace, there is a bidding process where the price of the NFT is determined by how much demand there is for it.
Why are so many people talking about NFTs?
NFTs are an important aspect of the economic and community-building potential of the metaverse. We believe NFTs have the potential to be an important part of how we form our online identities, access new experiences, and engage with others in the metaverse. Over the next decade, we hope the metaverse will reach a billion people, host hundreds of billions of dollars of digital commerce, and support millions of jobs. It will of course benefit us as Meta, but most importantly, many other creators, developers and entrepreneurs as well.
What about the risks and challenges associated with NFT?
As with any new technology, there will be risks and challenges to navigate. We work to build our products in a responsible, sustainable and inclusive way from the ground up. It is critical that our early efforts in this space empower diverse voices, are safe and help protect people from fraud, and assess environmental impact. Learn more about how we tackle these challenges.
What’s next for Meta and NFT?
We are expands our test of digital collectibles on Instagram to more global creators and a handful more countries. Creators and collectors will be able to share their digital collectibles on Facebook and Instagram after we begin rolling out the feature on Facebook with select US creators at a later date.
Note: This post contains general information about non-fungible tokens (NFTs) for general educational purposes only. Information about NFTs may vary. You should always do your own research and be aware of any risks.
