NFTs are a relatively new addition to the blockchain ecosystem. These are tokenized digital assets of varying natures that can be exclusively held and transacted by an individual.
In this article, we will look into what an NFT is, How it works, and how to gift it to someone.
In the section below we will look in detail at what NFTs are and how they function.
What Are NFTs?
Non-fungible tokens, or NFTs, can be any digital item like artwork, virtual real estate, memes, videos, sports cards, etc.
These items can be bought or sold online after they have been tokenized.
The person with the certificate for ownership will be the one having exclusive rights to whatever digital item has been sold in the NFT market space.
Some of the most popular NFT projects include Beeple, CryptoPunks, Bored Ape Yacht Club, Adzuki Bean, CryptoKitties, and so on.
The NFT named “The Merge” was by far the most expensive NFT ever sold in a public setting. It was created by a digital artist named PAK.
The Merge was sold for about $91,806,516 just within 48 hours from its launch on December 31, 2021
The Merge was sold on one of the popular NFT marketplace called Nifty Gateway.
Now that we have looked at some of the relevant details regarding NFT tokens we will now look at how they work in the following section.
How Do NFTs Work?
These are a few of the details that one must know related to the workings of NFTs
NFTs work by focusing on their characteristic feature of nonfungibility which provides exclusive ownership of the digital asset to the holder of the asset.
The name of the holder of a particular NFT is registered and stored on a shared ledger in the blockchain.
This lets everyone know that you are the owner of the NFT and the only one with the right to trade with that particular NFT.
Now that we have looked at how NFTs work let us now look at where you can buy an NFT from and how to gift an NFT to someone else in the following two sections.
Which Are The Popular NFT Marketplaces
NFTs of all natures including picture NFT, video NFT, Animated NFTs, etc can be bought and traded on websites like OpenSea, Rarible, Nifty gateway, Axie Infinity, Binance, MakersPlace, and so on.
The most popular NFT marketplace among the group is OpenSea.
Opensea offers options for its users to deal with all sorts of digital assets including NFTs and is completely free to sign up.
In the next section let us look at how we can gift an NFT to someone and the steps involved in the process
How Do You Gift An NFT To Someone?
The process of gifting an NFT is pretty simple and straightforward.
The only requirement that both the party needs to send or receive an NFT are wallets compatible with NFTs and a proper internet connection.
If both of these requirements are fulfilled the following are the steps that you should follow in order to gift an NFT:
- Obtain the recipient’s public wallet address: The public wallet address also known as the public key is equivalent to the bank account number that you obtain from someone if you want to send them money. The public key of the recipient should be verified by both the parties transacting.
- Afterward, navigate to the option in your NFT marketplace that shows the field to enter the public key of the recipient. It is important that you enter the right wallet address of the recipient as blockchain transactions such as these are often irreversible and carry a transaction fee.
- In the next step enter the key and choose the NFTs that you want to transfer to the person.
- As the final step of the process continue with the transfer and confirm that the NFT has been sent from your wallet and received in the intended recipient’s wallet.
These are the steps that one should follow in order to gift NFTs to someone.
Final Thoughts
NFTs can be a valuable addition to your wallet and can mean a lot to the person holding the coin or the person in want of the coin.
Their varying forms of existence can be in the form of your favorite song, photos from the past, or anything that might mean something special to oneself or to others.
Therefore it can be said that the act of gifting a thoughtful NFT to a loved one can mean a lot for you as well as the one receiving the gift.
The details given in this article will help you in making sure that you can carry out the process smoothly and seamlessly.
