An insight into NFTs
Do you have zero ideas about NFTs (Non-Fungible Tokens)? I’m pleased to tell you that you’re at the right place.
After seeing so many people asking different questions about the above topic, I decided to put up every basic thing needed for your Non-Fungible Token journey.
The good news is that this article would serve as a guide for both beginners in the space as well as professionals that understand the pros and cons of the NFT world. Most of this article would cater to beginners mostly and I’d love to discuss the basic concepts connected to this sector.
WHAT IS AN NFT?
A Non-Fungible Token (NFT) is a digital item that can be created, sold, or purchased on an open market, and owned and controlled by any individual user, without the permission or support of any centralized company. They are a one-of-a-kind digital asset that belongs to a single owner.
A Non Fungible Token is a single token that is encrypted on the blockchain network. As widely known, Bitcoin is a changeable coin and can be reprogrammed with the community consensus, but NFTs cannot be changed.
“ARE NFTS DIFFERENT FROM CRYPTOCURRENCIES”?
YES. NFTs are generally built using the same kind of programming as cryptocurrencies (like Bitcoin or Ethereum) but the similarity ends there.
Unlike physical money and cryptocurrencies, NFTs do not inherently possess monetary value — their existence is representative of items with varying monetary values instead (such as drawings, songs, videos, etc.). This makes them economically non-fungible, whereas cryptos like Bitcoin and Etherium are fungible (can be traded and has instinctive value).
HOW DOES NFT WORK?
Non-Fungible Tokens exist on a blockchain, which is a distributed public ledger that records transactions. You’re probably most familiar with blockchain as the underlying process that makes cryptocurrencies possible.
An NFT is created from digital objects that represent both tangible and intangible items, which includes:
• Art
• Music
• GIFs
• Videos
Even tweets count. How? The co-founder of Twitter, Jack Dorsey sold his first-ever tweet as an NFT for more than $2.9 million.