What are NFTs? Everyone seems to be talking about them, and how
do you use them?
NFTs (Non-Fungible Tokens) are digital assets. These Tokens have unique information engraved into
them. No two NFTs
are the same, nor are they interchangeable.
Having two NFTs doesn't mean you can sum them up. It doesn't work like bitcoins.
Most NFTs are based on the Ethereum blockchain. They are tokens implemented as a smart contract.
Presently, everyone can
implement an NFT and create their platform for that.
NFT characteristics:
- Usually, NFTs are platform restricted (non-interoperable). NFT-type1 cannot be used in NFT-type2 platform.
- NFTs are indivisible
You may be aware of bitcoins consisting of multiple satoshis( fraction of one Bitcoin), while one NFT will always be one NFT - NFTs are indestructable
NFTs are tokens on a blockchain; they are immutable. Many art pieces are being sold through NFTs because the ownership of an NFT cannot be changed; you will have to overtake the entire blockchain to do so -
NFTs are traceable
While many bank transactions today may be untraceable, NFTs can be traced back to their origins. This feature is what makes it more secure.
NFTs are worthy because there is widespread demand for them. This concept is very similar to people
buying virtual skins
for their games with real money. Some people want to show off or possess something unique.
Many NFT platforms are rising, similar to how the world saw many companies coming up with their
coins/ tokens just when
BTC hit an all-time high. The creator of an NFT is ensured with a portion( of price) whenever an NFT
is sold/resold.
Creators can monetize their work while also ensuring the safety of the NFT they created for their
buyers.
Is NFT worthy?
Say you purchase a painting from a webstore. Usually, the webshops provide no verifiable guarantees,
whether you are the
only owner of that piece.
But if you buy an NFT, you can get such a guarantee. And if someone sold more NFT on the same work,
your NFT would still
be unique.
Rumours about NFT being a scam
Back when the internet came up, people said the same. Whenever there is a breakthrough in
technology, people hesitate to
implement it.
NFT is newer technology and is facing the same. Some artists are making money by selling NFTs of
their
Artwork.
