NFTs in Laymans Language
A cryptocurrency is a digital or virtual currency that is protected by cryptography, making counterfeiting and double-spending nearly impossible. Many cryptocurrencies are based on blockchain technology, which is a digital database enforced by a distributed network of computers.
NFT is a type of cryptocurrency like Bitcoin but Bitcoin is fungible. You may wonder what fungible means so let me explain it to you. Fungible means the ability of goods or assets to be interchanged with other individual goods or assets of the same type. Non fungible tokens are the opposite. They cannot be exchanged. They can be used to prove ownership of digital items such as game skins all the way up to physical properties. They can represent everything from virtual land parcels to artworks, to ownership licenses.
Some Facts about NFTs:
NFTs (Non-Fungible Tokens) are digital assets that are proven to be one-of-a-kind, resulting in digital scarcity.
An NFT is an asset verified using blockchain technology.
They can't be separated or duplicated.
They can be used for digital collectibles, music, artwork, and in-game tokens.
Non-fungible tokens, or NFTs, are digital assets that are indivisible and provably unique.
They can be used to represent both tangible and intangible items.
Each NFT is unique due to its information within it, and as a result, they cannot be directly replaced by another token.
Since no two NFTs are identical, they cannot be swapped. NFT’s cannot be exchanged like banknotes.
EACH NFT IS UNIQUE.
Non-fungible tokens are not traded on standard cryptocurrency exchanges, instead they are bought or sold on digital marketplaces like Openbazaar or Decentraland’s LAND marketplace.
Platforms for NFTs:
Cryptograph: Recently, Paris Hilton has sold her digital painting of a cat for $17,000. This was done through the charity digital art site Cryptograph.
KnownOrigin: It is a platform which allows artists to showcase and sell their rare digital artwork and collectables.
Bitcoin Origins: It is a highly scarce series of digital collectible cards immortalizing the most significant moments in Bitcoin’s history.
Opensea: The world’s largest digital marketplace for crypto collectibles and non-fungible tokens (NFTs), including ERC721 and ERC1155 assets. Buy, sell, and discover exclusive digital assets like Axies, ENS names, CryptoKitties, Decentraland, and more.
This is all you need to know about NFTs if you’re new to the cryptoworld! I hope you understood the basics of NFT. Is there anything else you would like us to explore? Leave your request in the comments below.
