NFT stands for non-fungible token. Non-fungible is an economic term that you could use to describe things like your art, audio, video and games. In other word you can say NFT is a digital asset that represents real type of entity like art, video, audio and any games. NFTs give a person proof of ownership. The NFT concept has been around for several years now, but it was in 2021 when NFTs became the craze and a mainstream media.
Fungible vs non-Fungible
Fungible Assets: Fungible tokens are divisible assets which are not unique and can be readily exchanged for another assets
like money, with money, you can swap a 100 Rs note for 5, 20 Rs notes and it will have the same value.
Non-Fungible Assets: It has unique properties so it can't be interchanged with something else. All tokens of each type are identical in specification, and each token have unique identity. NFT can be used to represent ownership of unique items.
How Is an NFT Different from Cryptocurrency?
Both NFTs and cryptocurrencies use blockchain technology to create tokens. It’s generally built using the same kind of programming as cryptocurrency, like Bitcoin,Ethereum,Solana and others coin, but that’s where the similarity ends.
NFT backend build on blockchain, they are not cryptocurrencies themselves. Like INR, USD and other currencies, cryptocurrencies are fungible assets. If you trade any crypto against Alt coins both will have similar value. NFTs are a form of digital assets. While cryptocurrencies carry monetary value.
Some of big NFT announcements?
On March 23, Jack Dorsey’s first tweet ever posted on Twitter sold for $2.91 million to @sinaEstavi. It was purchased through online bidding process and Tron founder Justin Sun, offered $2 million.
Amitabh Bachchan to launch his own NFT collection in November
Recently Sunny Leoni has tweeted about own NFT launch
What do you get when you buy an NFT?
Since an NFT can only have one owner at one time, when you buy an NFT that time ownership assigns to you. You purchase the exclusive ownership of a particular digital asset. However, this doesn’t mean that you own the exclusive rights
How can we verify NFT ownership?
Since NFTs use decentralized distributed ledger that is called blockchain network so we can easily track by transaction ID (hash). The blockchain network contains the entire history of all of its ownerships.
Why would anybody buy a non-fungible token?
· The biggest use case of NFTs is the proof of ownership.
· If you like any artist painting and you don’t want anyone else to have buy the same painting, you can buy the NFT and own it digitally.
· For artist NFT can be revenue source. They can make more unique painting and sell them online.
· NFTs bring content creators from all fields into one ecosystem
· Most important of all, NFTs are indivisible and could not be distributed among multiple owners.
· There are multiple websites which are providing trading facility. Traders can buy and sell them when their price goes higher.
Concluding Lines
In the digital world, NFTs can present a viable solution for tokenizing ownership and property. Non-fungible tokens are undoubtedly one of the next big things in online commerce. Non-fungible tokens provide a clear advantage over fungible tokens in terms of security, unique identity and immutability. NFT trade could be a risky
About Author: Pushpendra Singh
Pushpendra Singh is a founder of SmartViewAi.com focusing on decentralized finance awareness and blockchain application and their respective markets. Coming from the world of IT, Pushpendra Singh understands and is familiar with the importance of blockchain technology/Defi/NFT. He has over 10 years of software development experience in industries ranging from supply chain management, centralized finance system and cryptocurrency market. In his spare time, he enjoys making blockchain awareness YouTube live videos in Hindi. His YouTube channel has Millions of views monthly
Twitter https://twitter.com/pushpendrakum
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Disclaimer: No Deccan Chronicle journalist was involved in creating this content. The group also takes no responsibility for this content.
