What Is NFT ( Non Fungible Token) ?

Non-fungible tokens or NFTs are cryptographic assets on blockchain with unique and distinct identification codes and metadata 

that differentiate them from each other. Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. 

NFTs are different from fungible tokens like cryptocurrencies, which are identical and similar to each other and, therefore, can be used as a medium for commercial transactions.

The idea for NFTs, aka nifties, emerged alongside blockchain technology in 2014, but did not become famous until the emergence of the Ethereum cryptocurrency, which brought a system for the creation and storage of non-fungible tokens.

What does fungible and non-fungible mean? 

Fungible goods are items that are interchangeable because they are identical to each other for practical purposes. 

Imagine you have a one-euro coin and you exchange it for another one-euro coin. It doesn't matter because they all have the same value, i.e. they are fungible. 

This goes true if you have bought a digital token, for example a BTC (bitcoin). 

Non fungible tokens are unique. The difference with non-fungible tokens is that they are unique and smart contracts allow you to identify them as such.

These digitally unique assets are attached to a distinct value with a certificate of authenticity, so even though it exists online, the asset can't be easily and endlessly duplicated.

To create an NFT, simply use platforms such as OpenSea or Mintable, where the artist uploads the digital file and creates a smart contract associated with it. NFTs are listed on these platforms and can be accessed by potential buyers. To buy an NFT it is necessary to have an account with cryptocurrencies, specifically Ethereum, from where a transfer is made to the creator and in exchange the property is transferred.

Use Case of NFT:

Perhaps the most popular use case for NFTs is that of cryptokitties. It was launched in November 2017, cryptokitties are digital representations of cats with unique identifications on Ethereum’s blockchain. 

Each kitty is unique and distinct and has a price in ether. They reproduce among themselves and produce new offspring, which have different attributes and valuations as compared to their parents. Within a few short weeks of being launched, cryptokitties racked up a fan base that spent $20 million worth of ether purchasing, feeding, and nurturing them. Some enthusiasts even spent upwards of $100,000 on the effort.

Creating an NFT:

To create an NFT, simply use platforms such as OpenSea or Mintable, where the artist uploads the digital file and creates a smart contract associated with it. NFTs are listed on these platforms and can be accessed by potential buyers. To buy an NFT it is necessary to have an account with cryptocurrencies, specifically Ethereum, from where a transfer is made to the creator and in exchange the property is transferred.





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