You have probably seen posts on NFT either on the internet or heard some groups of people talk about it and you wonder what’s this NFT about. Take your seat human as we dive into the ocean of thewebgate’s knowledge about NFT.
What is NFT?
First, it will be impolite not to tell you the full meaning of the acronym NFT. It stands for Non-Fungible token. For something to be non-fungible then something has to be fungible right? So what’s fungible and non-fungible.
According to the Merriam-Webster dictionary, Fungible is something that another equal part or quantity may replace one part or quantity in paying a debt or settling an account. Anything capable of mutual substitution. Money is a perfect example of a Fungible token. Cryptocurrencies like Bitcoin and Dogecoin are also perfect examples.
Now let us not get distracted and focus on the topic. What is a Non-fungible token? Non-fungible are interchangeable, unique, and not flexible components of data stored on the blockchain. They are not cryptocurrencies. They are digital assets that represent real-world objects. Examples of NFTs are:
- An in-game item
- A coupon ticket.
- A domain name.
- An $Essay.
How do NFTs work or operate?
A Non Fungible token is connected to an artwork, its originality is verified and assigned to an owner. An NFT can only have an owner at a time. Ownership is managed through a unique ID that cannot be cloned. An NFT could be a video, GIF, music, signatures, or legal documents. To know more about how they work, read how Non-fungible Tokens work.
Reasons for NFTs
- They let us tokenize art, collectibles, and even real estate.
- We use NFTs to buy and sell digital artwork
- Digital content creation
- We can use NFTs for investments and as collateral.
- We can also use NFTs to buy physical items like cars, houses, or anything.