NFT or Non-fungible tokens are digital assets that you can own. They are different types of items usually digital but can also be tangible that has some sort of collectible value to the consumer.
In a way it is a digital artwork but NFTs can range from anything like a Facebook post or virtual real estate or even digital sneakers. However, NFT artworks are much more interesting than other forms of artwork. For instance NFTs are easily verifiable. The nft networks make it impossible to fake an artwork.
As you may be well aware of, counterfeit artwork is a growing business all over the world. But when you look at NFT artworks, you can look at its network and trace it back to the original issuer. So making a fake NFT artwork is pointless and next to impossible.
This way each NFT artwork is unique and can be easily traced or verified for authenticity. You should also note even when the owner’s name is visible through the block chain, anyone can still share it.
How NFT networks are different from regular crypto currencies
Since NFTs are individual items that are completely unique, you cannot trade it like any other crypto currencies. You cannot trade or exchange your NFT for two other NFTs. Even if two NFTs exist on the same platform or collection, they cannot be exchanged.
However, they are compatible with broader ecosystem since they are usually developed standard Ethereum blueprints. This means they can be bought using different cryptocurrencies linked to different wallets.
In fact different wallet services like Meta Mask, Eos, etc. have come up with their own NFT token standards so that developers build and host NFTs on the company’s block chain networks.
Now you can acquire indestructible assets
While most physical artwork can get damaged or lost, nft networks are indestructible. This is because the data is stored on the block chain where the tokens cannot be removed or replicated. Since the tokens are immutable, it is you who is actual owner of the artwork and not the company that creates the NFT.
So buying a NFT is very different from say buying a song from a cloud host where the seller is still in possession of the music and you only get to listen or stream it on your device. The NFT cannot be divided into smaller units. Unlike bitcoins bitcoins that can be divided into smaller denominations and traded, NFTs are actually indivisible.
The growing popularity of NFTs
Recently NFT artwork have become very popular because of different collectors. Millions of dollars have been spent on NFTs since its inception. They are especially popular among gamer who like to collect different items.
NFTs give them immutable ownership of these items that they can horde as well as sell to make profits. Different hero cards, avatars and costumes or skins are acquired by gamer as NFTs from the game and then sold separately to other players. Even artists are now using NFTs to sell their art.
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