Non-Fungible Token (NFT) is taking up a lot of hype on the internet these days. NFTs are tokens that we can use to represent ownership of unique items NFT is like a digital asset that can be in the forms of images, videos, gifs, domain names, memes, audio, music, video games, trading cards, and many more that is unique and can’t be replaced by something else. This unit of data is stored in the blockchain in a form of a digital ledger.
NFTs are not cryptocurrencies because they are non-fungible like Bitcoin, Ethereum, or Dogecoin. Both NFTs and cryptocurrencies use the same technology to store the ownership of an item i.e., Blockchain.
What is non-Fungible?
Non-fungible is not very popular in economics fungibility is the characteristic of goods or commodities where the equal unit is interchangeable and indistinguishable from each other like with most concepts fungibility is best explained with an example of money such as US dollar is a good example of something fungible and a limited-edition basketball card is an example of a non-fungible.
How does NFT work?
NFT uses blockchain technology to store the owner of the NFT, there is a public ledger that records all the transactions that occur. The storing method is the same as the way of cryptocurrencies. NFTs use Ethereum Blockchain technology, although other blockchains also support them. NFTs are physically collector’s items, only digital. For example, if a user buys an NFT of a painting, instead of getting a physical painting the owner gets the digital copy of the file. They also get exclusive ownership rights, owners have only one owner at a time.
Where Can You Buy NFT from?
- Axie Marketplace
- Larva Labs/CryptoPunks
- NBA Top Shot Marketplace
- Nifty Gateway
- Theta Drop
Is it a Good Idea to buy NFT?
NFT is just blooming into the internet, so investing a lot into NFT is probably not a good idea but if you are enthusiastic, I will you to invest a very small amount of money that is not heavy for your pocket.
What is the future of NFT?
The world has become digital, so it is obese that we need a way to sell digital goods and NFT is the option. So, looking at the current situation NFT will grow a lot in the coming future, and investing in it will not go in vain.