A look into Non-fungible tokens in an easy-to-understand manner!
NFTs stands for Non-Fungible Tokens
A fungible asset is something with units that can be readily exchanged. Like with money, you can swap a 100 rupee note for two fifty rupees notes and both parties would be happy. However, with a non-fungible asset, this does not hold true. It is unique and cannot be exchanged. It is one of its kind. Think like a Kohinoor. No two NFTs are identical whereas the booming bitcoins are fungible which means one bitcoin can be traded for another.
With digital art pieces, the problem would always be that you couldn’t prove ownership of the piece and they can be easily duplicated multiple times. With NFTs the digital world can suddenly be monetized to a new level.
NFTs are "one-of-a-kind" assets in the digital world that can be bought and sold like any other piece of property, but they have no tangible/physical form of their own.
Due to new blockchain technology, the buyer of the NFT owns a "token" that proves they own the work.
Each NFT contains data that differentiates it from any other NFT, and such data cannot be replicated, making the creation and circulation of fake collectibles pointless as each item can be traced back to its original issuer. NFTs are completely unique and cannot be changed, removed, or destroyed because the data of an NFT, similarly to Bitcoin, is stored on the blockchain.
Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.
NFTs are now available in the form of collectible sports cards to virtual real estate to digital sneakers to even tweets and youtube videos.
Twitter founder Jack Dorsey's first-ever tweet has been sold for the equivalent of $2.9m (£2.1m) to a Malaysia-based businessman.
Everyone wants their wedding ring to be unique, and what’s more unique than an NFT? In comparison to conventional wedding rings that lose value with wear and tear, and NFT is expected to increase in value over time.
At least that’s what a couple from California, Rebecca Rose and Peter Kacherginsky, believe. They got married in March earlier this year and exchanged virtual rings on their smartphone.
The excitement around NFTs surged in late 2020 and early 2021, they’re officially been around since at least 2017.
And with how it's evolving the market of NFTs looks to be going only up from here. It has endless possibilities and for teens shows how quickly the market is changing and to survive we need to adapt. It shows high risk equals high reward but the new trends also show how fast a trend can die down or completely crash and burn.
Two videos I highly recommend to get a deeper understanding of NFTs are from the creators Colin and Samir and here are the links.
Confused about NFTs? Here's all you need to know | Creative ...
https://www.creativebloq.com › features › what-are-nfts
NFTs explained: what they are, and why they're suddenly ...
https://www.theverge.com › nft-explainer-what-is-block...
What are NFTs and why are some worth millions? - BBC News
https://www.bbc.com › news › technology-56371912
Writer - Dyumna
Editor - Khushi Wadhwani
Illustrations and Graphics - Jhem Picache