A non-fungible token(NFT) is a digital token created using blockchain technology. NFTs represent a wide range of tangible and non tangible items .NFTs ensure digital ownership and as well as real world value.What this means basically is that when you purchase an nft you are buying digital ownership from it creator.
Of course we can not fully understand NFTs without talking about tokens,NON-fungibles and blockchain.
What are tokens?
A TOKEN is a kind of cryptocurrency that is said to represent or can be exchnaged for an asset on the blockchain. TOKENS can be used to store value or for investment purposes.
NON-FUNGIBLES
Something is said to be non-fungible when it is unique or irreplaceable. For example a picasso artwork in the early 90s is fungible because it is one of a kind and rare to find.
BLOCKCHAINS
A Blockchain in layman's term is a huge chain of connected computers storing records or data of crypto transaction around the world.
NFTs are typically used to buy and sell artwork and can take the form of GIFs, tweets and can also be used to buy and sell digital art work. In reality we own a lot of non-fungible digital assets these includes online bank points, airline mileage points and in-game points and items which can be owned but we don't fully own them.
When it come to digital ownership, NFTs are the most favourable option. Due to blockchain a coordination for digital asset is given. thus giving owners full ownership of their properties.
NFTs are built on smart contracts, this contracts have specific information that makes every NFTs unique.
SOME EXAMPLES OF NFTs THAT HAVE SOLD FOR HUGE SUMS RECENTLY
On March 11,2021, digital artist Mike Winkelmann aka Beeple, sold a non-fungible token (NFT) artwork for $69m at a Christie's Auction.
19th February, a gif of Nyan Cat sold for more than $500,000.
Twitter CEO Jack Dorsey promoted an NFT of the first ever tweet with bids hitting $3million.
NFTS works are unique in the sense that they can be ''tokenized'' to create a digital certificate of ownership that can be bought and sold. Just like crypto-currency a record is stored in a shared ledger called the blockchain. The record cannot be forged because the ledger is being maintained by thousand of computers around the world
WHY DO NFTs HAVE VALUES?
NFTs have value through it shared believe it does not really matter if it is not backed by the government or it not a precious metal. These things have value because people believe they do.
PEOPLE WHO CAN SELL NFTS
Anybody can actually create and sells NFT for any amount it solely depends on the buyers purchasing power and this is because prices for NFTs are relative. However the main line of people that can create and sell NFTs for huge sums are artists, musicians, art creators or popular people basically.
SITES THAT SELL NFTs
WHY ARE NFTs LIMITATIONS
They are controversial because of the huge amount of energy they use which they say as an impact on the climate, which they say could have a real impact on the environment.
Also, if a person buys an NFT from an unreliable domain and it crashes the person looses Certificate ofownership of such NFT.
Anyways that is my time, i hope to write more on this topic soon so bear with me till then stay safe.
GOODBYE for now
30 august 2021
NFTs are going to be the future or are already the future of Art and culture... in just a few years when the market is now super comfortable with Blockchain and virtual Art piece....