NFT Explained In 5 Minutes What Is NFT? - Non Fungible Token NFT Crypto By Abdul Raheem Tech
meet susan an
aspiring painter she wishes to conduct an online painting exhibition for all
her digital artworks however as the exhibition is online she is worried that
her paintings won't be secure as anyone could easily forge or replicate them her
friend mark came to her rescue with an idea of nft he suggested that susan
could buy nfts for all her paintings as nfts are trustworthy easily transferable
and will also maintain her ownership rights on her artworks susan had no idea
what nfts were so mark stepped ahead and explained it to her nfts turn your
digital assets into one of a kind by creating a unique digital signature which
defines the ownership of your assets and that can be bought and sold for real money
cryptocurrency or any other asset like a non-fungible token aka nft
non-fungible tokens means that they are not interchangeable and each of them
represents unique assets owned by a specific person on the other hand fungible
tokens are interchangeable and can be divided into smaller units to form the
same value for example a one hundred dollar bill is fungible as you can
exchange it with five twenty dollar bills or two fifty dollar bills but the
painting of the last supper is non-fungible as it cannot be generated in bulk even
if it is copied it will not be authentic each nft contains distinguishable information
like who owns the digital asset and who sold it making them distinct and easily
verifiable as it is impossible to forge such a certificate it will secure her painting's
originality after learning what nft is susan was curious to know how exactly
nft nft basically creates a blockchain-based digital certificate for your
digital collectibles including games music art and many more this certificate gives
your artwork a unique identity the underlying technology and the programming
language used by nfts are the same as other cryptocurrencies such as blockchain
and the programming language eth or script nft majorly exists on ethereum blockchain
a distributed public ledger that records all the transactions however nft is
quite different from these cryptocurrencies bitcoin and ethereum are fungible
tokens which means if you trade bitcoin or ethereum for one another you will
have the same value or item in return basically money on the other hand nft is
a unique token therefore if you try to trade it you may end up with something
completely different in your hands crypto punks is a remarkable example of nft it
enables you to buy sell and store 10 000 collectibles with the proof of ownership
being stored on the ethereum blockchain after exploring helen ft's work susan was
convinced and bought nfts for all her paintings due to this her artworks were
secured from any kind of forgery and also gave her artworks a particular value this
contributed to increased sales too as everyone was easily able to buy the artwork
without any fear all in all her exhibition was a complete success similarly nft
has proved itself to be a boon in the lives of many others like jack dorsey the
ceo and co-founder of twitter with his very first and famous tweet just setting
up my twitter and vignesh sandarsen famously known as medicovan who bought 69.3
million dollars worth of nft art on people owing to its increasing popularity people
are now willing to pay hundreds of thousands of dollars for nfts nft has
enhanced media exposure and special perks for aspiring artists like susan on
social media this popularity of nft creates new opportunities for new art
platforms motivating people to buy art from internet platforms and promoting copyright
or originality of digital assets so here is a question for you what makes any
item non-fungible a exchangeability b unique digital signature c trade-ability
d distributed public ledger please give it a thought and drop your answers in
the comments section below three lucky winners will receive amazon gift
vouchers many experts in the crypto industry say that around 40 of new crypto
users will use nfts as their entry point as a result of its growing popularity nft
could represent a more significant part of the digital economy in the future we
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