NFTs (Non-Fungible Token)
A NFT or non fungible token is a data that is added to a specific to make it unique. This file can be of any type like image, video, text or any physical item. NFT essentially means that a coded digital file can be differentiated from other digital copies. This technology is also called decentralized certification.
Difference between Physical & online NFTs
Physical NFTs Online NFTs
1)The value of something changes depending The value of something changes depending on
on how much other people are prepared to pay for it. how much other people are prepared to pay for it.
2) Holographic stickers, unique paper, and other hidden Unique data is added to digital work as a security
elements are among the security features. element.
3) You can instantly purchase, sell, trade, and give cards You can purchase, sell, trade, or donate NFTs to
to anyone. anyone over the internet, but the transaction
must be verified by a network of computers.
How do NFTs work?
NFT and ethereum blockchain are same we say that both are part of each other. Ethereum is a cryptocurrency which is used to buy NFT so both are related to each other.
Example of NFTs
The owner of this NFT tweet “ROCK THREAD: Why I spent $46,300/15 ETH for a PNG file of a grey pet rock and why I think it could end up being one of the best investments I make since getting into crypto. A thread (continued) #EtherRock #EtherRocks“
Uses of NFTs
Some of the uses of NFTs are
- Digital content
- Gaming items
- Domain names
- Physical items
- Investments and collateral