June 26, 2022
NFT

What are NFTs?

NFTs (Non-Fungible Token)

NFT

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

NFT

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

Is NFT investing safe?

The major risk for NFT investors is that their investments, such as real estate, fine art, and other cryptocurrencies, will lose value.
Token holders may find themselves stranded with their tokens if the popularity of NFTs declines and people stop wanting to buy them.

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