WHAT IS AN NFT ?WHY NFT IS EXPLODING GLOBALLY ?

WHAT IS AN NFT ?

An NFT (Non-Fungible Token) is a representation of a digital asset that is unique and can be traded.

NFTs prove the authenticity as well as the ownership of assets and goods because the data containing these forms of identification is stored immutably on the blockchain.

Fungible vs. Non-Fungible:

Fungible:

If an item is fungible, then it can be substituted or exchanged for any similar item. Fiat currencies, like the US dollar, contain fungible units. A one-dollar bill can be exchanged for any other dollar bill. Cryptocurrency tokens like Bitcoin, Ethereum, and Doge are all fungible because one token can be exchanged for any other token of the same currency. The only thing that changes is a record on the blockchain registering the transaction. Many Fungible Tokens are minted to an Ethereum Standard called ERC20.

Non-Fungible:

A non-fungible asset, therefore, has the opposite characteristics to this definition: they are unique, irreplaceable, and non-interchangeable. One physical example of a non-fungible asset could be a plane ticket. While they look the same as other tickets, each one has different passenger names, destinations, departure times, and seat numbers. Many Non-Fungible Tokens are minted to an Ethereum Standard called ERC721 and ERC1155.

HOW DOES IT WORK?

At the comprehensive level, most NFTs are part of the atrium blockchain. Atrium is an encrypted currency, such as bitcoin or dogecoin. Still, its blockchain also supports these NFTs and stores additional information that makes them different from, for example, an ETH coin. It is worth noting that other blockchains can implement their own NFT versions.

HOW ARE THEY BEING USED?

NFTs are being used to secure digital ownership of digital and real-world assets, protect intellectual property, and increase the monetization opportunities of assets for creators.

HOW IS NFT BEING RECEIVED BY THE WORLD?

NFT is being used in many fields like art – artists are looking to it as a way to register exclusivity, gaming – many NFT games attract players, players can earn safe money without account is not hacked by hackers, in addition, many people also use NFT to earn money by being creative their own products.

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