• What is a nft?

    NFT stands for non-fungible token. It is built using the same kind of programming as cryptocurrency, like Bitcoin or Ethereum, but that’s where the similarity ends. Physical money and cryptocurrencies are “fungible,” meaning they can be traded or exchanged for one another item that is the same. They’re also equal in value—one dollar is always worth another dollar; one Bitcoin is always equal to another Bitcoin. Crypto’s fungibility makes it a trusted means of conducting transactions on the blockchain.
    NFTs are different. Each has a digital signature that makes it impossible for NFTs to be exchanged for or equal to one another (hence, non-fungible). NFTs are also generally one of a kind, or at least one of a very limited run, and have unique blockchain identifying codes which makes them different from most digital creations, which are usually limitless. Therefore by limiting the supply of an NFT, it should raise the value of it assuming there is a demand.
    For instance, famous digital artist Mike Winklemann, better known as “Beeple” crafted a composite of 5,000 daily drawings to create perhaps the most famous NFT of the moment, “EVERYDAYS: The First 5000 Days,” which sold at Christie’s for a record-breaking $69.3 million. Anyone can view the individual images—or even the entire collage of images online for free. So why are people willing to spend millions on something they could easily screenshot or download? Because an NFT allows the buyer to own the original item. Not only that, it contains built-in authentication, which serves as proof of ownership. Collectors value those “digital bragging rights” almost more than the item itself.
    NFTs exist on blockchains, which is a distributed public ledger that records transactions. Specifically, NFTs are typically held on the Ethereum blockchain, although other blockchains can support them as well.
    An NFT is created, or “minted” from digital objects that represent both tangible and intangible items, including:
    •  Art
    •  GIFs
    •  Videos and sports highlights
    •  Collectibles
    •  Virtual avatars and video game skins
    •  Designer sneakers and other physical items
    •  Music (Individual songs and albums)
    Essentially, NFTs are like physical collector’s items, only in digital format. So instead of getting a physical item, the buyer will get a digital file. They also have exclusive ownership rights as NFTs can have only one owner at a time. NFTs’ unique data makes it easy to verify their ownership and transfer tokens between owners. The owner or creator can also store specific information inside them call an unlockable. For example, an artist can sign their artwork by including their signature in an NFT’s metadata.
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