Thu. Apr 22nd, 2021
Non Fungible Tokens : NFTs
Non Fungible Tokens : NFTs

What are Non Fungible Tokens??

NFT is a unit of data known as block chain, basically it is unique and cannot be replaced, in other words it is one of a kind. Non Fungible Tokens include audio files, videos, images,… It has a unique identification code which separates them from others this is the reason NFTs are unique. NFTs can be bought like other art forms or piece of property in the digi-world but they do not have a realistic form. If NFT is made by the famous artist then it may cost more, it totally depends on how much the buyer is willing to pay. Example of NFT; Twitter CEO Jack Dorsey, sold his first tweet as NFT for $2.9 Million. The tweet was purchased by Sina Estavi, the CEO of Malaysian blockchain service Bridge Oracle. He purchased the NFT using the cryptocurrency Ether.

This tweet was posted by Jack on March 22, 2006. The tweet says, “just setting up my twttr”. Jack Dorsey sold his first tweet as NFT for $2.9 Million. The tweet was purchased by Sina Estavi, the CEO of Malaysian blockchain service Bridge Oracle.

Most of the NFTs are part of Ethereum blockchain. Like Bitcoin, Ethereum is a cryptocurrency, but the blockchain of Ethereum supports NFTs. The NFTs are basically designed to give you the ownership of the art or piece of property. The NFT art can be copied, even the original file can be saved but, what NFT gives is the ownership of the work. That means anyone can have the copy of the art but only one can have its ownership. The record of the ownership is maintained by thousands of computers as the data is stored on blockchain.

How they work??

When we think about the art or a piece of property which are tangible, those art works cannot be duplicated they are in real one of a kind. But in the digital world these art works can be duplicated easily. And to prevent this the art works are given a special identity. i.e. they are tokenized. A digital certificate of ownership is given after the art work is tokenized. This certificate of ownership can be easily bought and sold.

The detailed information of the ownership of these art works is stored on the blockchain. This blockchain technology was initially invented for cryptocurrencies ( for fungible assets) like bitcoin and other cryptocurrencies. Most of the NFTs are part of Ethereum blockchain as it supports ERC-721 token standards. ERC-721 standardizes safe transfer function, this type of token is rare and it can have different values than other token from the similar smart contract. The uniqueness may be due to its age or rarity. The ERC-721 mainly describes how to build non-fungible tokens on the Ethereum blockchain. When NFT is purchased then the owner is given right to transfer the token to the digital wallet. The token is a proof that the copy of artwork is original, similar to owning a tangible asset.

By The "NOOB"

I'm NOOB, just a blogger. Trying to provide authentic information to the readers. I hope you guys will enjoy reading my posts.

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