Fri. Jun 25th, 2021
Non Fungible Tokens : NFTs
Non Fungible Tokens : NFTs

What are Non Fungible Tokens??

NFT is a unit of data known as the blockchain, 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 that separates them from others this is the reason NFTs are unique. NFTs can be bought like other art forms or pieces of property in the Digi-world but they do not have a realistic form. If NFT is made by a 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 Dorsey on March 22, 2006. The first tweet of jack says, “just setting up my twttr”. Jack Dorsey sold his first tweet as NFT for $2.9 Million. The tweet was purchased by the CEO of Malaysian blockchain service Bridge Oracle, Sina Estavi.

Most of the NFTs are part of the blockchain of Ethereum. Like Bitcoin, Ethereum is a cryptocurrency, but the blockchain of Ethereum supports NFTs. The NFTs are basically designed to give you 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 a copy of the art but the only one can have its ownership. The record of the ownership is maintained by thousands of computers as the data is stored on the blockchain.

How they work??

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

The detailed information of the ownership of these artworks 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 the 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 another token from a 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 the right to transfer the token to the digital wallet. The token is proof that the copy of the 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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