NFT stands for Non Fungible Token, they are public, verifiable, digital assets. They are tokens that live on a blockchain and represent ownership of unique items.
Non Fungible means your asset is unique, and irreplaceable. Furthermore, you cannot exchange it for a similar asset. A good example would be your birth certificate.
Even though everyone has a birth certificate, they are all different and no one can trade it. A fungible item is an item that’s not unique. An example of a fungible item is money. The $1 bill in my pocket holds the same value as your $1 bill. We can swap them.
A token is a unique digital certificate created by a smart contract and stored on a blockchain.
Before NFTs, anyone could copy and paste a piece of art or document on the web. NFTs allow users to keep ownership and they create an individual fingerprint for each item. NFTs make it so that no one can copy your asset. Each asset is 1 of 1.
The blockchain makes sure that your unique information is never tampered with. It also allows you to track who is the current owner of the token and shows how much it has sold for in the past.
NFTs give you ‘digital bragging rights’ as the owner of an asset. There may be copies of your asset out there, but the blockchain will show that YOU are the true owner of the original.
Some current examples of NFT usage:
- Digital Artwork
- Domain Names
- Real Estate
- In-Game items (video games)
- Concert Tickets
You can use NFTs for anything that is unique or limited and needs proof of ownership. The market determines each NFTs ultimate worth.
Cost depends on what people are willing to pay for it. The more exclusive and trending, the higher the cost.