NFT means “non-fungible token.” This is the latest way of owning an original digital image. Similar to when original artwork and painting ownership was a longtime ago.
NFTs is the novel digital answer to collectables similar to how Bitcoin is the answer to the digital currency. Is all these a bubble or it is going to be a thing in the future? I do not know lol. But either way, we will just talk a little about what NFTs are and how they work just for our general understanding.
What is NFT or the Non-Fungible Token?
The NFT according to economics is something that has units and can be readily interchanged just like money. For example, when you have a $20 note and another person has two $10 both of them have the same value of the money. However, with the NFT, it is non-fungible, meaning it is impossible to equate the value. Instead, the NFT has a unique properties making it impossible to interchange with something else.
For example, we can use a house property or a paint. If you buy a physical house, you have that one house. You can renovate it or paint it or make changes to the house. But the house still remains the same piece of property and it is a tangible form of its own.
Therefore, an NFT is an asset too that is digitally represented. One can buy it just like one can buy a house property. The only difference is that the NFT is a non-tangible asset form of its own.
Just like when one gets a certificate of ownership to a physical property or a house. So does one get a certificate of ownership for the virtual NFT asset. You can get the NFT by buying using the digital tokens. Just like you can buy a house property using note currency.
How Does NFTs Work?
NFTs are one of a kind just like how an original painting is. With the NFTs, one gets to tokenize the NFTs asset by creating a digital certificate of ownership that can be bought and sold online. Therefore, it is not easy or legal to duplicate any digital NFTs asset. Just like when one owns a house property, a certificate shows ownership and no one can claim it without evidence of ownership. So as to how the crypto-currency ownership is stored on share ledger called the blockchain.
One advantage of digital NFTs assets is that it cannot be forged or duplicated. This is because the ledger is maintained by thousands of the computers around the world. Additionally, the NFTs can contain smart contracts that could potentially give artists an opportunity to earn form their work in future sales.
How Much is NFT Worth?
Anyone can tokenize their work and sell them online as an NFT. The interest in value is influenced by sales. So for digital artists, they can sale their artwork and be able to earn. Furthermore, you need to know that it is not only the artwork that can be sold as NFT, for instance the Twitter founder Jack Dorsey managed to promote an NFT of the first-ever tweet.
One can copy and share someone else’s NFT, but the owner gets to retain the copyright ownership of the NFT. The owner owns the token that proves that they are the owner of the original work.
Some people are skeptical about NFTs. The reason being that it could be a bubble and that some artist will earn from it while other will not. This is because most of those who are earning from NFTs are the crypto experts and some are just trying to come up with new form of worthless magic bean that can be sold online. Some feel that the idea of buying NFTs does not make any sense at all. It is hard to image buying something that is not there. Therefore, making it difficult to convince people to buy and sell NFTs.
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Quote: The moon looks upon many night flowers; the night flowers see but one moon. – Jean Ingelow