What is NFT? “Non-fungible” more or less means that it’s unique and can’t be replaced with something else.
NFT's can both be digital and physical assets and whose ownership can be tracked. Digital files can owned same as financial assets. For example all forms of digital media like JPG, audio and video files.
The creator can upload them to blockchain and the ownership of the assets can be tracked.
Fungible vs non-fungible Fungible tokens are completely interchangeable with each other. The most notable example of fungible assets refers to fiat currencies. NFTs are not divisible and have their value as a whole entity and are not interchangeable as each of them represents unique assets.(Example Piece of art, collectibles etc.,). In other words you can own piece of a digital media file.
Use cases of NFT's NFT can be used for Blog posts, news letters, audio files, KYC (Know Your Customer) procedures, for academic degrees and other educational certificates, collectibles, badges, voting & elections, loyalty programs, in-game items, copyright, supply chain tracking, medical data, software licenses, warranties and more.
- A discord server may or a news letter can accept/ask its users to pay in these NFT's.
- Fans can bid for favorite part of their TV show episode or winning moment of world cup.
- Bid for a celebrity tweet or fb post.
Re-sale of NFT's too can be done digitally and original owner get's a little share as long as trade continues. Say a album from an artist, artist keeps receiving a little share for a long.
The creator/company sign the asset with public cryptographic keys and it's identity is available to publicly.
How do NFTs work? A company initially mints the NFT and put it for listing and let users bid on that asset or a piece of art or set a price for it.
For people it's a social element of owning an Art or asset and display in on their social media accounts or put as DP.
A lot of NFTs work based on the Ethereum blockchain. It is worth noting that other blockchains can implement their own versions of NFTs.
Exchange NFT's can be swapped like crypto tokens.
