NFT is a unique type of digital token minted on the blockchain like Bitcoin (sadly you can’t mint NFTs on Bitcoin because its technology is not built for that) or Ethereum. Having an NFT means having a digital certificate, there is a digital signature assigned to whatever NFT you make. Be it a media file or a digital asset which assigns a digital ownership to the holder of the NFT.
NFT stands for Non Fungible Token. They are said to be non - fungible because you cannot swap them for its like or a different one, it doesn’t matter if whether they have similar worth. For instance hard currencies are fungible in the sense that they can exist in other forms and denominations equaling the same value and still be cogent and authentic, a hundred dollar bill can be exchanged two fifty dollar bills or five twenties but NFTs don’t work that way same way one bitcoin can be exchanged for its value in ethereum or any other digital coin. For instance one bitcoin is worth thirty eight thousand dollars which means that it can be easily swapped for its equivalent worth making it fungible. NFTs cannot be duplicated or copied as it would become inauthentic.
No two NFTs are the same, or at least that’s what it used to be or designed to be but some developers are abusing it these days where they mint several copies of the same graphic and call it limited. NFTs could be anything, from pictures or jpegs, games, videos or music. Ethereum blockchain happens to be one of the biggest and major blockchains where NFTs run.
NFT operates on smart contract where once an offer is made and accepted the NFT gets transferred to the buyer and the worth of ethereum bid is transfered to the seller. NFTs are easily distributed as the holder of an NFT can at any point decide to transfer the right of ownership to another by means of sale in exchange for money or a digital currency and by so doing gives any digital right whatsoever they hold over the NFT.
Cryptopunks and bored apes are some of the most expensive and popular NFTs minted on the Ethereum blockchain, though bored apes have more utilities than cryptopunks. One of the utilities is that it grants the holder assess to elite discord group where offers are announced and connections established. It also grants the holder airdrops which are free money and free assets. There are also Hivepunks on hive blockchain and Tpunks on Tron blockchain.
Basically, the developers mint NFTs by way of masking tokens with a media. NFTs are ways in which artists get appreciated for their work through royalty fees. This way it encourages more artists to have their works as NFTs.
This is an introduction to my NFT series where I write about NFTs and Crypto from a learner’s perspective. I stand to be corrected, always.
Thank you for dropping by.
