WHAT IS NFT?
Earlier this month, a picture of a bored ape yacht club (BoredApeYachtClub#232) have been sold for more than $2.85 million. So, what actually is NFT? NFT is a proof of ownership. Copying is always the major problem of artwork. In real life, people sign on their artwork to prove their ownership of the art. In cryptography space, NFT provides a unique hash (Data) that acts as a picture signature. No one can alter or change the data history (signature) once it is uploaded to “the chain”. Hence, NFT established data publicity and transparency.
To get you equipped for the NFT space, here are the 5 things you have to understand about NFT.
1) NFT is unique.
Each NFT is unique and has a special set of information attached to the file.
Everyone can check the trading history, previous owners and price etc.
2) You can “Mint’ an NFT
Mint refers to the steps in which buyers are purchasing NFT directly from the seller and each NFT have coded with a specific ID that belongs to you.
The difference between mint and buy is that the transaction of mint is not executed on the secondary market.
3) NFT is a non-fungible token
Non-fungible token means a token that is non-replaceable and can not be traded. For instance, cash is fungible because we can trade $1000 for 10 $100.
NFT is non-fungible because it can not be broken down into 10 pieces.
4) NFT can be traded with different token standard
Even though NFT is non-fungible, NFT can be traded with cryptocurrencies such as etherum (ETH), Solana (Sol) or Avanlance (Avax).
To elucidate non-fungible and NFT, here is an example. You can sell your cute cat picture for $10 dollar but you can not trade your picture for another ice cream picture.
To obtain the ice cream picture, you can use your $10 dollars from the gains to purchase it.
5) NFT is the core of metaverse.
Metaverse has embraced the NFT and they have integrated the technology in multiple ways such as art lounge or in-game items.
NFT provided an economic value for in-game items in the metaverse which is the major driving force of metaverse in the current market.
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