If you want to dive deep in the realm of non-exchangeable goods, then NFT is something you should know about. Here is everything about NFT that’s important to keep in mind.
What is NFT: Non-fungible tokens, shortly termed as NFT, are tokens which are crested by the same programming codes from which crypto currency is made. NFTs, just like any other cryptographic asset, are made by developers through a proper code, which cannot be tweaked in any way, shape or form. The nature if NFT is cryptographic, but they are different from crypto assets or other currencies is that they are extremely unique and cannot be changed or exchanged for anything else. The whole concept of crypto currency is the fact that it’s fungible, which means that it can be changed for something else, but this is not the case with NFT.
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Features of NFT
Here are some notable features of NFT:
- Digital Asset: NFT, like other cryptographic assets, is also a digital asset. It can be anything. From music, to an article of clothing, art, shoes and other collectable items, but the catch is that these things will be considered as an NFT, only if they are created by the same Blockchain programming or companies.
- Cannot be Manipulated: The nature of NFT is unique. It cannot be manipulated or changed under any circumstances. Unlike other Blockchain assets, which can be changed for something else, like money and points, non-fungible tokens cannot be exchanged. They have distinct identities, which make them very popular.
- Possible Exchanges: In case you want to exchange the non-fungible tokens for something, you can only do so through special websites, which cater to NFTs. Non-fungible tokens can also be exchanged for crypto currency like Bitcoin.
- Examples of NFT: Non-fungible tokens can be anything and everything. It can be a famous artwork, virtual real estate, branded articles like shoes, clothes, etc. These items need to be digital in nature, so that the tokens can be tracked and located.
How do NFTs Work? Here are some things you need to know about non-fungible tokens and how they work:
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- They are digitalized to store important information.
- While the tokens might be digital in nature, NFTs give ownership of real things.
- You can easily verify the origin and the legitimacy of NFTs.
- It is virtually indestructible because all of the digital data is stored in Blockchain and that is done through smart and digital contracts.
For the NFT to be legit, there is transparent data storage on Blockchain and everything is recorded in real time, from transactions to exchanges and more. NFTs can also be tracked very easily back to its origin, because each activity and purchase has a timestamp on it as well as a location where the transfers are made.
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There you have it! NFT is very unique and it has taken the world by storm. Long gone are the days of crypto currency. Now is the era of NFT.