NFT stands for Non-Fungible Token. Non-fungible means that something cannot beexchanged for another item because it’s unique. For instance, one piece of art is not equalto another. Both have unique assets. Fungible parts, on the other hand, can beexchanged for each other. For example: one dollar or Bitcoin is alwaysequal to another. Okay, but what is an NFT? NFTs are tokens that live on a blockchainand represent possession of unique pieces. Why is that useful? Well, tracking who owns a digital file istricky because it can be replica and disseminated effortlessly. So how are you able prove who’s the original ownerwhen everyone has an indistinguishable facsimile of the record? NFTs solve this problem. Imagine that you made a piece of digital artistry, basically a JPG, on your computer. You can create or mint an NFT out of this. The NFT that represents your skill containsa bit of information about it, such as a unique fingerprint of the folder, a token appoint, anda symbol.This token is then stored onto a blockchain, and you, the craftsman, become the owner. Now you can sell that clue by creating atransaction on the blockchain. The blockchain fixes sure that this informationcan never be tampered with. It likewise allows you to track who’s the currentowner of a clue and for how much it has been sold in the past. It’s important to note that the artwork itselfis not stored within the NFT or the blockchain.Only its dimensions such as the fingerprintor hash of the folder, a clue figure, and symbol, and optionally a link to a file hosted onIPFS. More about that in this video here. Now here’s where NFT’s become creepy. When you buy an NFT that represents artwork, you don’t get a physical reproduce of it. Heck, the majority of cases, everyone can downloada copy for free. The NFT only represents possession, and thatis recorded in a blockchain so nobody can tamper with it. Some say that NFT’s give you digital braggingrights. And to make it even weirder: while the tokenowner owns the original artwork, the developer of the NFT retains the copyright and the reproductionrights.So an master can sell his original artworkas an NFT, but he can still sell periodicals. Aside from digital skill, NFT’s can also beused to sell concert tickets, domain names, rare in-game components, real estate, and basicallyanything that is unique and needs proof of ownership. For example, the founder of Twitter sold hisfirst tweet as an NFT. Anyone can see that tweet on his profile, but now, simply person or persons can own it. And that person paid over 2.9 million dollarsfor it. I could even make an NFT out of this video. You could then buy it and be the owner ofthis video, even though it’s free to watch for everyone. Why are some NFTs worth millions? Well, their worth is determined by what peopleare willing to pay for it. If I’m willing to pay a hundred dollars fora particular NFT, then it’s worth a hundred dollars.Prices are driven by demand, so be carefulbecause an expensive NFT becomes worthless if nobody wants to buy it. Okay, one more thing before we end: how dothey labor technically? NFTs are smart-alecky contracts that live on a blockchain. In this case, the contract storages the uniqueproperties of the item and maintains move of current and previous owneds. An NFT can even be programmed to give royaltiesto the creator every time it exchanges entrusts. So there you have it! NFTs explained in under 4 minutes. I hope that members can concluded it interesting, and if youdid, consider subscribing to this channel. Thanks for watching, and till next time !.
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