What are NFT
NFT means Non-Fungible Token It is authentication to show the ownership of a digital asset or digital creative arts. NFT data is stored on the blockchain. Non-fungible means non-interchangeable and this token would be a unique representation for the digital assets of a person. Like cryptocurrency, its concept is based on decentralization, meaning it cannot be interfaced with by any central authority. The person who has a unique token of his different assets, it is publicly available.
To understand non-fungible better, if you understand fungible, then those assets can be changed. Like cryptocurrencies are fungible tokens. But a unique image of a creator cannot be copied, only he owns all his rights.
Suppose you are a good painter, you have a lot of digital paintings, you are the owner of these paintings, you will use NFT to prove it. Which puts a kind of digital signature/token on your artwork. Your art can now be bought by other people, in exchange for which they will have to pay in cryptocurrency such as Ethereum.
How exactly NFT work?
NFT generates blockchain-based digital tokens for your digital assets such as audio, video, photos, or other arts. Each NFT contains some information about digital assets such as by whom is that asset created? Who is the seller? All this information is stored in a digital ledger. It provides a unique identity to your asset. NFT uses the Ethereum blockchain technology the most.
Any creator can buy NFT for his asset so that his work can be valued. There are many marketplaces that provide us platforms to buy and sell NFTs, people buy NFTs from there. Following are some very famous marketplaces for NFT trade.
- WazirX NFT
- Axie Infinity
- Binance NFT