What does NFT stand for?
NFT stands for Non-Fungible Token.
What does Non Fungible mean?
Non fungible basically means that if there are 2 similar(or different) items they are distinguishable. Whereas fungible means 2 or more items may be indistinguishable from each other.
An example of non fungible is your cash money. If I have 1 dollar bill and you have 1 dollar bills and we throw it in a sack and pull it out, we will be able to distinguish it from each other because of different serial numbers.
Compare this to 1 dollar in digital money, if we transfer 1 dollar each to a third person and then get 1 dollars each back, there is no way to know If I got the dollar I sent. Digital money is fungible.
So, what are NFTs then?
AN NFT is just a unique token that represents some real(or Virtual) Objects like artwork, music, property deeds etc.
NFTs are supposed to represent the ownership of that particular object.
How does NFT work?
NFTs work on blockchain(ever heard of Bitcoin) . Blockchains are distributed
Ledger that records transactions that are immutable. Once a transaction has been recorded on blockchain, it cannot be reverted.
The idea here is that on blockchains like ethereum, solana etc, You can create tokens for object like:
● Art
● GIFs
● Videos
● Collectibles
● Virtual avatars and video game skins
● Music
● Digital Property in metaverse
This token is unique and contains a link to some external resource(usually on immutable storage itself). The ownership of this token is assigned to your blockchain wallet. The process of generating these tokens for an item is called “minting”.
This file then can be sold or transferred to other users on that blockchain.
Owners of these NFTs get exclusive rights to the asset and can monetize it or collect these NFTs and sell it in future.
What is the use of NFT?
● NFT gives content creators and artists a unique opportunity to monetize their creation.
● NFT can be programmed to give royalty to the creator everytime it is sold.
● NFT are used in gaming to sell characters, accessories etc.
● NFTs are a big part of metaverse, since properties and assets in metaverse can be sold as NFT.
Where to buy NFT from?
Since NFT are stored on blockchain, we can technically write simple code to mint an NFT if you are a developer. You need a wallet on the blockchain where you are minting your NFT, this too can be done by writing a simple code.
If you are not a developer, there are many NFT marketplaces where you can mint your NFT or buy an NFT or sell an NFT you already own.
● OpenSea: The biggest NFT marketplace out there, to get started, all you need to do is create an account to browse NFT collections.
● Rarible: Similar to OpenSea, Rarible allows artists and creators to issue and sell NFTs. RARI tokens issued on the platform enable holders to weigh in on features like fees and community rules.
● MagixB: Soon to be launching, our NFT marketplace allows you to mint, buy and sell NFT without hassle of setting up your blockchain wallet. This makes it easy for anyone to trade NFT.
