NFTs Explained

NFTs Explained

Non-Fungible Tokens, or NFTs, are currently in the midst of the type of hype-cycle last seen in the blockchain/crypto world when Initial Coin Offerings were all the rage.

What Are NFTs?

An initialism for non-fungible tokens, NFTs are a type of cryptocurrency token. Each NFT is non-fungible, which means that it is one of a kind and irreplaceable. This quality makes it different from other crypto tokens, such as Bitcoin. One bitcoin can be exchanged for another, but each NFT is unique and cannot easily be traded.

Because NFTs are not fungible, they can be used to represent other, unique assets that are either online or in the physical world. For instance, an NFT could be used to represent an oil painting hanging on an art gallery wall. More commonly at present, NFTs can be tied to a digital asset by cryptographically associating the token with that other asset.NFTs can be anything digital: artwork, memes, sports cards, music, etc.

Non-Fungible Token: A non-interchangeable unit of data stored on the blockchain.

How NFTs Work

NFTs are just individually unique crypto tokens. Just like any other token, an NFT contains data, such as who it belongs to, its smart contract address, and all metadata regarding all transactions ever performed with it. Being on the blockchain, this data cannot be altered and is viewable by anyone with an internet connection. Blockchain makes sure we can all tell which is original. Blockchain helps to provide the ability to verify and authenticate things in the digital world. If we look around us we can see that the world is becoming increasingly digital and as a result, things that we value are going to become more represented as digital assets rather than or as well as in the physical world.

Minting NFTs

Minting an NFT means that you are generating that token through the smart contract of the NFT project. As an alternative to minting, you can purchase an NFT from a secondary marketplace, such as OpenSea or LooksRare.

Also, how easy minting your own NFTs depends on the tools you use. Some platforms require you to have a bit of blockchain coding experience others are much more straightforward. The easiest have read of is Litho. Litho is an NFT minting site and aggregator (which means it shows all the NFTs that you can buy on the blockchain it’s built on) which provides totally code-free minting. All you need is:

  • A cryptocurrency wallet — so you can pay the transaction fee and also receive a payment if you want to sell your work.

  • The file you want to make an NFT.

NFTs is an emerging tech that will transform the realm of digital ownership. some of its popular use cases are :

- Gaming

- Art

- Community membership

I hope with these few lines you understand what NFTs.