Non fungible token (NFT)

What is it?
The term NFT stands for non-fungible token. Non fungible means something that is not interchangeable. Let’s assume, you have a two hundred rupees note and you are exchanging it with somebody for 2, 100 rupees note. Here, as we can see the currencies are fungible/interchangeable.

Non fungible token (NFT) allow you to convert your digital assets (like music, painting, games, videos etc.) to a unique piece by assigning a unique digital signature to your asset. This unique identity will contain the information of your ownership and can be traded for real currency/cryptocurrency or any other assets.

Let’s give an example here. Arya creates an album of songs and wants to upload it online. However, she fears her work may get tampered/replicated online. Here, non fungible token (NFT) can be a great help. Arya can buy NFTs for her works as it will secure her ownership and can let her trade music with other assets easily.

Now let’s come to some real-life applications. Beeple’s digital asset ” Everydays: The first 5000 days” NFT was sold for 69 million dollars. Twitter’s Jack Dorsey’s first tweet’s NFT was sold for nearly 3 million dollars.

How does the NFT work?
NFTs runs on blockchain which is a distributed public ledger that records transactions.

Applications
Presenting academic credential (cannot be tampered/altered)
Digital artwork
Gaming industry
Ticket sales

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