Is it possible that you don’t know why the simple images of cats, which are sold in millions at NFTs, can be so expensive? It’s not fair that people are willing to spend millions on a piece of art they can easily download. Even if it does, is there any sense to this? Why do NFTs matter to gamers? NFTs were the main topic of conversation at the beginning of 2018.
NFTs may be understood by some, but most are not. Non-FungibleTokens is all they understand, yet are clueless as to its benefits and downsides. You may be surprised to learn that it’s actually not so difficult as it appears. You may be confused. Let us assist you.
What exactly is NFT?
NFT stands first for Non-Fungible Tokens. Why? First, let’s define what is fungible. Fungibles tokens can easily be swapped or replaced. As an example, the ten-rupee notes can easily be substituted by two five-rupees coins. In contrast, non-fungible tokens can’t be exchanged the same way.
It is impossible to replace them, just as the Mona Lisa. There have been many copies of this painting but the original cannot be replaced. Your home is the same way; you cannot replace it by another one in your locality, because every house has its own value.
NFTs can’t be substituted because each one has its own unique property. This is the Unique Identifying code that is associated with it. NFTs have many uses. NFTs can take any form, from photos to videos to audios, as well as many other types digital artworks. Not only are the works of art included in NFTs, but so too are the other digital needs, such as the IDs stored digitally, the search history and credit history.
It’s a good question: why not just pay millions and download it free? In the context of digital art, how can artists sign their pieces when all artworks are available for download or cropped in order to remove the “watermark”? NFTs provide the answer. NFTs enable legitimate ownership to be transferred.
NFTs can be traced because every bit of data is stored on the digital ledger. The owner receives a proof of ownership that has more value than an issuance of copyright. From the digitally signed creator to past owners and even the current owner, blockchain technology has it all! It is possible to prevent fraud by ensuring that everyone who has access knows at all times to which NFT a certain NFT belongs.