Non-Fungible Token (NFT) is a digital asset representing unique ownership of goods (assets) built by Blockchain technology.
This NFT is unique because it cannot be exchanged for tokens or other assets like other digital assets.
NFTs are created using self-executing smart contracts with the terms between the buyer and the seller recorded directly into the lines of code.
How did NFTs work?
When an NFT is created, a unique digital signature represents the asset. These signatures are stored on the Blockchain, and an NFT is launched for the owner.
NFT prices are determined by supply and demand. NFT prices also vary depending on the value of the goods represented by the NFT.
One of the key aspects of NFTs is that they are owned and controlled by the person who holds the private keys to the digital wallet that holds the NFTs.
This allows the NFT owner to transfer ownership or sell the NFT to someone else.
In addition, NFTs are usually accompanied by metadata, which is additional information about the NFT stored on the Blockchain.
This metadata allows details about the item represented by the NFT and information about its creation and ownership.
How to Buy Non-Fungible Tokens (NFT)
When you want to buy an NFT, there are several things you need to do, such as:
1. Choose a Market
The NFT Market is a place where you can buy and sell NFTs. Three of the most popular NFT marketplaces are OpenSea, Rarible, and SolSea.
2. Determine the NFT Type
Many options for choosing the type of NFT you want to buy, such as art, event tickets, memes, media and music, games, virtual goods, and many more.
You can even buy NFTs for tangible items, such as valuable collectibles or photos signed by celebrities in images, audio, or video files, such as JPG, PNG, MP4, MOV, etc.
3. Set up a Crypto Wallet
The next step is creating a digital wallet to store your crypto and NFTs.
When choosing a crypto wallet, it is important to consider whether the wallet fits your needs.
NFT crypto assets
Some examples of crypto asset projects focused on creating and trading NFTs include:
1. CryptoKitties (CK)
CryptoKitties (CK) is a decentralized application (DApss) that allows users to develop, buy, and sell unique virtual cats as NFTs.
2. Crypto Collection
CryptoCollectibles is a decentralized platform that allows users to buy, sell and trade unique digital collectibles as NFTs.
3. CryptoSpaceX
CryptoSpaceX is a decentralized platform that allows users to buy, sell and trade a unique collection of virtual real estate assets as NFTs.
Conclusion:
1. Non-Fungible token (NFT) is a digital asset that represents a unique asset and is built by Blockchain technology.
2. NFT prices are determined by supply and demand. NFT prices vary depending on the value of the goods represented by the NFT.
3. Many other NFT projects are being actively developed and used. These projects’ specific features and capabilities vary depending on the underlying technology and design.
In the following material, you will study and discuss another basic learning material, namely “Metaverse”.