What the hell is NFT?

Summary

NFT or non-fungible tokens are certificates of ownership for digital or physical assets, with the ownership living on the blockchain and cannot be forged.

Abstract

NFTs (non-fungible tokens) are unique certificates of ownership for digital or physical assets, stored on the blockchain and cannot be forged. Unlike fungible assets, which can be interchanged, non-fungible assets are one-of-a-kind, like a house or a painting. For example, if you buy an NFT for a painting, there will only be one copy on the blockchain and you are the owner of that painting. Others can make copies of the painting, but they will not be the original. The lifecycle of the painting can be tracked easily on the blockchain. To create an NFT, one can go to an NFT marketplace platform, upload their digital art, and pay the gas fees to mint (create NFT on the blockchain for their digital assets).

Opinions

The author believes that NFTs are a unique way to certify ownership of digital or physical assets.
The author suggests that NFTs provide a secure and trackable way to own digital or physical assets.
The author mentions that the NFT marketplace is currently on the Ethereum blockchain, but new platforms are coming on the Binance Smart Chain, which has lower gas fees.
The author encourages readers to follow them on social media and try out the AI service they recommend.

What the hell is NFT?

NFT or non-fungible tokens are certificates of ownership for digital or physical assets. Fungible assets are the things that can be interchanged for example, if you exchange one dollar with another one dollar and it would be the same value. But for the non-fungible assets, you can’t do that, it’s one of its kind, for example, house/painting — they have different properties.

So NFT means the ownership of the asset lives on the blockchain and cannot be forged, suppose you buy an NFT for a painting, now there would be only 1 copy on the blockchain for that painting and you are the owner of that. Others can make copies of the same painting but that will not be the original. If you sell the painting then it will create another transaction on the blockchain for the painting, and the lifecycle of the painting can be tracked easily in the blockchain.

For simple words, assume there is only 1 bitcoin in the whole world and you are the owner of that bitcoin. now every transaction of that single bitcoin is available on the blockchain. The same things happen for any non-fungible asset.

How do you create an NFT?

There are many platforms that provide such services, currently, all the NFT marketplace are on Ethereum blockchain and the NFT will be on the eth blockchain.

Go to any NFT marketplace platform. for example, there is a simple platform https://rarible.com/

Upload your digital art

You will have to pay the gas fees in order to mint (create NFT on the blockchain for your digital assets)

That’s it, you can now transfer your NFT to any wallet as you transfer your bitcoins.

(There are some new platforms coming in the future on Binance Smart Chain, on that blockchain gas fees are much much less than ETH gas fees.)

If you find this article helpful do consider following me. I am trying to get to 100 followers. Cheers!