What are NFTs (story of the week)

NFTs are tokens that can be used to represent ownership of one-of-a-kind things. They enable asset tokenization like as art, antiques, and even real estate. They can only have one official owner at a time and are protected by the blockchain — no one can modify the ownership record or create a new NFT.

NFT is an abbreviation for non-fungible token. Non-fungible is an economic term that could rerfer to items such as furniture, music files, gaming cards with their own wallets, and even your computer. These goods cannot be swapped with other items due to their unique characteristics. On the other hand, fungible objects may be traded since their worth defines them, rather than their unique characteristics. For instance, ETH and dollars are fungible in the sense that 1 ETH / $1 USD may be exchanged for another 1 ETH / $1 USD.

An NFT internet / Today’s internet:

NFTs are digitally distinctive; no two NFTs are identical. / A duplicate of a file, such as an.mp3 or.jpg, is identical to the original.

Every NFT must have an owner, which is public information and easily verifiable by anybody. / Digital goods’ ownership details are kept on servers administered by institutions — you must accept their word for it.

NFTs are interoperable with any blockchain-based application. A NFT ticket for an event may be exchanged for another NFT on any NFT marketplace. You could exchange an artwork for a ticket! / Businesses that sell digital goods must have their own infrastructure. For instance, an app that sells digital tickets to events would need to develop its own ticket exchange.

Content producers have access to a worldwide market and the ability to sell their work anywhere. / Creators depend on the platforms’ infrastructure and distribution. These are often subject to use limitations and regional restrictions.

Creators maintain ownership rights to their works and may immediately claim resale royalties. / Platforms, such as music streaming services, keep the majority of profit generated by sales.

Items may be repurposed in unexpected ways. You can, for example, utilize digital artwork as collateral for a decentralized loan.