What is Non-Fungible Token (NFT)? Explained In Easy Way

NFT’s are ‘Non-Fungible Tokens’ you heard it everywhere right? but do you understand that?

Let me explain you in an easy way

First of all,

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What are fungible and non-fungible?

So as Google says, Fungible means similar objects or things that we can exchange for one another. let’s suppose a dollar can be exchanged for another dollar and their values are the same.

Every cryptocurrency coins are also fungible i.e. one bitcoin is equal to another.

But that’s not applicable for NFTs

So, Whats an NFT?

Let’s understand it by real-life example,

the Painting of Monalisa is an antique piece of art and it is the only one in the world.

And all people know that it is non-fungible means there is no other painting of Monalisa which we can trade with the original one.

If someone buys that painting for $850 million then he will become the real owner of that artwork (though the artist can still retain the copyright and reproduction rights).

But the interesting fact is,

What if someone painted it exactly as it is? or print it out?

will the value of a real one change?

or can we replace the original artwork with another duplicate one?

The answer is ‘NO’

because all people know that it is the only artwork in the world and that is irreplaceable.

The same goes for NFTs

You can download the NFT artwork and save it to your gallery.

But all people know who is the owner of that digital artwork or any digital file (e.g. tweets, videos, etc.)

But there are thousands of NFTs sold every day, then how can all people know the exact owner of any artwork?

that’s where Blockchain technology helps.

And also that is the reason why NFTs are becoming so popular.

If someone created an NFT artwork then it generates its unique identification code which can be transferred by blockchain technology like Ethereum.

All the transitions of NFTs worldwide are gathered in one block and this block is then transferred to all networked computers. This chain of blocks are called as blockchain

NFT are generally held on ethereum blockchain but other blockchains also can be used.

Is any digital art is NFT?

No, You have to upload your digital art file to NFT marketplace, set up its blockchain and then you can sell that NFT

How to create and sell an NFT?

There are few steps to create NFT :
1. select your item
2. choose blockchain for your NFT
3. Set up your digital wallet
4. Select your marketplace
5. Upload your file
6. Set up sales process

Why People are crazy for NFT?

Some people are saying that NFTs are Next Investing marketplace. And so many famous peoples and entrepreneurs are also investing in NFTs,
But Some People are saying that it is only a hype bubble like dot com craze.

Should I buy an NFT?

Yu says.
“NFTs are risky because their future is uncertain, and we don’t yet have a lot of history to judge their performance,” she notes. “Since NFTs are so new, it may be worth investing small amounts to try it out for now.”
If you are buying it as a appreciation for your favourite artist or you are crazy fan of any particular antique piece of NFT like marvel nft or disney nft then its absolutely fine to buy it.

How to buy an NFT?

So, if you have made a decision then
There are so many nft marketplaces like, Opensea, Axie, etc where you can buy NFTs. So first of all you have to purchase a cryptocurrency such as Ethereum where your desired NFT was held on.
Then you have to transfer this coins to your digital wallet
And then you have connect this wallet to your NFT marketplaces.

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