NFT - what is it in simple words?

NFT (NFT) means "non-fungible tokens" (non-fungible tokens). This is a type of token where each instance is unique. It cannot be replaced or exchanged for another permit. Although initially, the tickets were created as fungible assets. NFTs represent ownership of individual assets, such as works of art, but they are only entries in a virtual ledger and do not confer any rights in and of themselves.

NFT (NFT) appeared in 2017: the technology was created on the Ethereum blockchain, based on smart contracts (an algorithm for generating and managing information about the ownership of something) of the cryptocurrency of the same name.

The most popular blockchain for creating NFTs is Ethereum: 90% of the available non-fungible tokens are sold through it.

But non-fungible tokens can also be created on other blockchains as an alternative to Ethereum. These include Binance Smart Chain, Cardano, Solana, and Tezos.

Why NFT tokens are needed and how they are used

NFT allows you to sell and buy virtual objects: music, photos, paintings, and drawings. The token confirms the ownership of any asset in the blockchain.

It is assumed that the NFT protects the authorship of the asset and confirms its uniqueness.

However, this applies only to the specific site where the token is placed. Outside the site, there is virtually no copyright on the subject's possession since this area has no legislative regulation.

The original intention of the NFT (NFT) is to be fixed in the blockchain with the equivalent of real assets. They can include shares in startups, ownership of real objects, or real works of art.

How NFTs work: how NFTs are created, sold, and bought

There are many platforms where you can place your tokens. Some specialize in a particular area: only art or audio files. To create an NFT ticket, you need a crypto wallet and a file with digital content.

Users who want to create an NFT upload content to the platform, and they come up with a name and description. NFT is created by converting digital content, be it a video, a song, or a drawing, into a record on the blockchain. Once an NFT is made, it can be put up for auction. At the same time, the NFT creator can limit the number of copies of the original and receive royalties from each sale.

How NFTs work: how NFTs are created, sold, and bought

There are many platforms where you can place your tokens. Some specialize in a particular area: only art or audio files. To create an NFT ticket, you need a crypto wallet and a file with digital content.

Users who want to create an NFT upload content to the platform, and they come up with a name and description. NFT is created by converting digital content, be it a video, a song, or a drawing, into a record on the blockchain, for example top nft youtube. Once an NFT is made, it can be put up for auction. At the same time, the NFT creator can limit the number of copies of the original and receive royalties from each sale.

For the creation of an NFT, the site will take a commission from the user immediately after the appearance of the token or at the time of its sale.

Those who want to buy NFT declare this to the author and, after transferring funds, receive a digital certificate with unique blockchain data. He can save the asset on the device - on the phone or computer. When copying, the owner can issue public keys to other users to confirm the object's authenticity.

The NFT itself remains in perpetual storage (Inter-Planetary File System). In addition to the buyer, all users can watch and download it, but only the buyer has a certificate.