12/10/2021
What are NFT tokens?
If in recent years you, like everyone else, have been browsing a news site or just visiting social networks, then perhaps you have at least once wondered "what are these NFTs?" and why they are being talked about so much in the digital and investment space in 2021. In this and the following posts, we will look at this topic and tell you everything you need to know about how NFT tokens work, what new they bring to the crypto space and our lives
and what awaits them in the future.
What does the abbreviation "NFT" mean?
What is a non-interchangeable token?
An NFT token, aka a non-fungible token, can be translated as a "non-interchangeable token". A huge number of different tokens, digital virtual units are stored in the blockchain β this is a kind of analogue of a currency, in the value of which goods, various services, etc. are invested. Their purpose is to register ownership rights to unique digital items that can be presented in any form: from graphic images to videos, music, videos, tweets, virtual land plots, articles or other artistic forms. Usually all tokens are equal and interchangeable. This means that if we want to replace one token with another, nothing will change.
NFT technology works differently: each non-interchangeable token is unique, so it cannot be forged or exchanged for another. Each NFT token is assigned its own identifier and a special code, as well as other data that ensures that it cannot be copied. Let's say you borrowed a hundred dollars, and returned another hundred a week later, and at $ 50. Similarly with the crypt: you can borrow bitcoin with one identifier, and return it with another unique code, as well as with fiat currency (dollars, euros, dongs, etc.), you can freely exchange it Without any difference: the main thing is the nominal value. If the amount is similar, other factors do not play a role.
This won't work with NFT. Each token is unique and carries its own value
and it cannot be replaced by analogues, because they simply do not exist. For example, if you have an original painting by a famous artist, and someone else has another painting by that artist, it would be unwise to exchange them, because they may have different values.
The same goes for NFT.
In other words, by purchasing NFT, you get exclusive rights to own a unique digital product: from gifs to paintings, from audio to digital sneakers. And yes, you can collect them or sell them now for a larger amount