It can be a challenge to keep up with the exciting new array of information on the blockchain that keeps coming our way. From the ups and downs of the Bitcoin price to the meme-inspired Dogecoin that suddenly turned into the best investment of 2021 and more.
Another thing that is also trending right now is blockchain assets called non-fungible tokens (NFT – Non-exchangeable tokens) which have especially taken the artistic world by storm. Here’s everything you need to know about NFT for beginners from a layman’s point of view. NFTStudio24.com provides a platform for the global community to get in-depth news on the developing fields of NFTs, cryptocurrencies, and blockchain technology.
Non-Fungible NFT Token for Beginners
What is NFT?
Non-fungible sounds like a word you’ve probably never heard of before, so let’s break it down first. Exchangeable assets are anything that can be exchanged for units such as currency, for example. You can exchange 10 thousand rupiah notes for two 5 thousand rupiah notes that have the same value.
On the other hand NFT cannot be exchanged for anything else. In contrast, an NFT can be compared to a graduation certificate with your name on it and only yours. When someone buys an NFT, they own the item even if it doesn’t physically belong to them. This could be a painting, a video clip or popular tweet, or even a digital coupon.
NFTs are widely referred to by other terms as digital collectibles, especially in the arts and pop culture world.
How NFT works
As an NFT buyer, you have a whole range of digital assets to choose from, be it video games, digital artwork, logos, photos, animations, music, video clips, and more. Getting NFT basically takes you into the world of blockchain and cryptocurrency or crypto money because it relies on the decentralized power of blockchain technology to verify its authenticity.
As a result, buying NFTs means buying public proof of ownership of certain digital assets which makes them nearly impossible to hack. This is because NFT is protected by a framework that is just as robust as cryptocurrencies.
The result? When you buy NFT, you get a digital asset with a certificate of authenticity plus legal rights combined into one.
Other things about NFT
You may own an asset in the form of digital art, but the work may be copied or pirated by others. NFT gives you ownership rights to the media file in question, unlike pirated versions where you can make a copy and enjoy the digital asset in any way you feel free.
Moreover, certain cryptocurrencies have the same price at the same time. However, NFT prices do not follow the same rules and can be set arbitrarily higher or lower, depending on the demand.
Second, most NFTs are currently part of the Ethereum blockchain . Ethereum is a cryptocurrency, like Bitcoin or Dogecoin, and its blockchain can store additional information that supports NFT. Other cryptocurrencies are also taking part but the current gold standard is still Ethereum.
In 2021, Binance, the world’s largest cryptocurrency exchange, announces the launch of its own NFT marketplace in June 2021. The market will be powered by the company’s blockchain infrastructure , Binance Smart Chain, which comes with a lower fee structure where creators can pocket 90% of the total sales amount. This could potentially rock the nascent NFT world at the time.