NFT (Non-Fungible Token): What it is, what it is for, how to create, sell and buy
Posted: Sat Dec 07, 2024 9:36 am
NFT is still an abstract concept for many people, but it is important to understand the true meaning of what transactions could look like in the future. In the metaverse, non-fungible tokens tend to be important for securing digital transactions. Learn all about NFTs in this article.
Luis Herrera
Mar 23, 22 | 14 min read
brands used NFT
Reading time: 12 minutes
You've probably noticed that a good part of our lives are already digital, right? We meet friends on social media, have meetings, attend virtual classes and buy products online, from brands that sell in e-commerce and invest in Digital Marketing .
If our daily lives are becoming increasingly digital, it is not surprising that the things we buy, trade or collect are also digital, which helps explain the emergence and explosion of NFTs — which serve to validate virtual transactions and record the authenticity of these digital assets.
NFTs are highly valued, involve multi-million dollar sales and are considered a powerful way to make money. They promise a revolution in virtual transactions, but despite this, many people do not fully understand this concept and are somewhat wary of so many promises.
So, let’s better understand what this concept means and how you can take advantage of this new market.
Are you ready? Read on to understand all the secrets of NFTs!
What is an NFT (Non-Fungible Token)?
NFT is a public record of authenticity and trinidad and tobago email list ownership of digital assets, made possible through blockchain technology. It stands for Non-Fungible Token.
The name is strange to most people, so let's explain it further.
In the cryptocurrency market, a “token” is the digital representation of a financial asset, that is, a good that can be traded on the market.
When inserted into a blockchain, the token takes on the role of a contract, guaranteeing ownership—to whoever owns that token—in the form of a digital asset protected by cryptography and existing only on a digital ledger.
The term “fungible” refers to goods that can be replaced by others of the same type, without losing their original value.
A $100 bill, for example, is fungible, because it can be replaced by another bill of the same value. Therefore, a “non-fungible” good is one that cannot be replaced by another of equal value, because it is unique and exclusive.
Now, we can better understand what a non-fungible token is: a contract that guarantees the ownership and authenticity of a digital asset within a public ledger network .
It is as if you bought the original Guernica painting by Pablo Picasso and had the receipt of that purchase. The non-fungible token, it should be noted, would be the invoice, the record of the transaction, not Guernica itself. This record, therefore, indicates the location where access to the original work is.
So, when we talk about NFTs, we are just talking about the record of a digital asset. However, you will see that it is common to use the term NFT to refer to the production itself, such as a piece of art or an internet meme.
NFT and Blockchain
Blockchain is not a company, nor a product, nor simply a system: it is a data architecture concept that establishes a public record of transactions . It functions as a large ledger of transactions made between its members.
In blockchain there is no regulation or centralized intermediation; the members of the network themselves, in a decentralized manner, analyze and validate the transactions. When they are approved, they are recorded in encrypted data blocks, which are chained together to create unique and immutable codes.
So, blockchain ensures the security and confidentiality of transactions through cryptography and the decentralized network model. It may seem strange, but it is this concept that has been used in NFTs and cryptocurrency transactions and is touted as the future of the financial market.
When a person sells an NFT, for example, the blockchain records that transaction, which is encrypted, with the digital signature of both parties. Members of the network then evaluate the sale to attest to its validity and the authenticity of the digital asset. If accepted, the transaction data composes a block, which is then chained to other blocks to ensure its immutability.
NFT and cryptocurrencies
NFTs and cryptocurrencies are part of the blockchain and this new universe of digital assets and transactions; they use encryption and are evaluated by members of the network to certify their authenticity and guarantee the security of transactions made with them.
There is a fundamental difference between these concepts: while NFTs are non-fungible, cryptocurrencies are fungible , meaning they can be replaced by other assets of equal value, such as physical coins.
Cryptocurrencies are therefore used to make transactions on the blockchain, including transactions in the investment market and the buying and selling of NFTs. Yes, if you want to buy an NFT, you must have money in cryptocurrencies such as bitcoin or ether.
Luis Herrera
Mar 23, 22 | 14 min read
brands used NFT
Reading time: 12 minutes
You've probably noticed that a good part of our lives are already digital, right? We meet friends on social media, have meetings, attend virtual classes and buy products online, from brands that sell in e-commerce and invest in Digital Marketing .
If our daily lives are becoming increasingly digital, it is not surprising that the things we buy, trade or collect are also digital, which helps explain the emergence and explosion of NFTs — which serve to validate virtual transactions and record the authenticity of these digital assets.
NFTs are highly valued, involve multi-million dollar sales and are considered a powerful way to make money. They promise a revolution in virtual transactions, but despite this, many people do not fully understand this concept and are somewhat wary of so many promises.
So, let’s better understand what this concept means and how you can take advantage of this new market.
Are you ready? Read on to understand all the secrets of NFTs!
What is an NFT (Non-Fungible Token)?
NFT is a public record of authenticity and trinidad and tobago email list ownership of digital assets, made possible through blockchain technology. It stands for Non-Fungible Token.
The name is strange to most people, so let's explain it further.
In the cryptocurrency market, a “token” is the digital representation of a financial asset, that is, a good that can be traded on the market.
When inserted into a blockchain, the token takes on the role of a contract, guaranteeing ownership—to whoever owns that token—in the form of a digital asset protected by cryptography and existing only on a digital ledger.
The term “fungible” refers to goods that can be replaced by others of the same type, without losing their original value.
A $100 bill, for example, is fungible, because it can be replaced by another bill of the same value. Therefore, a “non-fungible” good is one that cannot be replaced by another of equal value, because it is unique and exclusive.
Now, we can better understand what a non-fungible token is: a contract that guarantees the ownership and authenticity of a digital asset within a public ledger network .
It is as if you bought the original Guernica painting by Pablo Picasso and had the receipt of that purchase. The non-fungible token, it should be noted, would be the invoice, the record of the transaction, not Guernica itself. This record, therefore, indicates the location where access to the original work is.
So, when we talk about NFTs, we are just talking about the record of a digital asset. However, you will see that it is common to use the term NFT to refer to the production itself, such as a piece of art or an internet meme.
NFT and Blockchain
Blockchain is not a company, nor a product, nor simply a system: it is a data architecture concept that establishes a public record of transactions . It functions as a large ledger of transactions made between its members.
In blockchain there is no regulation or centralized intermediation; the members of the network themselves, in a decentralized manner, analyze and validate the transactions. When they are approved, they are recorded in encrypted data blocks, which are chained together to create unique and immutable codes.
So, blockchain ensures the security and confidentiality of transactions through cryptography and the decentralized network model. It may seem strange, but it is this concept that has been used in NFTs and cryptocurrency transactions and is touted as the future of the financial market.
When a person sells an NFT, for example, the blockchain records that transaction, which is encrypted, with the digital signature of both parties. Members of the network then evaluate the sale to attest to its validity and the authenticity of the digital asset. If accepted, the transaction data composes a block, which is then chained to other blocks to ensure its immutability.
NFT and cryptocurrencies
NFTs and cryptocurrencies are part of the blockchain and this new universe of digital assets and transactions; they use encryption and are evaluated by members of the network to certify their authenticity and guarantee the security of transactions made with them.
There is a fundamental difference between these concepts: while NFTs are non-fungible, cryptocurrencies are fungible , meaning they can be replaced by other assets of equal value, such as physical coins.
Cryptocurrencies are therefore used to make transactions on the blockchain, including transactions in the investment market and the buying and selling of NFTs. Yes, if you want to buy an NFT, you must have money in cryptocurrencies such as bitcoin or ether.