What is NFT?
What is NFT? – Popularly known as a non-fungible token (NFT for short), it is a unit of data stored on the blockchain that confirms that a digital asset is unique and therefore not interchangeable. Anything found in the digital world can be stored as NFT. NFTs are mostly produced with Ethereum token standards. However, unlike cryptocurrencies, they are not traded in Ethereum’s ERC-20 standard, but in ERC-721 and ERC-1155 standards.
NFTs that are not mutually interchangeable like regular cryptocurrencies function like a cryptographic token, in other words, they are not interchangeable. NFTs generate cryptographic hashes, a string of characters that confirm that a dataset is unique, when strings against previous records, thus forming a chain of identifiable data blocks.
What can be stored as NFT?
Any imaginable asset in the digital world, including video, image, GIF, message, tweet, can be converted into NFT and stored. The NFT-converted digital asset is uniquely transformed into a dataset, thereby protecting that asset from being used by anyone other than the intellectual property owner.
Why are NFTs valuable?
The fact that all NFTs contain unique information and are easily accessible in the digital world shows the advantages of owning a product digitally compared to a physical product with collectible value. NFTs ensure that all information is available to the previous owner and manufacturer, preventing the making and reproduction of counterfeit products, and maintaining the originality of the digital asset.
Unlike crypto assets, NFTs are not interchangeable. The fact that each is unique ensures that each has different characteristics and prevents two entities from being equivalent.
NFTs also allow artists to protect their original productions and works from being copied. It has enabled the production of digital works by artists all over the world to become widespread, preventing intermediary institutions in physical works, and bringing buyers and producers together. In addition, in the event that a purchased NFT changes hands, it is ensured that the copyright details of the artist are protected and that the producer has a share in subsequent sales. For example, artist Refik Anadol has sold some of his digital works and can take a share as a producer if these works change hands.
How to make NFT?
NFT is created by uploading the file to be converted to NFT to an NFT auction market such as KnownOrigin, Rarible or OpenSea. This enables the creation of a copy of the file saved on the blockchain as an NFT that can be bought and resold with cryptocurrency. Even if an artist sells the NFT representing a work, the artist may retain the copyright to the work and create more NFTs of the same work. The recipient of the NFT does not have exclusive access, nor does the recipient acquire the copyright to the “original” digital file.
Questions Answered by the Blog:
- What is NFT?
- What can be done in NFT?
- Why are NFTs valuable?
- How to make NFT?