What is an NFT | What is a non-fungible token

Posted on

Today, we will explain what an NFT is because we were looking them up honestly, and they are confusing. So, you’re going to learn precisely why they are valuable because that was our biggest question.

A non-fungible token, also known as NFT, is a digital token or asset, a common analogy to consider. These are like digital trading cards or digital boards. When you buy NFT, you purchase the rights for those particular assets. Now non-fungible means that it can’t be changed whenever it is created. You can’t share it and unlike Bitcoin, you need to be different from everything else. One bitcoin is like the other. Well, with NFTs, they’re never the same. They’re always different and also a token. It’s just a tiny piece of data that you own
together. An NFT is a token that you own that doesn’t change throughout time. So that’s the basics.

But when it comes to specifications, NFTs are good. NFT is just part of the data it has, and whoever has the password to that address owns that piece of data. This piece of data can be bought and sold to different addresses, and that data is verified on a blockchain, and you can check the owner history is always trackable with an NFT. For example, this cryptocurrency that sells for $ 600,000 is just a tiny URL associated with an address, and all that person has is a small piece of data. This data now points to a server that usually hosts an image and that is technically owned. This server can change its appearance, and it is essential to know what you are buying when you buy NFT. You purchase a piece of data that points to a server that hosts either an image or a gif. You should know that the server could change or the image and gif could change.

It’s the specific piece of data you own on the blockchain, not the access to the server and not the An image or gif, but also a small piece of data that points to the server. So in a sense, when you buy an NFT, you’re purchasing a small amount of data that represents something more extensive, kind of like buying a stock. You’re not buying the entire company, and unless it’s a dividend stock, you’re not getting anything from it.

2 thoughts on “What is an NFT | What is a non-fungible token

  1. Thanks for your marvelous posting! I really enjoyed reading it, you happen to be a great author. I will ensure that I bookmark your blog and will come back sometime soon.

    I want to encourage you to continue your great posts…

Leave a Reply

Your email address will not be published. Required fields are marked *