What is NFT
What NFT means and how it works


 What NFT means and how it works 2023. In this article, we will talk about what NFT means and how it works. If you don't know what is NFT. Then this article gonna help you alot. NFT stands for 'non-fungible token', but I think you don't know what it is and how it works. Today I will tell you everything related to NFT. 


What is NFT?

NFT stands for "Non-Fungible Token." To understand what that means, lets break it down

Token: In the digital world, a token is like a unique digital certificate that represents proof of something.

Fungible: Something is fungible if it's interchangeable with other things of the same kind. For example, money is fungible because you can trade one dollar for another, and it's still worth the same.

Non-Fungible: On the other hand, something is non-fungible if it's unique and cannot be replaced by something else. Each item has its own distinct value.


So, we can say that NFT is a unique digital token that represents proof of something. It can be used to prove that you own a specific digital asset, like a piece of artwork, a video, music, etc.

What makes NFTs special is that they are built on a technology called blockchain, which is like a digital ledger that keeps track of who owns what. They have a permanent record of ownership that can't be easily changed or copied.

People can buy, sell, and trade NFTs on special online marketplaces using cryptocurrency. Each NFT has a unique code that distinguishes it from others, and it's stored on the blockchain, making it verifiable and secure.

How NFT works? 

• NFTs are special digital items that represent proof of something unique.

• These digital items can be various things like artwork, music, videos, virtual land, etc.

• When someone creates an NFT, they take their digital item and turn it into a unique token using a technology called Blockchain.

• Blockchain is like a digital ledger or record book that keeps track of who owns what. It ensures that the ownership of an NFT is secure, transparent, and can't be easily changed or copied.

• Once the digital item is tokenized as an NFT and recorded on the blockchain, it becomes a one-of-a-kind item with a specific code or identifier.

• People can buy and sell NFTs on special online marketplaces that connect buyers and sellers. These marketplaces often use cryptocurrency as the payment method.

• When someone buys an NFT, the ownership of the digital item is transferred to them, and they become the official owner. However, others can still see and enjoy the digital item; the NFT simply proves ownership.

• One interesting aspect of NFTs is that creators can earn royalties. This means that if the NFT is resold to someone else in the future, the original creator can receive a percentage of the sale as a form of ongoing compensation

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