NFTs Explained in 1000 words or less

One of the new and influential types of technology introduced into the crypto world this year is NFT (Non-Fungible Token). If you’ve been keeping up with the crypto industry, there’s a strong chance you’ve already heard of them… and their prices, but we’ll look into that later.

Now while NFTs have escalated in popularity in recent months and have the attention of tycoons, it’s interesting enough to learn more about what NFTs are.

Today I’ve decided to give you a run-down into the fascinating world of NFTs with their different aspects of the use and the impact they have on the virtual world and reality.

What is NFT?

NFTs too, are unique assets individually and can be bought just like any other product but without being substantially real. You can look at them as ownership certificates for any available digital file.

The working of NFTs

NFTs allow buyers to have original ownership so no matter how many copies exist, only one person (either the purchaser or artist) can possess true ownership of the file. The transaction as well rests on the blockchain ledger; maintained by computers globally which shows who owns the original file while also preventing any tampering with the records.

As of now, NFT exists largely on the Ethereum blockchain which means smart contracts can be incorporated into the scene as well. This enables the artist to get a “cut” for any future transactions.

NFTs and Security

NFTs and the Environment

I don’t disagree.

Plus, we are trying to switch to reduce this effect. Like in Ethereum’s cases, which is transitioning to a system that will lower the energy consumption rates.

When you perceive NFTs as a whole, they certainly have huge impacts (bad and good) and their potential is quite wide since they’re easy to trade and currently are soaring in the financial industry. Moreover, the hype of digital assets and tokens is at its peak hence NFTs are key elements in the crypto space.

Alternatively, there are a few issues regarding potential hacks and cases that have been reported by artists. Fake NFT accounts sold items belonging to the real artist, without their consent.

A blockchain enthusiast and entrepreneur’s musings on the next big revolution since the Internet.