Let’s understand NFT with help of an example
Suppose as a kid you attended the first book reading of Harry Potter in London in 1997 and JK Rowling gave you a signed first copy.
- This book has more value than all other first edition for its HISTORY and STORY it resonates with. Its “unique” (i.e. Non Fungible) than its peers
- There could be 20 kids along with you in book store who got signed book. So there would be 20 equally valuable “unique” books. But it can never be >20 as we can’t go in past and re-create that book reading. (i.e. Blockchain is immutable)
- Having that book gives you “Ownership” (i.e. Digital Ownership/Certificate) but you don’t get the COPYRIGHTS to use it for commercial profiteering purposes (i.e. ©️ belongs to creator)
- You can showcase it in your library/home or resell book to Private collectors for a price (i.e. Transfer Ownership)
So just like JK Rowling’s autograph on the book , NFT is creator’s autograph on a digital file which is unique and valuable.
In simplistic terms, having an NFT is like holding a code to the digital file ( image, video, tweet, GIF, text, song) which is stored somewhere on Internet (YouTube/Twitter/WordPress/Spotify) with a digital certificate (signature) bearing your identity.
The official Wikipedia description of an NFT —
A non-fungible token (NFT) is a unit of data stored on a digital ledger, called a blockchain, which can be sold and traded. The NFT can be associated with a particular digital or physical asset (a file or a physical object) and a license to use the asset for a specified purpose.[4] NFTs (and the associated license to use, copy or display the underlying asset) can be traded and sold on digital markets.[5]
Few Platforms to understand, screen (read window) shop and purchase NFTs are:
1. https://rarible.com/
2. https://v.cent.co/
3. https://opensea.io/
4. https://crypto.com/nft
Even centralized exchanges like Binance / KuCoin /Huobi have also started their NFT marketplaces.
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