The Internet has revolutionized the way we share and access information. But the way we share digital elements such as music, art and videos still hasn’t caught up. The current system is full of problems: it is centralized, it is easy to censor and difficult to evolve; it is unfair, with the biggest players amassing huge amounts of power and leaving others with little or no say; and it is ineffective, with users having to download items on different platforms and lose control of their data. But with NFTs this problem almost looks like ancient history.
What the H*** is an NFTS?
NFT is the digital equivalent of rare souvenirs to collect: unique digital assets that are verified and negotiable on the blockchain. Blockchain is a digital ledger that records transactions and secures cryptocurrencies. The main difference between an NFT and a fungible product, such as an apple, is that NFTS is designed to have precise and fixed properties that cannot be changed after they are emitted.
the concept of NFT has been around in the cryptocurrency world for some time now, the recent craze around them has caused prices to skyrocket and, with it, the interest of a wider audience. Even people who don’t know cryptos began to wonder what it was about. Non-fungible tokens are the next evolution of digital collectibles," said Tom Shroder, a certified financial planner based in Fort Wayne, Indiana and managing director of Day Pitney Financial."
NFTS are used to represent unique assets such as digital art, collectible toys, precious metals and even real-world objects.
For example, a digital image may have a specific file size, color range and resolution, while a digital painting can only be reproduced in black and white.
Simply put, NFTS transforms digital art and other collectibles into unique verifiable assets that are easy to trade on the blockchain. While this may not be easy for the uninitiated to understand, the gain has been enormous for many artists, musicians, influencers and others, with investors spending the most money to own NFT versions of digital images.
NFT is the digital equivalent of collectible stamps, baseball cards or comics. Each individual NFT is a unique digital asset with a unique digital certificate – similar to how a hologram on a card is encoded on the blockchain so it cannot be falsified. The value of an NFT is derived from art, music, data, computer code, images, drawings and other unique digital assets that are encoded on the blockchain.