What Is NFT And Why Is Everyone Talking About It?

What Is NFT

The abbreviation NFT (non-fungible tokens) means “non-fungible token”. To understand tokens, you need to understand the environment in which they reside on the blockchain (in this case).

To simplify a lot, a blockchain is a database that is simultaneously stored on a huge number of computers.⠀

The tokens, in turn, are a ledger entry within this blockchain. A special feature of most tokens is the principle of fungibility. It can be compared to a currency (including cryptocurrency): one dollar, one bitcoin can be easily replaced with one dollar, one bitcoin belonging to other users.⠀


However, it is clear that not all digital assets are fungible. The picture of Pablo Picasso is not identical to the work of Claude Monet, and the mp3 file with the song of The Beatles can hardly be replaced with a recording of Eminem’s concert. Therefore, in order to transfer unique items to the blockchain, the format of non-fungible tokens was created.⠀

What is NFT

An NFT or non-fungible token is a unit of account that creates a digital impression of each unique item. Among them can be: paintings, photographs, videos, music, gifs – in a word, any content that claims to be at least some kind of uniqueness. They are highly prized among collectors, gamers, and art lovers, and are bought and sold through auctions.

These same tokens are stored in the so-called blockchain – a huge chain of blocks, each of which contains information. Unlike, for example, servers, where data is stored in one place, these blocks can be located on many devices in various parts of the world.

This kind of encryption makes the blockchain very difficult to hack, because at best you will be able to hack just one block of information, and not the entire chain. That is why most of the cryptocurrencies work on the blockchain.

A token is just a record in one of the blocks, and, as a rule, there can be a lot of such records of the same type. For example, each individual bitcoin is an exact copy of another such bitcoin, which makes it possible to compare them with a currency.

But what if you need to create a unique token that has no analogues? The answer is NFTs.

An NFT token is a way to transfer unique items from the real world to the blockchain. Each of these tokens is unique, inseparable and exists in the singular. In addition, all the necessary information about it is securely stored on the blockchain.

Uniqueness may vary. So, the very first SMS was sold for 150 thousand dollars, and the first tweet of the founder of Twitter, Jack Dorsey, went for almost 3 million. After that, other stars began to look at the NFT.

How to create your own NFT

What Is NFT

So we come to the most interesting part – how to create an NFT token. You can create NFTs using specialized platforms such as OpenSea. In addition to registering there, you will need the Ethereum system wallet and the actual digital content that links the tokens.

The NFT creation algorithm depends on the platform you choose. But in the general case, for this you need to log in to the system through the Ethereum wallet, create a collection and upload the necessary images, animation, music, or even 3D animation to it.

For example, the same OpenSea supports files in JPG, PNG, GIF, SVG, MP4, WEBM, MP3, WAV, OGG, GLB, GLTF formats and weigh less than 100MB.

Then you need to add a description and link to the object, set the basic parameters of the token and click the Create button. The token will be sent for confirmation and can then be sold.

As for the token itself, its non-fungibility is ensured by the unique combination of the object to which it is linked and your identifier in the system or a unique key that signs any token passing through your account. Actually, it is thanks to such an individual signature that any user can trace the entire path that NFT has gone through since its inception, and all the owners of this certificate.

In addition to your ID and token object data, there are a number of parameters inside the NFT that describe what the certificate owner can do. The main ones are resellable and copyright_transfer. The first is responsible for the possibility of reselling the token and the second is responsible for transferring the copyright of the object to the owner.

Moreover, if the copyright_transfer status is false, then, in fact, you are buying only your place in history and the possibility of reselling the token (if the resellable parameter allows it). There is no way to even copy the file attached to it.

What you need to create an NFT

Of course, first of all, you will need the object itself, to which the token will be attached. And the final price of NFT depends on its uniqueness and exclusivity. It can be a GIF, image, creative video or song you created. In general, everything that you think can be of interest to other users.

The subject matter of the NFT can be very realistic as well as digital objects. For example, you can use tokens to sell your own stamp collection, sculpture, or actual painting. This practice is still uncommon, but it will definitely change in the future. Moreover, there are already examples of this: not so long ago, an art object worth more than 130 thousand dollars was sold at Christie’s auction.

In addition, to create an NFT, you need a cryptocurrency wallet and a supply of coins that may be needed to pay the fee. Although the latter is not always necessary – some platforms allow you to create tokens for free if you do not plan to sell them …


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