The abbreviation of NFT is “Non-fungible token”. That divides into 2 parts that are “non-fungible” and “token”. Something which is fungible can be interconverted, therefore “non-fungible is everything which is different.
A painting, for instance ‘the Mona Lisa’ which you can glance in the museum, and in the digital world, a simple video you produces, a piece of digital artwork or a tweet,” speaks Dr. Merav Ozair, who is a blockchain expert and professor of fintech at the Business School of Rutgers.
The token part suggests its digital presence and the reality which it is secured by utilizing the technology of blockchain. For breaking it down even more; the NFT is considered to be a digital asset simply, due to its presence on a blockchain, it cannot be duplicated.
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Meanwhile, the most ordinary example of NFTs nowadays is digital artwork like Binance NFT; this could be a complete manager of things. Videos, songs, tweets, digital skins for games, GIFs, and even headshots of William Shatner [yeah, which is an NFT you could purchase].
How the working is done in NFTs?
Okay! Here is the point where things get more complicated slightly. An NFT depends upon 2 pieces of technology; the first one is cryptocurrency and blockchain.
Blockchain is a term you have heard probably before as it speedily became a famous concept in the digital Era. A blockchain is a distributed and allocated digital ledger, or in other words, you can call it a ‘Shared electronic database’.
This is exactly the same as a Dropbox or Google Drive along with the exception that, when you are allowed to make an addition in it, you can’t be able to edit and remove anything. There is not just 1 singular blockchain. There are many other Blockchains and they all perform and work efficiently and differently.