“Well… What’s up? “Like blockchain news. That’s how I feel when I hear that Pak’s Finite pays millions for an NFT or Coldie’s Welcome Home is sold as one. The situation has become even more difficult this year, when NFTs have soared in popularity, with tens of millions of dollars being paid for monkey images. There are numerous reports of multi-million dollar NFT projects being hacked. And corporate morale only gets worse. After reading this news, you might be wondering what NFTs are. After a lot of research and discussion, I think I figured it out. (mostly against my choices) Also, I expected to cry.
What are NFTs?
NFTs are cryptographic tokens similar to cryptocurrencies that can be stored on a blockchain and used for legitimacy. Physical and intangible assets such as art, collectible cards, or real estate. Unlike Bitcoin, a “sharable”, non-fungible token is a single token and cannot be copied or exchanged. This is similar to how blockchains solve financial transactions or track components of a supply chain. It is important to emphasize that when people purchase NFT licensed art, they are not purchasing the digital asset itself. Chicago is investing in digital certificates of record that are declared to have a single owner, with the expectation of building a mobile application involving NFTs. Anyone can download a file or link related to what the NFT tokenizes. However, only the NFT owner owns the contract stating ownership.
How does Nft work?
The Ethereum blockchain contains most NFTs. However, other blockchains have their own NFT implementations, just like Bitcoin or Dogecoin. Ethereum is a digital currency. However, the blockchain also keeps accounts of who owns and transacts NFTs.
Why did you introduce Nfts in the first place?
They are promoted as a way to ensure ownership of something that would otherwise be copied very easily. Digital artwork is much easier to replicate than traditional paintings or sculptures. Just download a copy. Similar to how blockchain ensures that a single Bitcoin can only be held by one individual, NFTs prove authenticity. A blockchain is an immutable record of transactions. for further clarification. See my colleague Dominic’s explanation here. Unlike physical works of art, they may be damaged, lost or destroyed. NFTs cannot be destroyed. The same applies to digital currency transactions as they are recorded on the blockchain. There are other blockchains besides Ethereum that are used in most NFTs.
