There is probably no one who hasn’t heard of NFT at the moment. What is it and why everybody is talking about it? Keep reading!
What is NFT?
NFT stands for non-fungible token, which is a blockchain solution to confirm the originality and ownership of a digital file, such as virtual art or some tangible object. Naturally, that seems extremely attractive to many people, especially digital creators.
Non-fungible token is a unique element of blockchain code which is similar to cryptocurrency, but cannot be exchanged nor shared. One can compare it to a physical certificate of authenticity, because it is impossible to copy. However, users can transfer token funds between their wallets.
Why is NFT so popular?
As mentioned above, NFT is a blockchain solution to confirm the originality and ownership of a digital asset. A token is created by saving the original file on a particular platform. It then creates a unique token and keeps it in a global directory. Thus, it is relatively easy to get in the market.
However, there is still one important question: why does a file saved in this form has any value in the first place? Well, this works just like with any other valuable asset: even if someone copies it, the original version stays the same and its value does not change. It is exactly the same for non-fungible tokens: it is impossible to make an identical copy of a file. It is unique, because the code assigned to it will remain unchanged.