What Is NFT? Why Is It Making A Fuzz?
Updated: Aug 14, 2021
NFT is a unit of data stored on the blockchain, It certifies a digital asset to be unique, hence not interchangeable.
Currently, NFTs are taking a big leap in the digital art and collectable world. Finally, digital artists are seeing a huge potential in their assets. NFTs are not only for digital artists, but they are currently getting popular among musicians, artists, real estate agencies, insurance, universities and many more yet to come. NFTs can be used to represent the ownership of any unique asset, like a deed for an item in both the physical and digital world.
What Is an NFT?
NFT's are non-fungible tokens that can be used to represent the ownership of a unique item. Using NFT, we can tokenize arts, collectables, real estate etc. An NFT can only have one owner at a time and it is secured by Ethereum blockchain. It is impossible to modify the record of ownership, copy or paste a new NFT. The work Non-Fungible is a term used to describe things like cars, laptops, songs, movies etc. These items are unique and cannot be interchanged because of their unique properties.
Fungible is an interchangeable item with a value that defines them irrespective of their properties. Consider BTC and USD for example, these are interchangeable for their value.
“You can use your digital asset as a collateral on a DeFi platform and use it to get a loan.”
A few of the different ways NFTs are being used today are:
Unique digital arts
Advantages of NFT
There are a lot of advantages for NFTs which makes it a promising future presence.
No two NFTs are the same since they are digitally unique.
Content creators can get access to global markets and sell their work
You can use an NFT, your digital asset, as collateral in a DeFi platform and borrow cryptos
Content creators can claim resale royalties directly by retaining the ownership rights
NFTs should have an owner and the information regarding this are publicly available for anyone to verify
You can trade an NFT piece of art for an NFT ticket for a show
How Do NFTs Work?
“Be original, show off your content, and earn royalties.”
NFTs has its own unique properties:
Every NFT will have an owner and its information is easily verifiable
Each minted token will have its own unique identifier
NFTs are not directly interchangeable with other tokens 1:1
NFTs live on Ethereum and they can be bought and sold on any Ethereum based NFT market.
If you own an NFT:
You can easily prove the ownership of it
No manipulation can be done in anyway
If you sell an NFT, in some scenarios the original owner will get resale royalties
You can keep it safe in your wallet on Ethereum
If you create an NFT:
You can decide the scarcity for your NFT
Easy to prove that you are the creator
Earn royalties every time your NFTs are sold
Sell it on any P2P or NFT market.
Get An Idea To Create NFT?
WDD is a proud partner for many businesses that operate on DApps, NFT, Cryptocurrency and other blockchain-based solutions. Our team is capable of creating NFTs, NFT marketplaces (DApps), DeFi Platforms, Cryptocurrencies on ERC, BTC, TRC, Stellar protocols. Talk to us today to know how we can help you to make your dreams come true.