What is NFT? Full explanation for everyone.
An NFT token (non-exchangeable token) is a unique digital certificate, which is stored in a blockchain and guarantees the originality of the object and gives exclusive rights to it. This concept comes from the world of cryptocurrency.
Non-exchangeable tokens cannot be discreetly swapped, split, or replaced. The system is suitable for securing rights to a unique object — a work of art, real estate, an artifact in a computer game.
Simply put, each record in a blockchain is called a token. In an open blockchain, all tokens are like coins of the same monetary value, equal and interchangeable. That’s how cryptocurrency money works: for example, one bitcoin can be easily replaced with another, and nothing will change.
But Non Fungible Token (NFT) technology is a game changer and works differently. A non-fungible token is a digital coin that cannot be replaced with another token without changing the value and essence of the object.
Like cryptocurrency, NFTs are created in a blockchain, which acts as a database to record all transactions. Blockchain guarantees the authenticity of non-interchangeable tokens. Thanks to this system, any user can verify the original and history of a particular NFT through the blockchain.
By purchasing an NFT token, the user acquires a certificate for the work. The work itself does not move anywhere. It sits on perpetual storage (IPFS). The certificate is essentially lines of code which confirm that it is the owner of the token who owns the original copy of the object. The NFT token is compared to a painting that may belong to a gallery, museum, or individual, but the audience can see it in a catalog or exhibition.
NFT tokens are sold in online marketplaces that operate like AliExpress or Wildberries. The creators of non-interchangeable tokens put them on marketplaces and wait for offers from buyers.
You can even create an NFT token yourself. To do this, you need to take a digital object (picture, music track, photo, etc.), register in a special marketplace (for example, on the sites Rarible or OpenSea) and upload there the object with a description and price. On many services you will have to pay a fee for the creation of a blockchain record a unique token.
