Non-fungible tokens (NFT) are public digital assets based on blockchains that were born with BTC in late 2008. created to represent unique digital objects and confirm their ownership. This could be a digital image, an item in a game or a collectible card.
Just like a traditional crypto asset, NFTs can be owned, transferred or sold to another crypto wallet user and ownership can be easily tracked and confirmed. Unlike other crypto-assets, however, they have intentionally limited fungibility.
Eg, if an artist links his work to an NFT token, the future owner of that work receives it along with a unique token that confirms the authenticity of the digital work and its ownership, in the world of cryptocurrencies, is the digital representation of an asset – such as money, property or artwork.
Are the non fungible tokens (NFT) safe?
In practice, being a non-fungible token means being a proprietary digital certificate that anyone can see and confirm authenticity, but no one can change.
Example: A person can access the Internet and download the digital work of Paris Hilton, for example, which was transformed into NFT, this reproduction downloaded, however, is just a copy, without any commercial value.
The actual possession of the work is for sale for US$1.1 million and belongs only to the individual who has the non-fungible token, which works as a digital certificate of ownership. Going a little deeper, this proof of authenticity is basically a computer code.
OK, but isn’t it possible to copy that code? is that really secure?
No, because it is registered in a blockchain, a large public and immutable database via a smart contract. These smart contracts are programmes stored in a decentralised network that execute themselves according to pre-established rules, without the involvement of an intermediary to control it.
In short, everything that is stored in the blockchain through them can be checked by all users. This occurs because of algorithms that establish what can and cannot be done in the system.
Ethereum’s network is the most widely used for the development of the non-fungible tokens. To run on it, NFTs must follow a standard, a set of programming rules called ERC-721. Other blockchains, however, also allow the creation of NFTs, such as Tezos, Solana, EOS and Binance Smart Chain.
How to buy NFTs?
The purchase process is simple: just register on a platform, have enough funds in cryptocurrencies, and purchase the desired NFT. Each marketplace, however, has its own characteristics, and accepts different digital assets.
Some of the main platforms are as follows: