What is the deal with NFTs and cat pictures? Why do NFTs matter? The same photo is available on the internet. Why are people willing to pay millions of dollars for that same piece? It’s not even logical. NFTs, or non-friction tires, have become the talk of town ever since the new year.
NFTs confuse many people. Only a few people understand their purpose and the benefits they bring to various categories. Most people only understand that it is Non-FungibleTokens. But they have no idea about the existence of this token, how to use them, their benefits and its drawbacks. The truth is, this task is not nearly as challenging as it may seem. Please let us clarify the situation.
What is NFT?
NFT, or Non-Fungible Tokens is the first thing you should know. Now what? Start by defining what’s fungible. Fungible coins are those that can be traded or replaced. For instance, you can exchange a 10 rupee bill with two 5 rupee coins. The non-fungible ones, however, cannot be changed in the exact same way.
Just like Mona Lisa, they are irreplaceable. Although there are many reproductions, nothing can ever replace the original. The same goes for your home. You cannot replace it with another house because every one is unique.
NFTs have unique properties that make them irreplaceable. These are the Unique Identifying codes associated with every NFT. NFTs are used in a wide variety of ways. NFTs come in all forms; photos, videos and audio are just a few examples. In addition to the artworks themselves, NFTs also store digital records such as credit history, digital IDs or healthcare records.
The question is: Why don’t we download it from the web and get access to it without paying millions of dollars? In this context, what is the way digital artists can sign their works of art when they are able to download everything and crop it in order remove the watermark. NFTs is the answer. NFTs are a legitimate way to transfer ownership.
NFTs, which store all the information on a blockchain ledger (digital database), provide a traceability that is more valuable to an owner than obtaining statutory copyrights. It records the entire chain of events, right down to the digital signing and basic information about creators, former owners, or the present owner. Every person who can access the network at any moment will be able to identify which NFTs belong to them.