Every thing you need to know about NFT as a beginner!
You must have heard about the founder of Twitter, Jack Dorsey, who sold his one tweet for under $3 million or must have heard about selling and trading cryptokitties or let's say in case if you are not aware of any of these, then you must have known about digital art or paintings being sold! Right?
These are all related to NFTs.
Don't know about it? No problem, let's clear your confusion.
What NFT is; let's talk about it!
Well, NFT stands for non-fungible token. What does fungible and non-fungible mean?
Fungible means anything that can be substituted or exchanged because they are similar to each other but still holds the same value. Consider James lend $20 to Ali, and he paid him back by giving him two $10 notes, fair right? So these kinds of assets, when substituted, hold the same value, are called fungible.
On the flip side, non-fungible is exactly the opposite of fungible; these assets can’t be interchanged or substituted. Let me explain with an example, Eiffel tower, a famous tower in Paris, consider, can you substitute it? No, right! There you go! Anything physical or digital that can’t be interchanged is non-fungible, for example, a house, a building, a theater ticket, paintings (digital or traditional/physical art), a video, cryptokitty - a blockchain game on Ethereum where you can buy, breed, collect, or sell virtual cats, etc. These assets hold unique traits that make them different, and there is nothing like them that means you can’t interchange them. These assets can be physical, meaning things that can be perceptible by touch are called tangible. Non-physical, meaning digital assets having a monetary value that is intangible.
What exactly NFT is, and what’s its use?
Now you will be better able to understand what NFT is. NFT, which stands for the non-fungible token, is a digital ownership certificate stored on an electronic ledger, i.e., Blockchain.
Purpose of development!
The primary purpose of NFT is you can sell non-fungible assets without the involvement of a third party, in it the buyer is in direct contact with the seller, which makes trading of one-of-a-kind assets more manageable and safe.
Not to forget, NFT is publicly verifiable!
Just as Cryptocurrency is a real-world application of Blockchain, NFT is the second application of Blockchain. So, it is a certificate of ownership of non-fungible assets; the person holding this token for a particular property is considered the actual possessor of that property (You can transfer ownership of that property from one person to another).
Is it climate-friendly?
This topic is still under debate. Some people think its carbon emission is imposing a negative impact on climate, but miners are still trying to solve this puzzle. As we know that Ethereum consumes about as much energy (electricity) as the whole Libya use, and we know NFT is connected with Etherum, which is responsible for the increase in carbon footprint. Hence it will obviously impose a negative impact on climate.