NON FUNGIBLE TOKENS

NON FUNGIBLE TOKENS

Subject : Science & tech

Context : Art investors traditionally rely on galleries and auction houses to find new and exciting art, but emerging NFT technology is bringing about a revolution.

Concept :

What is a NFT?

• It is a class of cryptocurrency that has no standard value but a unique value that is provided for the commodity exchanged against it.
• NFT can be understood as a digital file whose unique identity and ownership are verified on a blockchain.
• The blockchain is a kind of a public ledger on which anyone can verify the authenticity of a NFT and check its ownership.
• These are created by uploading files and are not mutually interchangeable as each one has a unique value.
• Non-fungible means that something is unique and cannot be replaced with something else.
• NFTs are tokens that we can use to represent ownership of unique items. They let us tokenise things like art, collectibles, even real estate.
• Powered by smart contracts on the Ethereum blockchain, NFT can only have one official owner at a time– no one can modify the record of ownership or copy/paste a new NFT into existence.
• As for example, a bitcoin is fungible, that is it trades one for another bitcoin. One has exactly the same thing for.
• A one-of-a-kind trading card, however, is non-fungible. If you traded it for a different card, you would have something completely different.

Ethereum Blockchain

• Ethereum is a cryptocurrency platform that uses smart contracts – rules that execute automatically exactly as written.
• Ethereum advocates that their platform will give users more control over their online data. With traditional apps and services, the platform owners have control over, what their users do online.
• For example, Gmail has a copy of all of its users’ emails, and Twitter habitually bans accounts that don’t follow its rules. Ethereum is a platform for building applications similar to the apps we use today, but without centralized control.