NFT Token
discuss about NFT which is currently on the rise among cryptocurrency investors.
Before we dive deeper into what NFT is, we must first know what NFT is and how it works.
NFT or Non-Fungible Token is a crypto technology such as a digital certificate that certifies the party who owns the photo, video, or other virtual form.
NFT or often referred to as a Non-Fungible token is a work that can be in the form of an image, video, or other kind of artwork and is often paid for using cryptocurrency. So if you have a piece of art, or something like that, you can sell it in NFT tokens. One popular example is where Twitter CEO Jack Dorsey sells tweets for 2.5 million US dollars.
More precisely, NFT uses a blockchain technology base, but it is different from bitcoin. If Bitcoin is like a coin, then MFT is a digital asset tied to a unique digital asset. That way, users can only own Non-Fungible Tokens through digital ownership records of physical assets.
NFT itself has been around since 2014 and has been discussed a lot lately. The reason NFT tokens are popular these days is because NFT is considered the most effective method for trading artwork or other things. This is because every artwork owner sells his artwork in the form of NFT, it will have a unique code of ownership of the work so that the owner can claim the work is proprietary and of course avoid duplication.
Here are some reasons why you should include NFT in your portfolio.
NFT has no exchange rate
NFT itself has its own uniqueness and is sold at different prices so that each NFT does not always have the same value so that an NFT cannot be exchanged for other NFT assets or other cryptocurrencies.
NFT is on the Rise.
Recently NFT Tokens are getting more and more popular among crypto creators. This is because NFT tokens can be auctioned.
Various works of art that can be used as Non-Fungible Tokens are works of art in the form of videos or images that can be stored and viewed by many people. However, there is only one person who has the original version which comes with a digital ownership certificate stored in the blockchain.
For example, a painting by an artist that turns out to be interesting, so many people duplicate the painting for sale. However, it is the painter who has a certificate of ownership of the work, or someone who does own the original version of the painting.
How NFT tokens work
Non-Fungible Tokens are part of a distributed public data ledger that records every transaction activity in their scope. Usually Non-Fungible Tokens are printed uniquely that represent the form of objects or intangible objects, for example Paintings, Video Games, Music Albums, Logos, and so on.
Simply put, Non-Fungible Tokens are the same as collectors of physical or digital goods that are converted into tradable crypto assets. Buyers will get special ownership rights from the Non-Fungible Tokens they buy. In addition, Non-Fungible Tokens can only have one owner at a time.
The unique data listed on the Non-Fungible Token makes it easy to verify the ownership of the buyer and makes it possible to transfer tokens between Non-Fungible Token owners. The original owner or creator of the Non-Fungible Token can also store specific data and information in it, for example the signature of the owner of the painting.
Purpose of NFT
The Non-Fungible Token was created to provide a space for artists and content creators to have a unique experience selling their work. For example, an artist no longer relies on galleries or auction houses to sell their work.
Meanwhile, art creators or artists can sell their work directly to consumers using Non-Fungible Tokens which can increase their chances of getting more profits.
