What are NFTs & how do they work? Step-by-step guide:
Understanding NFTs and How They Work:
NFTs have emerged as the most innovative development of our fast-changing digital world. NFTs have managed to create enormous interest among artists, collectors, and investors worldwide and altered how we think about ownership in a virtual space. So, what are NFTs? What do they do?
NFTs is a short form for non-fungible tokens. NFT represents ownership of some unique thing or piece of content as digital assets. Art, music, videos, virtual lands, and even digital clothes are some of these products. NFT is non-fungible, unlike cryptocurrencies like Bitcoin and Ethereum, which are fungible and can be used on a one-to-one basis directly. The token, being non-fungible, has properties that make it differentiable, and that’s where NFT derives value in uniqueness.
Traditionally, most NFTs are built using blockchain technology, and by and large, on the Ethereum blockchain. What is essentially a decentralised ledger guarantees that the NFT has been created and possesses real authenticity and provenance because the ownership and transaction history are recorded in a way that is secure and irreversible.
