Description

An NFT or a non-fungible token is a digital asset, issued on a blockchain that represents real world objects like art, collectibles, music, in-game items, videos or sports highlights, and the list goes on. But what makes an NFT valuable? Basically, the same things that make anything valuable, how rare it is, the quality of the work, the name or brand involved in its creation, how easy it is to buy, and the price someone is willing to pay. Take art for example, big amounts of money are spent on rare pieces from well-known artists, the exact same applies for NFT. The difference is when you buy an NFT, you know for sure that you’re the one and only owner of that piece. This is because when an NFT is issued on a blockchain that brings the following uniqueness, proof of ownership, authenticity and permanency. Now, what does it mean that a token is non-fungible? More or less, it means that the token is unique and cannot be replaced with something else. For example, physical money or cryptocurrencies are fungible or interchangeable; take bitcoin, for example, trade one bitcoin for another bitcoin and you have exactly the same thing and exactly the same value as one bitcoin will always equal, you guessed it, one bitcoin. But take a kind of baseball card – that is non-fungible. If you traded it for a different card, you will have something completely different. The same goes for NFTs. Each one has a digital signature that makes it impossible to equal another one.

Additional information