What is NFT (Non-fungible tokens)?
NFTs are digital certificates that we can use to represent ownership of unique items. We can digitally certify things like art, collections, even real estate. They can only own one picture at a time and they are secured by the Ethereum blockchain. No one can change the ownership record or copy and paste an existing new NFT.
NFT stands for unchangeable token (coin). Unchangeable is an economical term you can use to describe things like items, song files, or your computer. These cannot be interchanged with other items as they have unique properties.
On the other hand, replaceable items can be changed because their value rather than their unique properties define them. For example, ETH or dollars can be exchanged because it can be exchanged for ETH / US dollar, or ETH / US dollar.
“Non-Fungible Token” means a digital asset (token) that cannot be divided and reproduced, that is, cannot be copied or duplicated. Unlike cryptocurrencies such as Bitcoin and Ether, which are “Fungible”, NFTs are unique digital assets. For example; You can split Bitcoin or Ether into chunks and buy them. You can exchange the same crypto currency in its own currency. However, the unique NFT does not allow the exchange with other coins or tokens, as there are no other similar ones. The producer or investor determines the value of the NFT.
To understand the NFT Logic a little better, you can access the NFT examples from the links below.
- A unique piece of digital art.
- A unique sneaker in the limited edition fashion line.
- An in-game item.
- An article.
- It’s a digital collection.
- A domain name.
- A ticket that gives you access to an event or coupon.