Author : Kenno
Date : Dec 01,2022
Non-fungible token, a crypto digital wrap around some kind of digital asset such as an image or video file.
Built using the same technologies as cryptocurrency NFT has become popular of late as they are a method of proving ownership. Once the NFT is created or minted it is non-fungible meaning it cannot be copied, substituted or sub-divided; its ownership is logged in the respective blockchain.
The most common NFT blockchain is Ethereurm however many others have emerged due to the high transaction fees on the ethereum network.
Fungible examples are traditional money, for example USD can be converted to GBP or Euro or Yen, these are fungible, they can be converted from one form to another and back again.
Non-fungible Token is what makes NFT images and art work valuable as the ownership can be clearly seen in the blockchain.
NFT also allows creators and artists to add a percentage royalty so when the NFT is sold they continue to receive a percentage that can vary from 0 to 10%.
When people today refer to NFT they are referring to artwork that is purchased from platforms like Opensea and Rarible and is an asset class that has a cryptocurrency value.
NFT investors buy NFTs during initial drops and then sell for more crypto money on platforms like Opensea and rarible.