Are you ready to learn about NFTs, the new buzzword in the world of digital assets? Maybe you’ve heard of NFTs before, and you’re wondering what all the fuss is about. Or perhaps you’re completely new to the concept. Either way, you’re in the right place.
When you hear the term NFT, you might initially think of cartoonish apes and kitties that sell for millions. But there’s so much more to NFTs than just cute digital collectibles. In fact, NFTs have the potential to revolutionize the worlds of finance, art, trademark law, and even real estate.
So, what are NFTs exactly? Simply put, NFTs are digital assets that contain identifying information recorded in smart contracts. These smart contracts are basically sets of instructions that are designed to carry out a specific action if certain conditions are met.
One of the defining characteristics of NFTs is their uniqueness. Unlike fiat currency or Bitcoin, NFTs are indivisible and unique. The information in the smart contract makes each NFT unique, and as such, they cannot be directly replaced by another token. Each NFT is one of a kind, which means that they cannot be swapped like for like.
NFTs can be used to represent both tangible and intangible items. They’re usually linked to a specific asset and can be used to prove ownership of digital items like game skins or physical assets like real estate. In recent years, NFTs have become increasingly popular for representing everything from virtual land parcels to artworks and ownership licenses.
So, how do NFTs work? NFTs are built on top of blockchain technology, which is a decentralized digital ledger that allows for secure and transparent transactions. The most popular blockchain for NFTs is Ethereum, but there are other blockchain platforms that support NFTs like Solana, NEO, Tezos, EOS, Flow, Secret Network, and TRON.
NFTs are bought and sold on NFT marketplaces like OpenSea, Rarible, Binance, and Coinbase. These marketplaces allow buyers and sellers to trade NFTs using cryptocurrency.
In the next lesson
Now that you have a basic understanding of what NFTs are, you might be wondering why this technology even came about. In the next lesson, we’ll explore the value-add of NFTs and why they’re so important for the future of digital assets. So, stay tuned!
