NFTs or NFTs Non-fungible Tokens... Overview

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2022-01-28

Recently, the news of NFTs, or NFTs, and the millions that investors are making in this field has exploded, as Christie's auction house sold its first artwork as NFT which was a collection of works by digital artist Beeple for 69.3 million USD, which made it attract The eyes of the whole world.
As the obsession with it increases day by day, we see big names like electric car giant Tesla, football club like Barcelona and Paris Hilton and many more brands, celebrities and tech giants racing to launch or even buy their new NFT collection!!

First: What is NFT? And what does it represent?

They are a unique type of crypto-asset and a unique metadata that distinguishes them from one another. They are non-fungible tokens registered in smart contracts on the Ethereum Blockchain.
The NFT differs from exchangeable tokens such as cryptocurrencies, which are identical to each other, which enables us to use them in commercial transactions.
For more understanding and in simpler language, NFT transforms digital artwork and other collectibles into unique assets, which can be anything visual such as graphics, video and music.
In other words, NFTs are proof of ownership based on blockchain technology, to associate their value with the value of a unique digital asset (such as jewelry, digital paintings, gems or any artwork and video game accessories) but also can be a tweet on Twitter, so in simple terms we can say that NFTs They are exclusive property rights just like proof of ownership of physical items but in their digital form.
To be more clear, assuming that you purchased an original artwork of an artist, it practically became your property, but others could look at it or photograph it, but they don't own it, and by the same mechanism, NFTs owning any digital piece of art means that it became yours but Internet users can use it without them be the property of them.

Second: What is the difference between replaceable and non-replaceable tokens?

All cryptocurrencies from Bitcoin, Doge and Ether are exchangeable tokens, where each currency can be exchanged for a second currency similar to it, but for non-fungible tokens NFTs, they are a type of digital asset, unlike digital currencies that have a monetary value, each NFT has a unique rating that cannot be replaced. For example, a digital panel cannot be replaced by a second panel with the same characteristics.

Third: How do non-replaceable NFTs work?

The NFT is based on the same blockchain technology on which digital currencies depend, specifically the same blockchain that the Ethereum currency depends on, but with a different information storage system that works in a different way than the Ethereum currency itself.

Fourth: What is a Blockchain?

It is a network of computers that track the operations of its network, creating huge lists to register owners and their properties from NFTs and ensure that they remain in his portfolio.
Blockchain first appeared in 2009 and its main purpose was to create the digital currency Bitcoin, which is a data encryption technology, that is, the data or money that is traded through it is anonymous. The two people, because the people in the blockchain system are just codes.
Bitcoin is the first digital currency built using the blockchain system, but this system is open source, which led to it being copied and applied to other digital currencies as well as NFTs.

Fifth: How to verify the origins of your NFTs

Its authenticity is confirmed by the blockchain technology that is based on it mainly, where its authenticity and authenticity can be verified in all transparency and clarity, as all owners are registered based on the blockchain technology, as NFTs are considered an official digital contract like the rest of the other digital contracts.

Sixth: What are the NFTs that can be sold?

Any digital file or digital asset can be sold as NFTs, such as graphics, video files, audio files, GIFs, and various other digital formats, and it can also be a tweet, as Jack Dorsey, co-founder and former CEO of Twitter sold his first tweet as NFTs For $2.9 million, NFTs can also be a meme or comic. In 2021, the “Doge” meme, which depicts a Shiba Inu dog with NFT technology, was sold for $4 million, the meme that inspired the creation of the Dogecoin digital currency. But most forms of NFTs are now related to graphics and digital art.

Seven: How do I create a non-fungible NFT token?

Creating an NFT is not difficult and is available to everyone. You can create an image, GIF, video, or audio clip in any way, including various drawing programs, photo editing, and even Windows Paint. The design or digital file must be unique and distinctive.
Once you have prepared the digital file, you must know the blockchain or digital currency that you want to associate your NFT with, and Ethereum is the most used digital currency with NFTs files, and the advertiser needs some Ether or Ethereum, as most stores charge fees to display and sell products On it, except for the OpenSea platform, which provides the process for free.
But the user needs a digital wallet to create an account and register on it, and after registration, all the user has to upload the digital files and write some details.

Eighth: How to Sell Your NFT Redeemable Tokens

After you display your NFT on any of the digital marketplaces and stores, the NFT becomes bidable by buyers.