Category: NFT

What are NFTs and How do they Work?

In line with our tradition of bringing you the best NFTs news, we bring this post highlighting the meaning and functioning of NFTs.

What are NFTs?

NFTs, or Non-Fungible Tokens, are crypto tokens that allow people to buy or sell a unique piece of digital art using blockchain technology, making the buyer the only person worldwide to own that asset.

How do NFTs Work?

An asset becomes fungible when one can exchange with a similarly identical asset. For example, money is a fungible asset because you can exchange it for other currencies, all of which allow you to make purchases. Similarly, digital products like songs, pictures, ebooks are all fungible assets that you can copy multiple times. The problem, though, is that one needs intermediaries to prove ownership over such digital assets for transferring them to any other person. 

NFTs eliminate the need for intermediaries by embedding a unique ID into a token representing the digital asset. When an NFT is created, the blockchain automatically registers its ID. The ID becomes an NFTs identity card, enabling users to view and trace its entire history.

For more such exciting and eye-opening NFTs news, please stay tuned with us.