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INTRODUCTION TO NFT (NON-FUNGIBLE TOKEN)
The acronym NFT has gradually become one that cannot be ignored no matter how we tried. Right from its inception into the crypto space to date, there have been countless stories of how a mere artwork, 3D image, or just an ordinary picture taken by a mobile phone camera has turned into millions of dollars. Most times Newbies are found between the line of belief and disbelief. They are either not in tune with what NFT is or they are completely not aware of how to go about it.
It is on this note that this article on the introduction of NFT was born.
What is an NFT:
The acronym NFT stands for Non-Fungible Token. For an item to be non-fungible means that such an item is not interchangeable with other items. This is because of its unique property. The unique properties of such items are what defines them instead of their value. For instance, your computer, furniture, or song file does not have the same value as the dollar bill or any other currency you can think of. This is why you can not get the same value as your 200-dollar bill when you use it to purchase a mobile phone.
To further explain, let’s look at the meaning of fungible items. These are items that are interchangeable which means that they can be exchanged with each other. This is because they are defined by their values and not their unique properties. Examples of such items are ETH, USD, BTC, EURO, Pounds, etc.
Let’s say you have a thousand dollars and you exchanged it for BTC or another cryptocurrency. You will get the same value of a thousand dollars but in BTC. This is because the dollar bill is interchangeable with the BTC and their values define them.
Having stated that I believe you have been able to understand what non-fungible tokens are. Remember, as long as the value is the same, it is interchangeable.
Looking at the explanation above, you can see the reason why an image, song, or other items can be sold at such high prices. Mind you, NFTs are anything digital such as drawings, music, real estate images, and so many other things.
Some of the Characteristics of an NFT
- NFTs are measured by their unique properties and not their values.
- NFTs are ways to represent anything unique as blockchain-based assets.
- NFTs are digitally unique which means that no two NFTs are the same.
- Every NFT must have an owner and it is of public record and easy for anyone to verify.
The important question will be, who can create an NFT?
Anyone including you can create and own an NFT. This can be done through numerous NFT marketplaces, for example; OpenSea which is one of the biggest NFT marketplaces. We also have Rarible, Atomic Market, NFTrade, Binance, X2Y2, Magic Eden and so many other NFT marketplaces.
You should note that these marketplaces have different amounts of gas fees which you will use to facilitate the listing of your NFT.
Pick a picture you love so much and choose any of this marketplace to begin your journey into the world of NFT.