Nowadays, NFT's are in trend. You must be hearing the word 'NFT' on social medias, newspapers, news channels and various other sources. But what exactly is an 'NFT'?
Today, we'll discuss about NFT's and understand what they exactly are and what's going on around them that has created a great hype among the people.
The term "NFT" stands for Non-Fungible Tokens. In layman language, NFT is a possession which is unique and one of its kind. If we go deep into the concept of NFT's then basically they are digital assets that one possess. Each NFT has a specific identification code that distinguishes it from the other.
A NFT works upon the blockchain technology which is the same that is used in cryptocurrencies. It can be sold and traded on various online platforms like Binance NFT Marketplace, crypto.com, WazirX NFT Marketplace etc.
A NFT can be literally anything( manual drawings, graphics, art, animations, music, even real estate). Most of the NFT's are based upon the cryptocurrency Ethereum(ETH). So now after reading all this, you might be getting an idea about what exactly an NFT is but here comes the main question that "WHY NFT?" So to answer this question, let's take a simple example. Suppose you have a book and you customized the book with a cover of your own and bordered the pages using tapes. So now, it is one of its kind. And now, if you want to sell that book to a buyer for example at Rs. 500 and if the buyer wants to own the book then there has to be a way to prove that he/she owns it. We considered a physical book as an example but what if it's an image or a video or a music file that is unique and only one of it's kind. Then, how do you prove the ownership of that one unique piece? This is done by creating an NFT. That is how NFT's work.
They are a legitimate way to transfer the ownership of a digital item in such a way that your ownership remains on record and is proven. It cannot be edited or modified. If we consider an image(of a monkey let's say) then you can find numerous images all over the internet that are openly accessible for downloading and using without any copyright issues. And on the other hand, if I create an image and post it online then there is no legit way to prove that I'm the owner of that thing. Also if I list it for sale online on multiple image selling platforms, then too there is no legitimate proof that I'm the owner and I'm ready to transfer the ownership to someone, whosoever is ready to pay me for my work.
I'd rather create an NFT of the same image and then post it online on certified NFT Marketplaces for sale. This will ensure the ownership of the NFT and also prove it's uniqueness. If anyone tries to copy my work then I can easily claim a copyright by showing that I'm the valid owner of this NFT.
The above is an image of the collection of the famous "Bored Ape NFTs". These NFT's are very expensive and some of the owners of these NFT's are celebrities like Eminem, Serena Williams, Shaquille O'Neal, Justin Bieber etc.
At last, we come to a conclusion that NFTs are the real game changer and blockchain technology is going to change the entire world because now technology has a way by which you can define 'Ownership'. In the coming years, NFT Marketplace is going to boom and investors seeking towards investing on NFT's can definitely consider investing by doing the required research before exploring the NFT Marketplace.
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