Non-fungible tokens, or NFTs, are enjoying unprecedented enthusiasm among internet investors, especially in the digital art world. But what is it? We will explain to you.
Non-fungible token in English, “non-fungible token” in French, NFTs are non-fungible currencies of digital tokens, in other words, a cryptocurrency or virtual currency with a single entity, intended to be exchanged between peers through a decentralized protocol called blockchain. This technology is well known to digital investors. It is based on the storage and transmission of protected confidential data. The principle is that this information can be quickly exchanged between authorized users. In this ecosystem, it is the blockchain that centralizes data and acts as a “central bank”. It is she who publishes the internal rules and lists transactions in a special ledger. Everything is encrypted: the amount of transactions, as well as the contact details of the issuers, recipient.
NFT, exchangeable currency 2.0, but not fungible
Unlike bitcoins, which are fungible, the characteristic of NFTs is that they are not fungible, that is, the protocol of this cryptocurrency does not allow for fungibility through a similar meaning. This is security for the blockchain recipient, who, in fact, can single-handedly determine the terms of the exchange: such an NFT can only be exchanged for such other previously designated NFTs. In the digital creative industry, NFTs can quickly add value to an object. This is how, since their inception in 2017, NFTs have conquered the digital world of art and games.
NFT Certificate of Authenticity 2.0
In addition to the name of the owner, the NFT contains information about the authenticity of the property, its origin, as well as the history of sales. Every transaction is re-secured across the blockchain. These tokens are intended for receiving digital works such as image, drawing, photography, video, sound, animation, digital game. Anything that is unique in nature and can be stored digitally is bound to increase in value through the blockchain. The value of a product also depends on its rarity. For example, in March 2021, a 10-second video called “Everyday” created by the American artist Beeple was sold for 69.3 million dollars: the most expensive NFT in the world!
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