What is NFTY and how we get ownership over NFTs?

Category: Technology

Everyone these days is wondering how can just pictures be worth million dollars! how did an american graphic designer beeple sold his NFT for $69 millions. We have got this sorted for you. Here are the reasons why NFT's worth a miilions suddenly. WHAT IS AN NFT? Non-fungible token. But my friend, that doesn’t make it any easier to understand. So let's dive in deep for it's meaning. Non-fungible means something which is unique and cannot be exchanged for anything else. For example, a bitcoin is fungible — trade one for another bitcoin, and you’ll have exactly the same thing. A one-of-a-kind trading card, however, is non-fungible. If you traded it for a different card, you’d have something completely different. In contrast, your favourite limited edition football player’s card is an example of a non-fungible commodity. Each card is unique and can be treated as collectable. A card with one player doesn’t usually have the same value as the card with another player. Even with two same cards, other factors such as the year of production or preservation of the card can make a difference. Also, a piece of art or a painting created as one unique copy is an example of non-fungible. But what makes NFT's sell at such a higher value? Blockchain technology allows NFTs to be publicly authenticated, serving as a digital signature certifying the ownership and originality. Getting ownership over some digital art let's us to consider it as a digital asset. Most importantly they cannot be exchanged for a like-for-like basis as each one is unique in contrast to fungible assets like dollars, stocks or bars of gold. You can copy a digital file as many times as you want, including the art that’s included with an NFT. But, then again NFTs are designed to give you something that can’t be copied: ownership of the work (though the artist can still retain the copyright and reproduction rights, just like with physical artwork). To put it in terms of physical art collecting: anyone can buy a Monet print. But only one person can own the original.