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Home » What are NFTs? How do non-fungible tokens work? Explained.

What are NFTs? How do non-fungible tokens work? Explained.

What are NFTs? How do non-fungible tokens work? Explained.

Non-Fungible tokens are of kind Digital art pieces and cannot be replaced with another thing.

That is why these are known as “non-Fungible”.

“Fungible” on the other hand are cryptocurrencies such as bitcoin, ethereum, dogecoin, etc. which can be traded by one another and you’ll have the same thing. 

If you trade with NFTs, you will have different identities of items rather than the same things. This unique feature makes NFTs so hyped and makes people buy them at very high prices (even in millions of dollars).

Explained at a higher level- Most of the non-fungible tokens work on the principle of the ethereum blockchain. Ethereum is also a cryptocurrency just like dogecoin, Binance, Bitcoin, AAVE, ICP, etc. NFTs are evolved from the ERC-721 standards.

Since ethereum created its blockchain and the majority of NFTs runs on the ethereum blockchain, any cryptocurrency can create its blockchain and make their own NFTs market.

NFTs market has grown quite a lot. The auction on NFTs biggest platform Opensea now has 8-figure auctions in it.

This means that these virtual arts and collections are now as popular and equivalent to a well-known physical art collection such as Picasso, Mona Lisa, Starring night, etc. 

mona lisa painting, famous arts, physical painting

If you own an NFT, you are the sole proprietor of that art piece. Even though NFTs, arts, music, videos, collections can be copied and shared as many times as others but the main owner will have all the rights with that NFT. 

This can be understood as physical art- let’s say a Mona Lisa painting.

The owner of that physical art has all the rights to the actual paintings and can sell later at a higher price whenever he/she wants but all the copies of these physical paintings are sold worldwide and people share them without the owner’s consent.

The same is the case with the NFT. The owner has the copyright and value of that particular item but everyone can use them anytime and however, they want to. That’s the beauty of non-fungible tokens and cryptocurrency.

beeple nft, most expensive nft, 69, million dollar, 5000 days, art, digital art, virtual world, meta verse, facebook, everyday, boring, cryptocurrency, blockchain, web 3.0,
What are NFTs? How do non-fungible tokens work? Explained.
This beeple named NFT is the most expensive nft in the world- worth: $69 million.

These assets are one-time investments in an art piece or collectible and the rest of blockchain technology and the much-hyped names of it do the rest of the work for you.

If the right item/art/collectible is purchased and held for a considerable amount of time to sell online, you can get up to 10-100X the price with which you have bought it.

Most of the NFT can be purchased using ethereum. The real money is converted into ethereum and then these NFT can be purchased.

For gaining profits and increasing your finances and net worth, you should do thorough research before holding any Web 3 item or collectible.

Some of the most popular NFTs such as “Bored Ape Yatch Club”, “kittens”, “Mutant Ape”, “Justin Bieber NFTs”, “Marshmello NFTs”, etc are gaining high rise in their prices and people are eagerly purchasing them in aiming to gain profits and keeping it as assets with them.

The interesting note is that Web 3 is also including virtual lands with them in which you can create your land and do anything you want to do with it. 

Every new owner who takes over an NFT from the previous owner works on the principle of smart contracts.

Recently Justin Bieber did his show on the metaverse stage where he performed and sang for his audiences virtually.

In the metaverse universe, you get the digital tickets to get into the show and enjoy all the performances mentioned, steve Aoki, Marshmello, Alan walker, etc. All the big names, you name it and shortly, every celebrity will be on the web 3 universe performing their art and showcasing talent.

It’s never too late for us for entering into the web 3.0 world and experiencing and creating magical stuff no one has ever thought of. Creating your apps and websites using ethereum blockchains is not rocket science.

A lot of marketplaces accept ethereum as the payments options and anyone can trade in them inside the virtual space.

They can even ask for any currency they want their NFTs to exchange from.

Logan Paul (Famous Youtube) purchased dozens of cryptos and NFTs while also concerning about the effects of global warming and electricity consumption when the NFT is traded.

Since NFT uses the same blockchain technology as some very high-energy consuming cryptocurrencies. 

That is why many artists are holding the NFT assets for saving climate from greenhouse gases and emissions. 

Some of the drawbacks of buying NFTs are -:

  • One reason can be the uncertainty of its value. 
  • Although these are considered Digital assets, Web3 experts consider them as confusing assets as these can be in billions of dollars at one point in time or crash severely with no value of their own at all.
  • The authenticity with the owner is reserved until his password is safe with him/her, unlike an art piece. If he/she cannot retrieve the password, then the art of any amount will be useless and lost with it.
  • It hugely affects the environment (due to the emission of greenhouse gases on mining cryptos and NFT’s.
  • Many concerned people are aware of resolving this issue by not selling the nft or through canceling future drops of their collectibles which is a downside.

You can also create your own NFT and mint it so that other interested people can buy it, hold it, and if the price increases they can sell it at a higher margin and gain profit out of it.

This art collection stuff in a decentralized world of the web is a virtual digital platform that performs many complicated tasks and smart contracts at the backend to make it authentic to the owner and issue the tokenized piece of land in the web 3.0 universe.

Is Non-Fungible Token Safe for every individual?

The important aspect of NFT and cryptocurrencies is that it’s pretty much secure from hacking as well as unique. As blockchain technology uses random numbers and arithmetics to keep the data secure, it’s much likely that your data will be safe with encryption on the blockchain database.

But if you lose access to your passwords and information, it is very difficult to resolve the data lost or even cope with the idea to get access to your information.

This thing should be kept in mind before investing in the Web 3 virtual world. 

Blockchain will be the next modern Financial system and the majority of individuals including banking institutions will use blockchain technology to keep data and monetary storage safe and encrypted.

Legally showcasing your info publicly in the digital world seemed difficult earlier but with the entry of the Web 3 concept, every individual in the world can showcase their piece of work and make a livelihood out of it right from their home.

kittens, nft, million of dollars, the clever mint.
An art piece of cryptokitties. Face when you know you are worth more than an average person’s annual income.

This online work and craze are influencing people to take part in this vast universe of metaverse and web3 world. We are only witnessing the initial phase of this virtual universe. 

There is a lot more to expand and explore in this new era of the digital world.

Stay updated and read more stuff to gain insights on the Web 3.0 revolutionary era for the first time in history. 

Non-Fungible tokens are of kind Digital art pieces and cannot be replaced with another thing.

That is why these are known as “non-Fungible”. “Fungible” on the other hand are cryptocurrencies such as bitcoin, ethereum, dogecoin, etc. which can be traded by one another and you’ll have the same thing. 

if you trade with NFTs, you will have different identities of items rather than the same things. This unique feature makes NFTs so hyped and makes people buy them at very high prices (even in millions of dollars).

Explained at a higher level- Most of the non-fungible tokens work on the principle of the ethereum blockchain. Ethereum is also a cryptocurrency just like dogecoin, Binance, Bitcoin, AAVE, ICP, etc.

NFTs are evolved from the ERC-721 standards.

Since ethereum created its blockchain and the majority of NFTs runs on the ethereum blockchain, any cryptocurrency can create its blockchain and make their own NFTs market.

NFTs market has grown quite a lot. The auction on NFTs biggest platform Opensea now has 8-figure auctions in it.

This means that these virtual arts and collections are now as popular and equivalent to a well-known physical art collection such as Picasso, Mona Lisa, Starring night, etc. 

If you own an NFT, you are the sole proprietor of that art piece. Even though NFTs, arts, music, videos, collections can be copied and shared as many times as others but the main owner will have all the rights with that NFT. 

This can be understood as physical art- let’s say a Mona Lisa painting.

The owner of that physical art has all the rights to the actual paintings and can sell later at a higher price whenever he/she wants but all the copies of these physical paintings are sold worldwide and people share them without the owner’s consent.

The same is the case with the NFT. The owner has the copyright and value of that particular item but everyone can use them anytime and however, they want to. That’s the beauty of non-fungible tokens and cryptocurrency.

These assets are one-time investments in an art piece or collectible and the rest of blockchain technology and the much-hyped names of it do the rest of the work for you.

If the right item/art/collectible is purchased and held for a considerable amount of time to sell online, you can get up to 10-100X the price with which you have bought it.

Most of the NFT can be purchased using ethereum. The real money is converted into ethereum and then these NFT can be purchased.

For gaining profits and increasing your finances and net worth, you should do thorough research before holding any Web 3 item or collectible.

Some of the most popular NFTs such as “Bored Ape Yatch Club”, “kittens”, “Mutant Ape”, “Justin Bieber NFTs”, “Marshmello NFTs”, etc are gaining high rise in their prices and people are eagerly purchasing them in aiming to gain profits and keeping it as assets with them.

The interesting note is that Web 3 is also including virtual lands with them in which you can create your land and do anything you want to do with it. 

Every new owner who takes over an NFT from the previous owner works on the principle of smart contracts.

Recently Justin Bieber did his show on the metaverse stage where he performed and sang for his audiences virtually.

In the metaverse universe, you get the digital tickets to get into the show and enjoy all the performances mentioned, steve Aoki, Marshmello, Alan walker, etc. All the big names, you name it and shortly, every celebrity will be on the web 3 universe performing their art and showcasing talent.

It’s never too late for us for entering into the web 3.0 world and experiencing and creating magical stuff no one has ever thought of. Creating your apps and websites using ethereum blockchains is not rocket science.

A lot of marketplaces accept ethereum as the payments options and anyone can trade in them inside the virtual space.

They can even ask for any currency they want their NFTs to exchange from.

Logan Paul (Famous Youtube) purchased dozens of cryptos and NFTs while also concerning about the effects of global warming and electricity consumption when the NFT is traded.

logan paul, nft, web 3, metaverse, What are NFTs? How do non-fungible tokens work? Explained.

Since NFT uses the same blockchain technology as some very high-energy consuming cryptocurrencies. 

That is why many artists are holding the NFT assets for saving climate from greenhouse gases and emissions. 

Some of the drawbacks of buying NFTs are -:

  • One reason can be the uncertainty of its value. 
  • Although these are considered Digital assets, Web3 experts consider them as confusing assets as these can be in billions of dollars at one point in time or crash severely with no value of their own at all.
  • The authenticity with the owner is reserved until his password is safe with him/her, unlike an art piece. If he/she cannot retrieve the password, then the art of any amount will be useless and lost with it.
  • It hugely affects the environment (due to the emission of greenhouse gases on mining cryptos and NFT’s.
  • Many concerned people are aware of resolving this issue by not selling the nft or through canceling future drops of their collectibles which is a downside.

You can also create your own NFT and mint it so that other interested people can buy it, hold it, and if the price increases they can sell it at a higher margin and gain profit out of it.

This art collection stuff in a decentralized world of the web is a virtual digital platform that performs many complicated tasks and smart contracts at the backend to make it authentic to the owner and issue the tokenized piece of land in the web 3.0 universe.

Is Non-Fungible Token Safe for every individual?

blockchain, non fungible token.
Blockchain

The important aspect of NFT and cryptocurrencies is that it’s pretty much secure from hacking as well as unique. As blockchain technology uses random numbers and arithmetics to keep the data secure, it’s much likely that your data will be safe with encryption on the blockchain database.

But if you lose access to your passwords and information, it is very difficult to resolve the data lost or even cope with the idea to get access to your information.

This thing should be kept in mind before investing in the Web 3 virtual world. 

Blockchain will be the next modern Financial system and the majority of individuals including banking institutions will use blockchain technology to keep data and monetary storage safe and encrypted.

Legally showcasing your info publicly in the digital world seemed difficult earlier but with the entry of the Web 3 concept, every individual in the world can showcase their piece of work and make a livelihood out of it right from their home.

This online work and craze are influencing people to take part in this vast universe of metaverse and web3 world. We are only witnessing the initial phase of this virtual universe. 

There is a lot more to expand and explore in this new era of the digital world.

Stay updated and read more stuff to gain insights on the Web 3.0 revolutionary era for the first time in history. 

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