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2023-11-08 06:21:25

NFT Explained In 5 Minutes _ What Is NFT - Non Fungible Token _ NFT Crypto Explained _ Simplilearn

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Meet Susan , an aspiring painter .

She wishes to conduct an online painting exhibition for all her digital artworks .

However , as the exhibition is online , she is worried that her paintings won't be secure as anyone could easily forge or replicate them .

Her friend , Mark came to her rescue with an idea of NFT .

He suggested that Susan could buy NFTS for all her paintings as NFTS are trustworthy , easily transferable and will also maintain her ownership rights on her artworks .

Susan had no idea what NFTS were so , Mark stepped ahead and explained it to her NFTS .

Turn your digital assets into one of a kind by creating a unique digital signature which defines the ownership of your assets and that can be bought and sold for real money Cryptocurrency or any other asset like a non fungible token , A K A and FT non fungible tokens means that they are not interchangeable and each of them represents unique assets owned by a specific person .

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On the other hand , fungible tokens are interchangeable and can be divided into smaller units to form the same value .

For example , a $100 bill is fungible as you can exchange it with 5 $20 bills or 2 $50 bills .

But the painting of The Last Supper is non fungible as it cannot be generated in bulk .

Even if it is copied , it will not be authentic .

Each NFT contains distinguishable information like who owns the digital asset and who sold it , making them distinct and easily verifiable as it is impossible to forge such a certificate .

It will secure her paintings originality .

After learning what NFT is Susan was curious to know how exactly NFT works .

NFT basically creates a Blockchain based digital certificate for your digital collectibles , including games , music , art and many more .

This certificate gives your artwork a unique identity .

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The underlying technology and the programming language used by NFTS are the same as other cryptocurrencies such as Blockchain and the programming language , Ash or script .

NFT majorly exists on Ethereum Blockchain , a distributed public ledger that records all the transactions .

However , NFT is quite different from these cryptocurrencies .

Bitcoin and Ethereum are fungible tokens , which means if you trade Bitcoin or Ethereum for one another , you will have the same value or item in return .

Basically money .

On the other hand , NFT is a unique token .

Therefore , if you try to trade it , you may end up with something completely different in your hands .

Crypto punks is a remarkable example of NFT .

It enables you to buy , sell and store 10,000 collectibles with the proof of ownership being stored on the Ethereum Blockchain .

After exploring how NFTS work , Susan was convinced and bought NFTS for all her paintings .

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Due to this , her artworks were secured from any kind of forgery and also gave her artworks a particular value .

This contributed to increased sales too as everyone was easily able to buy the artwork without any fear .

All in all her exhibition was a complete success .

Similarly NFT has proved itself to be a boon in the lives of many others like Jack Dorsey , the CEO and co founder of Twitter with his very first and famous tweet just setting up on Twitter and Vignesh Andara famously known as Medico who bought $69.3 million worth of NFT art on be owing to its increasing popularity , people are now willing to pay hundreds of thousands of dollars for NFTS .

NFT has enhanced media exposure and special perks for aspiring artists like Susan on social media .

This popularity of NFT creates new opportunities for new art platforms , motivating people to buy art from internet platforms and promoting copyright or originality of digital assets .

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So here's a question for you .

What makes any item , non fungible a exchange ability ?

B unique digital signature C tradeability D distributed public ledger .

Please give it a thought and drop your answers in the comments section below .

Three lucky winners will receive Amazon gift vouchers .

Many experts in the crypto industry say that around 40% of new crypto users will use NFTS as their entry point as a result of its growing popularity .

NFT could represent a more significant part of the digital economy in the future .

We hope you enjoyed this video .

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Thank you for watching and stay tuned for more from simply learn .


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