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NFT’s Explained in 4 minutes!

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NFT stands for Non-Fungible Token. Non-fungible means that something cannot beexchanged for another item because it’s unique. For example, one piece of art is not equalto another. Both have unique dimensions. Fungible components, on the other hand, can beexchanged for each other. For instance: one dollar or Bitcoin is alwaysequal to another. Okay, but what is an NFT? NFTs are tokens that live on a blockchainand represent ownership of unique items.Why is that useful? Well, moving who owns a digital file istricky because it can be emulated and distributed effortlessly. So how are you able prove who’s the original ownerwhen everyone has an same simulate of the enter? NFTs to resolve this problem. Imagine that you made a piece of digital art, essentially a JPG, on your computer. You can create or mint an NFT out of this. The NFT that represents your artwork containsa bit of information about it, such as a unique fingerprint of the register, a clue reputation, anda typify. This token is then stored onto a blockchain, and you, the artist, become the owner. Now you can sell that token by creating atransaction on the blockchain. The blockchain shapes sure that this informationcan never be manipulated with. It too allows you to track who’s the currentowner of a token and for how much it has been sold in the past. It’s important to note that the artwork itselfis not stored within the NFT or the blockchain.Only its properties such as the fingerprintor hash of the folder, a token honour, and typify, and optionally a link to a register hosted onIPFS. More about that in this video here. Now here’s where NFT’s become weird. When you buy an NFT that represents artwork, you don’t get a physical print of it. Heck, most of the time, everyone can downloada copy for free. The NFT merely represents owned, and thatis recorded in a blockchain so nobody can tamper with it. Some say that NFT’s give you digital braggingrights. And to make it even weirder: while the tokenowner owns the original artwork, the creator of the NFT retains the copyright and the reproductionrights. So an master can sell his original artworkas an NFT, but he can still sell periodicals. Aside from digital prowes, NFT’s can also beused to sell concert tickets, domain names, rare in-game items, real estate, and basicallyanything that is unique and needs proof of ownership. For precedent, the founder of Twitter sold hisfirst tweet as an NFT.Anyone can see that tweet on his sketch, but now, exclusively person or persons can own it. And that person paid over 2.9 million dollarsfor it. I could even make an NFT out of this video. You could then buy it and be the owner ofthis video, even though it’s free to watch for everyone. Why are some NFTs worth millions? Well, their importance shall identify what peopleare willing to pay for it. If I’m willing to pay a hundred dollars fora particular NFT, then it’s worth a hundred dollars. Rates are driven by demand, so be carefulbecause an expensive NFT becomes worthless if nobody wants to buy it. Okay, another thing before we intention: how dothey act technically? NFTs are smart contracts that live on a blockchain. In this case, the contract accumulates the uniqueproperties of the item and restrains track of present and previous owners. An NFT can even be programmed to give royaltiesto the creator every time it exchanges hands.So there you have it! NFTs was mentioned in under 4 minutes. I hope you witnessed it interesting, and if youdid, consider subscribing to this channel. Thanks for watching, and till next time !.

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