NFT is a term that is becoming very popular these days. Many of us may have heard about this term in news or on YouTube. You may have also heard that some are earning millions through this. So today I will tell you in detail about NFT.
What does NFT stand for?
NFT stands for Non Fungible tokens. This full form will not make much sense to you. So I will explain it further.
Anything which can be exchanged with another thing, because of being identical can be called fungible.
For example- I have a 20 rupee note and my friend also has a 20 rupee note. Both notes are fungible because they can be exchanged. They have the same value. So I think you would have got the idea of what being fungible means.
Now Non-fungible is just the opposite of it. A good example can be the painting of the Mona Lisa, this painting is unique and identical. This painting can not be exchanged with another painting as we exchanged the notes in the above example.
What does NFT do?
They are tokens that live on a Blockchain and represent ownership of unique items. It all works digitally.
To know more about Blockchain, check my other article.
NFTs solve the problem of ownership of a digital file. For example, I create digital art and I want to sell it. The problem with anything digital is that it gets copied easily. NFT solves this problem. I can mint an NFT for my digital artwork and then I will be able to sell it without the fear of a dispute of ownership.
NFTs have unique codes and links to the digital art associated. And it all works on Blockchain technology. So anytime I sell my digital art to someone, his name will be registered in the Blockchain of that particular NFT. This way he will become the owner and he can also sell that NFT further. When someone else will buy that NFT his name will also add to that Blockchain as a new entry.
Controversies related to NFTs
What is interesting about it is that people still can create digital copies of the digital art that you sell in form of NFTs. Some attack NFT technology because of the fact that if anyone can just click the screenshot of the digital art you sell for millions. That’s the weakest point of this technology. But the defendants cite the ownership aspect of it. They say as a physical copy of the Mona Lisa can be created but that won’t be worth equal to the real Mona Lisa painting, the same is the case with NFTs. It’s all about the ownership of the real thing, irrespective of the duplicate copies produced.
What are your opinions on it, tell us in the comments.