NFT(Non Fungible token)

NFT

The full form of NFT is Non fungible Token are cryptographic assets on a blockchain with unique identification codes and Metadata that distinguish them from each other.

• NFTs are unique cryptographic tokens that exist on blockchain and cannot be replicated 
• NFTs can be represented real-world items like artwork and real estate.
• "Tokenizing" these real-world tangible assets make buying , selling , and trading them more efficient while reducing the probability of fraud.
• NFTs can also function to represent individual "identities , property rights and more 
• Collectors have sought NFTs as their value initially soared , but has since moderated.

Knowledge about  Non fungible tokens (NFTs) Envolve from the ERC-721 standard developed by some of the same people responsible for the ERC-20 smart contract ERC-721 defines the minimum interface ownership details , security and metadata required for the exchange and distribution of gaming tokens. The ERC 1155 standard takes the concept further by reducing the transaction and storage costs required for NFTs and batching multiple types of non fungible tokens into a single contract.

Like Physical money, cryptocurrencies are fungible meaning that they can be traded or exchanged one for another , for example tone bitcoin is always equal in value to another bitcoin. Similarly a single unit of either always equal to another unit this fungibility characteristic makes cryptocurrencies suitable as a secure medium of transaction in the digital economy.

Note:- Just like bitcoin, NFT also contain ownership details for easy identification and transfer b/w token holders owners can also add meta data or attributes pertaining to the assets in NFTs.

For example :- Tokens representing coffee beans can be classified as fair trade or artists can be sign their digital artwork with their own signature in the metadata.

Why  NFTs are important?

Non fungible tokens are an evolution of the relatively simple concept of cryptocurrencies modern finance system consist of sophisticated trading and loans system for different asset types, ranging from estate. to lending contracts to artwork. By enabling digital representation of physical assets NFTs are a step forward in the reinvention of this infrastructure.

• NFTs in the Real and virtual world virtual world  NFT can also democratize investing by fractionalizing physical assets like real estate  assets among multiple owners than a physical one that tokenization ethic need not be constrained to real estate it can be extend to other assets , such as artwork. Thus a painting need not always have single owner its digital equivalent can have multiple owners each responsible for fraction of the painting such argument could increase its worth and reverse.

How can I Buy NFTs ?

Many NFTs can only be purchased with ether , so owning some of this cryptocurrencies and storing it in digital wallets is usually the first step. you can then purchase. NFTs via any of the online NFT market places, Including opened 

Are NFTs safe?

Non-fungible token, which use blockchain technology just like cryptocurrency are generally secure. The distributed  nature of blockchains makes NFTs different although not impossible to hack. One security risk for NFT is that you could lose access to your non-fungible token if the platform hosting the NFT goes out business.