Non Fungible Token (NFT)- New Source Of Earning Money

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What is NFT?

what is NFT?

NFT stands for Non-Fungible Token. Non-fungible means that something which cannot be interchanged for another item because it’s unique. For instance, one piece of art cannot be compared to another.

The reason being both have distinctive properties. NFTs are tokens that live on a Blockchain and represent ownership of unique items.

Items that are fungible, on the other hand, can be traded. For instance: one dollar or Bitcoin is always equivalent to another

Why is NFT Useful?

Make Money WITH NFT

Well, tracking who owns a digital file is tricky because it can be replicated and distributed effortlessly. So how can you prove who’s the authentic owner when everyone has an identical copy of the file?

NFTs solve this problem. Assume you created a digital piece of art on your computer, which is simply a JPG. You can design or mint an NFT out of this.

A unique fingerprint of the file, a token name, and a symbol are all included in the NFT that represents your artwork. This token is then stored onto a Blockchain, and the artist, will possess the ownership of it. By creating a Blockchain transaction, you can now sell that token.

The Blockchain assures that this information can never be tampered with. It also allows you to track who’s the current owner of a token and the amount it was sold in the past. It’s important to note that the artwork itself is not stored within the NFT or the Blockchain. Only its attributes such as the fingerprint or hash of the file, a token name, and symbol, and optionally a link to a file hosted on IPFS.

Where NFTs become weird

You do not receive a physical copy of an NFT that depicts artwork when you buy it. Most of the time, everyone can download a copy free of cost. The NFT only represents ownership, and that is recorded in a Blockchain so nobody can play around with it. NFTs are said to give you digital bragging rights.

So, an artist can trade his original artwork as an NFT, but he can still sell prints. Apart from digital art, NFTs can also be used to sell concert tickets, domain names, rare in-game items, real estate, and basically anything that is unique and needs evidence of ownership.

 For example, the founder of Twitter sold his first tweet as an NFT. Anyone can view that tweet on his profile, but now, only one person can own it as that person paid over 2.9 million dollars for it.

Why are some NFTs worth millions?

Well, their worth is simply determined by what people are ready to pay for it. If I’m willing to pay a hundred dollars for a particular NFT, then it’s worth a hundred dollars. Prices are always driven by demand, so be careful because an expensive NFT becomes worthless if nobody wants to purchase it.

How does NFT work technically?

NFTs WORKS

Smart contracts that exist on a Blockchain are known as NFTs. In this situation, the contract records the item’s unique qualities as well as its present and prior owners. Every time an NFT changes hands, it can be configured to pay royalties to the creator.

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