1.1 NFT (Non-Fungible Token)
Last updated
Last updated
As you know what tokens are and why they are created, it is time to learn about the term NFT, otherwise known as non-fungible tokens.
As you can tell by the name, NFT is indeed a token. A token that is non-fungible.
By definition, the word "fungible" means that something is replaceable; in other words, it is not unique. Therefore, an NFT is a unique token, and you cannot find any other identical token on any blockchain. It certifies ownership and authenticity. It cannot be copied, substituted, or subdivided. The ownership is recorded in the blockchain, and it is also transferable, allowing it to be sold or sent by the owner to a third party.
An NFT can be created and utilized for various purposes across different fields. One of the most prevalent reasons for creating an NFT nowadays is to contribute to NFT collections, which feature JPEG artworks. By purchasing these NFTs, you gain membership in various communities. As a member, you can actively participate in voting proposals, stake your NFT for yield generation, gain whitelist access to other projects, and even use your NFT in play-to-earn (P2E) games.
NFTs have a lot of potential since they can be used for other reasons too. Many of them include things such as:
Tokenizing Real-World Assets: NFTs can represent physical items such as real estate, luxury goods, or rare collectibles. It offers the ability of fair ownership and liquidity for traditional illiquid assets.
Event Tickets and Access Passes: NFTs can be used to sell tickets for various events, concerts, exhibitions or even exclusive experiences.
Intellectual Property and Licensing : Creators can use NFTs to own the IP rights of their work by proving ownership and also track its usage or resale .
Of course there are many other ways that NFTs can be used and these were some examples/ideas on how they can be used to bring about significant advancements and positive impacts in various fields."
On the next page you will learn how to buy NFTs on different chains.
