What is NFT (Non-fungible token) & How do they work?

What is NFT (Non-fungible token)
& How do they work?
Field
BLOCKCHAIN / CRYPTO
Presented By
FINLAW CONSULTANCY

The first utilization of NFT goes back to 2014 when tech entrepreneur Anil Dash
and digital artist Kevin McCoy minted the first NFT named Quantum - a color-
changing pixelated octagon. Just three months after the Ethereum blockchain
was formed, the first fully-fledged NFT project was launched and demonstrated
at DEVCON 1.

The Rising Popularity
The rising popularity of the Ethereum blockchain over conventional token
platforms based on bitcoin gave rise to several NFT projects. While projects
like Cryptopunks, Colored Coins, and Rare Pepes are fundamental to NFT
development, it was the launch of CryptoKitties in October 2017 that
brought NFT into the mainstream. Some of these blockchain-based digital
cats were sold for over $100,000 triggering a massive growth in the NFT
ecosystem.
NFTs, (like all cryptocurrencies) have a huge impact on the environment NFT transactions must be verified
through blockchain to ensure that encryption is valid, which consumes huge amounts of power.

The “non-fungible” means more or
less it is unique and can’t be
replaced with anything else. For
example,a bitcoin fungball - do one
trade for another bitcoin,and you
will have the same thing.
One type of business card,however,
is non-fungible If you trade it for a
different card,you have something
different You left a squirrel and got
a 1909 T206 Hanus Wagoner,
which the stadium calls “Mona Lisa
of Baseball Card”. (I'll take their
word for it.)
So What is NFT?

How Do NFTs Work?
At a very high level,most NFTs are part of the ether
blockchain Ethereum is a cryptocurrency,such as
Bitcoin or Dogen,but its blockchain also supports
these NFTs,which store additional information that
makes them work differently than an ETH currency. It
is to be noted that other blockchains may implement
their versions of NFT (Something already exists.)

NFTs can be digital (such as drawing, music, your
brain has been downloaded and turned into an
AI), but a lot of the current excitement is using
tech to sell digital art.
A non-fungible token (NFT) is a unit of data that is stored in a
blockchain and used to represent the ownership of a unique physical or
digital property. India is jumping on the NFT trend to benefit creators
and artists; In India, its future looks bright like the crypto industry.
What is the
NFT shoplift
in the market?

Similarly, consumers are selling
their digital art, in-game assets,
memes, rare collectibles, or other
items through NFT use. These are
items that will otherwise find a
market in the physical world, such
as Twitter founder Jack Dorsey's
tweet for the first time, or Nine
Cat - a symbol of a flying cat with
a pop-tart body emitting a
rainbow. In addition to the rapid
growth of the NFT market,
knowing NFT and how they work
can prove beneficial and can be
profitable individually.

No Two NFTs Are The Same
Although NFTs function as normal cryptographic tokens,they are
slightly different from normal cryptocurrencies such as ether or
bitcoin. The bitcoin is swapped You can exchange one bitcoin to get
another bitcoin with the same value Part of the art,unparalleled,and
non-fungal You can't trade it for the same thing because no two NFTs
are the same.
NFTs are unique and can only have one owner at a given time This information is stored in the token's metadata and
is protected by the ether blockchain so that no one can tamper with NFT ownership. Each token has a unique
identifier and the owner can be easily verified through the blockchain. The ethereum network also acts as a platform
for peer-to-peer transactions of NFTs between creators and buyers.

With the rapid capitalization of NFT’s and the rapid growth of sales, with 8
touches and the introduction of various trading market locations, you can be
tempted to start making money on your collection. This may be a lucrative
decision but the future of NFT is uncertain.

Technology
Technology is still new to fully measure its benefits or disadvantages
because it is based on what the value of any NFT is, and if anyone is willing
to pay for it. Most experts think that this purchase increase is a bubble and
advise you to invest in it carefully. NFT has the potential to change the
dynamics of the art world, and it could mean money for auction mediators,
dealers, curators, or an intermediary between an artist and their audience.

The future of NFT in India looks bright like the crypto industry. Various
established crypto companies are negotiating to launch their NFT
marketplaces or partnering with young startups to use these exciting
domains. The country’s artists and creators have long been in trouble by
exhibitors, brands, and intermediaries to showcase their talents, often paying
huge commission fees. With the advent of digital marketplaces, artists are
feeling more empowered than ever to ‘meant and sell their art to a wider
audience and pocket a significant portion of the sale price.
Future of NFT in India

Final Takeaway.
Though there are several speculations on
NFT, it has been a dominating force in the
market and gradually increasing its
popularity. In the present time people
have great fascination towards crypto
concept. So NFT can easily retain its
popularity for a long haul of time.

Thank You.
Field
BLOCKCHAIN / CRYPTO
Presented By
FINLAW CONSULTANCY

What is NFT (Non-fungible token) & How do they work?

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