What are NFTS?
NFTS, Non Fungible Tokens , are digital assets that are stored and managed within a blockchain.
What is the difference? A fungible item is anything that can be exchanged for another equal item, for example a bitcoin, 20 euros, etc…
In contrast, a non-fungible item is something that is different, and that, if I don’t exchange it with someone, I won’t find something exactly the same.
To understand it better, an NFT would be like a unique work of art, for example, Michelangelo’s David, there is only one and it is in the Galleria dell’Accademia in Florence; if someone wanted to have that particular David, they would have to buy it (if it were for sale) or get a copy, in which case, we would no longer be talking about the original, which is what gives the sculpture its value.
That is why NFTs are often attached to some works or digital illustrations. Their price is really whatever people want to give them.
How do NFTs work?
NFTs work through blockchain technology. This is the same technology as cryptocurrencies, which work through a decentralised computer network, with blocks or nodes linked and secured using cryptography. Each block links to a previous block, as well as a date and transaction data, and by design they are resistant to data modification.
NFTs are assigned a kind of digital certificate of authenticity, a set of metadata that cannot be modified. This metadata guarantees their authenticity, records the starting value and any purchases or transactions that have been made, as well as their originator.
What are the characteristics of NFTS?
Strangely unique: these assets have many similarities to works of art. Copies of which may exist, but only the owner can verify that he or she is the true and only owner of the original work.
Indivisible: unlike cryptocurrencies, NFTs cannot be divided into smaller parts, and have full value as a complete entity or token.
Indestructible: the data of an NFT is stored on the blockchain through a smart contract, which makes it impossible to destroy or replicate.
Absolute ownership: unlike music or film, if you buy one of these goods, you own it completely.
They are verifiable: the blockchain makes it possible to verify something that is more complex to prove or certify with items such as art or stamp collecting.