What Is NFT?

What is NFT?

NFT stands for Non-Fungible Token. It is a unique, individual token existing on a blockchain such as Ethereum. Irrespective to other cryptocurrencies like bitcoin, each NFT token contains unique data. In simpler words, non-fungible tokens are not interchangeable with each other. This nature of the tokens means their use cases differ greatly from their fungible counterparts. A normal token can be exchanged for the same type of token equally without any difference.

A good example is a dollar - if two persons have a dollar — they can swap dollars and it doesn’t matter, neither of them lose out since they are equal. Whereas, with non-fungible tokens they are both unique, meaning if both persons have an NFT, one could be a baseball card, and other could be a Birth Certificate — obviously they cannot exchange these two equally. Therefore making the tokens non-fungible.

?NFTs are used for creating verifiable digital scarcity. Moreover, they can also be easily utilized for many specific applications that require unique digital items. Non-fungible tokens have initially proven popular for blockchain games and collectibles like CryptoKitties, present on the Ethereum blockchain.

?NFTs are even used to represent in-game assets, which are in control of the user instead of the game developer. One of the amazing benefits of this arrangement is that the non-fungible tokens or digital items, may actually outlive the game they were initially created for and can be incorporated into separate future games.

?Artwork is another example of how powerful NFTs can be. By creating artwork on the blockchain as NFTs, artists can sell their content globally on decentralized marketplaces, and make a living off crypto. NFTs are one of the best ways to actually earn money over time, without needing to invest in it directly.

What gives an NFT its value?

Discussed here are some reasons that give an NFT its value.

1. Unique - Each NFT is unique, meaning it's one of its kind. You cannot make another NFT with the same token number on the same smart contract, i.e., there can only be one of that token ever. This is verified by the blockchain and can be seen by anyone.

?2. Copyright - Your NFT might come with copyright if you are using a renowned platform. If the seller chooses to do so - it means that the NFT is on the blockchain and the owner of that token would have complete commercial copyright to use that image or asset.

?3. Rare - Since they are unique and cannot be copied, they are rare. Most of the time, there are very few NFTs from an artist or seller, therefore you can safely assume that you would be one of the few people in the world that owns a collectible item that can be resold.

?4. Collectible - These NFTs/digital items are collectible. You can hold onto them, and their value will only go up in price since there are little ways to dilute the collection. Buying them to resell them can earn you thousands of dollars. There are plenty of people who do it everyday and earn a living from it.

?5. Immutable - No one can change the metadata on the token, no one can remove your image, or the name of the token, etc. This means it will never change, it will never be removed, it cannot be taken down off the blockchain. This is what gives it so much value and collectability

?6. Forever - NFTs are forever because the data doesn't change. Moreover the blockchain is forever, meaning you will always have that token if you buy it. You can always resell that token if you want. It's like buying a bar of gold - you own it, and you can do what you want with it.

?7. Resealable - You can always resell your NFT and make some serious cash out of it. Some NFTs have gone for $20,000+ when the original buyer only bought it for a few thousand dollars, making him over $15,000 in a short time and in ONE trade!

?Now that you know what NFT is, and what gives NFT its value, it’s time to learn how DPathway can help you with creating, selling and trading NFTs.

?DPathway, a leading NFT development company in India, offers world-class services for creating, selling and trading NFTs. They have an outstanding team of highly skilled and talented professionals who work closely with the clients to help them deliver one-of-a-kind NFT services, beyond their expectation.

?A renowned NFT agency in India, DPathway follows a proven approach to offer NFT services of the highest standards. So get in touch with their professionals today and start earning money by creating, selling or trading NFTs.