The news about the so-called NFTs or NFTs has become one of the most popular news during the past period, as each period of time shows a news about selling a picture or a music clip with huge amounts amounting to millions of dollars, but despite that, the term NFT is still not understood by most people far away. About its connection to digital currencies or cryptocurrencies.
But at the same time, there are many inaccuracies about these currencies, which some compare to encrypted digital currencies such as Bitcoin, while they are completely different. Let us talk in this article about this technology that will change many areas.
1-What is NFT technology?
NFT is an abbreviation for non-fungible tokens or non-fungible tokens, but as it turns out, the phrase “non-fungible” is somewhat vague, in short, it means that it is unique and cannot be exchanged for something else, for example, digital currencies such as Bitcoin It is exchangeable, as one currency can be exchanged for another of the same value, but for NFT they are digital assets, each of which has a different value that cannot be exchanged for other assets.
While NFTs give a person proof of ownership of a digital asset (a photo, video, drawing, tweet or music track, so that they can monetize ownership or the right to own), because the image or video, for example, is easy to obtain and difficult to maintain after Published online, owning an NFT does not necessarily mean that a person has exclusive rights because anything digital can be copied infinitely.
To be clear, the NFT can be compared to the Mona Lisa, where anyone can go to the museum and see the painting and even take a picture of it, but he can't bring the painting home with him because he doesn't own it, but the painting hanging on the wall in your home is like an NFT board because it's all yours and you decide what you want to do with it.
2-What is the difference between redeemable and non redeemable tokens?
All digital currencies or cryptocurrencies such as Bitcoin, Ether, Doge and other exchangeable tokens, where each currency can be exchanged for a currency similar to it, because both of them have exactly the same value, but for non-fungible tokens NFTs, they are considered a form of digital assets , as unlike cryptocurrencies that have a monetary value, each NFT has a unique valuation that cannot be exchanged for another, as it is not possible, for example, to exchange a house for another house on the same street because it has the same area and the same number of rooms.
3-How does NTF work?
One of the main benefits of owning a digital collectible against a physical collectible such as a Pokemon card or a rare coin is that each NFT contains unique information that makes it distinct from any other NFT and is easily verifiable. This makes creating and trading counterfeit collectibles useless because every item can be traced back to the original source.
Unlike regular cryptocurrencies, NFTs cannot be exchanged directly with each other. This is because no two NFTs are alike - even those on the same platform, game, or group. Think of them as festival tickets or an airline ticket. Each ticket contains specific information including the buyer's name, event date and venue. This data makes it impossible to trade festival tickets with each other.
The vast majority of NFT tokens were generated using one of the two Ethereum token standards, ERC-721 and ERC-1155. Schemes created by Ethereum that enable software developers to easily deploy NFTs and ensure their compatibility with the broader ecosystem, including exchanges and wallet services such as MetaMask and MyEtherWallet. Eos, Neo, and Tron have also released their own tokenized NFT standards to encourage developers to build and host NFTs on their blockchains.
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