Non-Fungible Tokens (NFTs) Fundamentals
Non-fungible tokens (NFTs) are Exploring the World of Digital Ownership. It has become a buzzword in blockchain and digital assets. NFT plays a very important role in the ownership of digital assets, especially art and digital content. Non-fungible tokens are unique digital assets. It is for the representation of the ownership or proof of authenticity for a specific item or piece of content. It is not like any cryptocurrencies such as Bitcoin or Ethereum because they are fungible and can be exchanged on a one-to-one basis but NFTs are distinct and indivisible. Each NFT possesses unique attributes that make it one-of-a-kind.
Most NFTs are built on blockchain technology. In this system, smart contracts is used to enforce ownership rules and automate transactions. Ethereum having its ERC-721 standard is a popular blockchain for NFTs. Many other blockchains like Binance Smart Chain and Flow have also gained prominence in the NFT sector like Ethereum.
The copyright act is very much restricted in many parts of the world but digital asset reproduction and sharing should be stopped anyhow with the proper implementation of the acts. In this modern world, it is very much difficult because there are varieties of content like sketch, art, music, etc. Sometimes they are a little bit modified so that this cannot be tracked by the digital checking of the copyright issues. Ownership is also a problem because content creators are being discouraged of making content as their assets of hard work have been stolen by others anyhow in this digital world.
This is not a bad side of the digital world but we should have some proper way out so that we can stop such happening in this digital format. NFT is the best solution to such kind of problems of digital art and activities of content protection rights. Content creators will be able to sell their assets of creative art and activities in the form of NFT at will with convenient prices and ownership rights.
So, the formats of digital content that can be converted into NFT will be discussed in the next post hopefully.
~ Regards,
VEIGO (Community Mod)
Really very nicely explained about non fungible tokens. Wish you all the best. Keep posting like this.