The Diary Game 08/05/2021. What is an NFT ?

in Italy • 3 years ago

NFT_Banner.jpg
source

I'm sure you've heard the term NFT a lot lately and you're wondering what it is. It currently appears in the news in the category of strange and expensive new things, but the name and what's represent, could stay with/in the digital world for a very long time.

So what are NFTs? An NFT must be thought of as a digital deed of ownership combined with a digital certificate of authenticity.



An NFT can be attached to a digital file: a photo, a drawing, a song, a video - anything in the end. The person who owns the NFT can therefore say something like: even if there are other copies in the world, the NFT shows that I own the original and that I have property rights over it. And, as you may have noticed, there is a large market for unique objects, even if they are digital and not on paper, canvas, ceramics or anything else.

Let's start with the acronym NFT = non-fungible token.



Fungible, means

Which may be replaced by another of the same kind, quality and quantity, if it is the subject of an obligation. Online Dex.

The Merriam-Webster definition is the following

being something (such as money or a commodity) of such a nature that one part or quantity may be replaced by another equal part or quantity in paying a debt or settling an account.

In other words, the term is rather related to money or other valuables. Banknotes are fungible, for example. If you lent me $ 100, I don't have to give you back the same piece of paper I received. I can give you another one, also $ 100, and the debt is paid.

Bitcoins are fungible. It doesn't matter exactly which you have of all the existing ones, none is more special than another. Gold, oil or wood are fungible raw materials, because it does not matter exactly what gold ingot you have or where the gold was extracted from its composition.

Non-fungible therefore means the opposite: something unique, which cannot be replaced by a similar one. That's why that certificate of authenticity.
The NFT shows that the object you have is unique, ie individualized through a series, with the provenance and possession known and guaranteed by the NFT.

By analogy = any expensive object because it once belonged to a star, for example. Have you watched the Pawn Stars show? A baseball ball costs $ 3. The ball hit by Mickey Mantle when he won the world championship, possibly signed by him with a signature confirmed by an expert and all it takes to prove that it is that ball? It probably costs $ 300,000.

Token is a term related to the digital world and the method of creating NFTs. Blockchain technology is used to create and guarantee the security of an NFT, and some elements related to blockchain are called tokens.

I've explained the blockchain before. The technology itself is very interesting. A chain of blocks, each block having written in it some information (encrypted), plus the id of the previous block and the next block. Together they make a chain, and this chain is public and therefore found on hundreds of thousands of computers around the world at the moment.

beeple.jpg
source

This means that you cannot modify the information in a block to falsify it, for example. Why? Because you can modify the blockchain in your computer, but the original one exists on hundreds of thousands of other computers and servers and, if necessary, it can be proved that yours is the altered one.

By analogy, theoretically you can falsify the deed of ownership of a house or land and then, like James Bond at night, you sneak into the Court of your city or where such deeds are officially held. You go in there, take out the original, put the forged one in its place and you're done, you took things to your advantage.

Now imagine that the court archive would actually be copied a thousand times, copies of the documents being in a thousand other buildings in this country. Much harder, practically impossible, to do the replacement in all this simultaneously, right?

So the things written in a blockchain stay there and their authenticity can be confirmed at any time. Blockchain is a very fast and very versatile decentralized security technology. Bitcoin, Ethereum and other are just an application of the technology itself.
NFTs are another.

#thediarygame #italy #betterlife #wtritings #steemexclusive #steemcurators #blog
3 years ago in Italy by
$27.13
  • Past Payouts $27.13, 0.00 TRX
  • - Author $13.79, 0.00 TRX
  • - Curators $13.33, 0.00 TRX
73 votes
Reply 0

Coin Marketplace

STEEM 0.18
TRX 0.15
JST 0.028
BTC 63099.80
ETH 2455.59
USDT 1.00
SBD 2.58