NFT is a kind of non-exchangeable token, which is usually found on blockchain. Although it has been around since 2014, NFT is becoming more and more in demand by the end of 2021. Blockchain itself is a technology that is used as a digital data storage system that is connected via cryptography. Quoted from CNN, NFT is a digital asset in the form of works of art or collectibles that can be used to buy things virtually. Art and collectibles can be in the form of photos, pictures, songs, sound recordings, videos, games, and so on.
Although it can be used to buy something, unlike crypto assets, NFT is difficult to trade. NFT has several advantages, one of which is related to the level of authenticity. The NFT concept allows buyers to own the original without anyone copying it. Not only that, NFT also includes proof of ownership in the form of certification. Several sites that provide buying and selling NFT, such as Nifty Gateway, Mintable, Rarible, and OpenSea.
So, a Non-Fungible Token (NFT) is a digital asset that represents a valuable item with a value that cannot be replaced or exchanged. Each NFT has transaction log data in the blockchain. This data contains the creator, price, and ownership history. How is NFT different from Other Crypto Assets? In essence, an NFT is an asset that evolves from cryptocurrency. However, it has a different purpose, form, and use from crypto assets like Bitcoin, for example. Each NFT is only created once and it cannot be exchanged or traded with other NFTs because their value is not commensurate.
The unique NFT data works like a fingerprint which makes it easy for the system to verify ownership. The owner or creator may also store certain information in it. For example, creators can attach a signature to their artwork by including it in the NFT metadata. In addition, NFT ownership is absolute, meaning that whoever owns it has full ownership rights. The copyright to reproduce the work remains with the author, but the owner is the only one who owns the original work. NFT also cannot be divided into smaller denominations like satoshi BTC or wei ETH. They exist exclusively as a whole.
Why is NFT So Popular? NFT actually became popular in 2017, when the first NFT game was launched, namely CryptoKitties. CryptoKitties itself is an Ethereum blockchain based game that allows players to adopt, raise and trade virtual cats. The NFT market is experiencing rapid development starting at the end of January 2021.