NFT (Non-Fungible-Token) has become one of the popular topics of recent times. People who want to use NFT are also curious about its features and how to use it. What is NFT and how is it used? All the details…
What is NFT?
NFT is a unit of data stored on the blockchain that confirms that a digital asset is unique and therefore not interchangeable. NFT (Non-Fungible-Token) cannot be exchanged or traded. In this respect, it has the value of being unique. In recent years, NFT production and use, in which celebrities and artists compete with each other, has become even more remarkable with its unchangeable feature.
For example, when an artist or person converts a work of his own to NFT, these NFTs cannot be changed. NFTs have a private digital signature, which is copyrighted. On the other hand, the royalty fee is paid to the owner of the NFT each time with the sale made from the NFT.
NFT is non-tradable and immutable. It also means transforming works of art into digital and selling them digitally. The most important feature is that it is unique. NFTs use blockchain technology. Cryptocurrencies such as Bitcoin and Ethereum also use blockchain technology.
It’s much more common for digital artwork, songs, GIFs, and videos to have their own NFT. Even in-game collectibles can be represented by NFTs and financial staking products. Crypto art and NFTs are not limited to just one format. So there are no limits when it comes to creativity for the new NFT.
How is NFT Used?
NFTs are generated according to the ERC-721 token standard. ERC-721 is made by Ethereum developers. To generate and use NFT, it is necessary to have a cryptocurrency wallet. The file is uploaded to the IPFS system via the specified platforms. Then the unchangeable parameters of the NFT are determined.
Issues such as how much NFT will be produced, what the price will be, and how much share you will have to pay in the next sale are taken care of. After that, the transaction fee of the blockchain network is paid and the NFT is generated. Once the transaction is finished, the NFTs are transferred to your wallet and recorded on the entire blockchain. NFTs are adaptable to many industries.
The most important consideration when choosing a wallet to use NFT is to control the blockchain network from which the token was issued. If this is an Ethereum token, a wallet that supports Ethereum is required. If issued on Tezos, it is necessary to have a wallet that offers Tezos support.
The usage areas of NFT are quite wide and it can be produced in many areas from sound files to items in games, from pictures to videos. In addition, recently, the owners of tweets on Twitter have started to create NFTs.
In addition, it is easy to find out who the owner of the NFTs produced in the digital environment according to certain standards is. In this way, inquiries can be made for the desired NFTs and it can be easily purchased without any doubt about the originality of the work.
