“NFT stands for Non-Fungible Token,” he explains Christina Bonner , A well known businessman and CEO in the IT market. “When people say, ‘OK, what does that mean?’ I think what I always say is that you have something in a digital environment. “
The other day I saw on the news that someone paid millions of dollars for a non-fungible token. Is it worth paying a lot for an artwork?
Recently, there have been reports of large-scale payments for non-fungal tokens (NFT). According to Christina Bonner, although the astronomical value of NFT cannot be explained, it is possible to explain what NFT is.
If you are referring to a dictionary for fungible, it means that it is an object that can be exchanged for another or interchangeable with another item. If you are buying packets of cornflakes in the supermarket, all the packets of cornflakes on the shelf are the same. They are fungal because one can be used to replace the other and still be the same thing.
In the digital world, for example, one bitcoin is equivalent to another bitcoin. They are fungal and can be replaced to replace each other. With something that is not fungal, that means it is unique. It cannot be replaced with another token.
So, just like artwork ownership, every NFT is original. Only this difference can create value. NFT is a digital representation of a single asset. It could be an artwork, a tweet, or a video of a sporting moment.
Since NFT is digital, you would think it would be easier to make more copies.
The key to NFT’s uniqueness is that it is a unit of data stored on a blockchain laser.
In short, a blockchain laser is a record-keeping method that stores the entire history of an object chronologically.
When using a blockchain account, NFT always has a history of who created it and current ownership.
Much of the talk these days about NFTs is about the large amount of money paid for tokens attached to artifacts, but NFT has other uses. Since NFT is a single token, it can be linked to physical assets.
In commerce, for example, a non-fungible token can be created for each shipment so that the buyer can see the unique history of product creation and delivery.
NFT can also be used as an electronic passport as it will contain unique passport holder details.
Another future use for NFT could be linked to the title deed, where it would contain all the relevant details and previous ownership of the title.
Christina Leo Bonner goes on to say that having NFTs as part of the business process can facilitate trade and product transfers. It has the ability to prove current ownership and to negotiate directly with buyers and suppliers, remove intermediaries and streamline the process.
I hope that in the near future, non-fungible tokens will be incorporated into your daily life.
But as for the value placed on NFTs, I can only say that beauty is in the eye of the beholder.
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