Author: Bruski

Contents

What is NFT?

NFT stands for Non-fungible token.

Let’s separate the word Non-fungible token:

• Token
  • A representation of something on the blockchain.
• Non-fungible
  • It’s a economic term which describes the feature that one product with unique properties can not directly exchange to others.

In Ethereum, NFT is a way to represent any unique asset as an ethereum asset.

Every token can be related to a unique digital asset, such as drawings, sounds, videos or games etc.

In fact, it is a non-interchangeable unit of data stored on a blockchain, a form of digital ledger, that can be sold and traded.

From the programming perspective, a Non-fungible token is an ID generated by a smart contract which implemented the ERC-721 or ERC-1155 interface. It’s actually the specific smart contract (treat it as a online service) that combines the ID with the information of the digital asset, verifies the ownership and handling the transferability. If you don’t quite understand here, don’t worry, we will dive into that later.

Properties

• UNIQUE
  • Every NFT is globally unique with the pair of its contract address and token id
• PROVABLY SCARCE
  • The quantities of NFTs are decided at the first creation by the creator, they can be rare.
• INDIVISIBLE
  • NFT can only be trade as a whole asset, unlike cryptocurrencies.
• OWNERSHIP
• TRANSFERABLE
• SAFE