Hi there, have you been wondering what an NFT is, what is the value of an average NFT, how does it have any monetary value but you seem not to be able to understand the whole concept?
Well, today we are going to discuss what an NFT is, how the transaction takes place and how is it different.
NFT-Non fungible token
Non-fungible which means not replaceable, cannot be duplicated or interchanged with any other objects, i.e has a distinct value that separates it from any other.
For instance, let’s assume you entered a shop to buy a laptop, say MacBook Pro, absolutely there won’t be just one MacBook Pro on list table, should in case you need two, three or more copies of the exact laptop, same model, price, configuration with no difference or distinct value at all. This means it's fungible, replaceable with any others of the exact copy.
But for NFT to be non-fungible, that is it has a distinct value that separates it from others, just like the Mona Lisa art painted by Leonardo da Vinci. There are a lot of copies out there, but the original copy can be separated from the rest easily, also you may download Mona lisa image on internet with just a click, but the original copy worth over $870,000,000 (Eight hundred and seventy million dollars) as of 2021, same with NFT art, the original copy can easily be showed and ownership of the art is permanently recorded on blockchain network coupled with the transaction history when it is being purchased and transferred to another owner.
NB: Most people believed an NFT can only be an art, however music track, piece of text, app, real-world object, or even files that can be sold as an NFT
But How does NFT shows that it is Non-fungible ??
Firstly, Let’s go back to our regular bank transfer, whenever you initialize a transaction, let us say, buying food at the eatery, When you reach the cashier, you run your card through the scanner to initiate the transaction, your bank instantly receives a notification requesting the amount to be deducted from your bank account and be sent to the shop owners bank account, if all details and criteria are correct, the transaction will be approved and charges are applied.
But in crypto-transaction
There’s no bank standing as a third party, instead, the public network validates each transaction and keep the records open to everyone, the node complete the task of checking all transaction, validate, and approves it if all criteria are met.
As we previously discussed that NFT is running on the Ethereum network and any transaction made is recorded on the network, so no one can claim ownership of the art unless the person’s details are registered on the public network as the owner; this phenomenon is where the uniqueness concept manifest. Though you can see several copies out there, the original registered copy on the blockchain network cannot be duplicated but can be transferred to the owner.
Can I create an NFT with another person’s artwork?
Well, to create an NFT with someone’s artwork, ensure you have permission from the copyright owner.
Thank you for reading
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