What are NFTs, and How do They Work?
NFT stands for “Non-Fungible Token.” A non-fungible token is a digital item that is original, unique, and non-interchangeable. An NFT cannot be the same as any other digital item. Some examples of NFTs are videos, pictures, audio files, digital artwork, or even tweets. (Twitter’s CEO Jack Dorsey auctioned his first tweet as an NFT, which sold for $2.9 million)
Many people purchase NFTs to own the original item and all of its rights to use that item as they please. For that reason, NFTs have become a potential disruptor for industries like sports, music, art, and overall trading.
Buying and selling NFTs is very similar to making a purchase in the physical world. When you want to purchase an item in the physical world, you have to make sure the currency you have matches the currency the seller requests. In the digital world, when purchasing NFTs, you need a digital wallet that supports the desired digital currency.
Similarly, to sell one of your NFTs, you need to determine whether you want the piece to be sold at a fixed price or through an auction. Once that is determined, then a buyer will purchase the item with their digital currency.
In conclusion, NFTs may seem like a difficult concept to wrap your head around, but it is just a more complex version of buying and selling goods in the physical world.
What are your thoughts on NFTs? Let us know in the comment below.